Statistical Method and Neural Network for SustainabilityEvaluation
Edward Kasem, Oldřich Trenz, Jiří Hřebíček · 2014
A sustainability report is an organizational report that conveys the information about economic, environmental, social and governance indicators in a way that is comparable with financial reporting. There are different methods for measuring corporate performance and assessing their sustainability. In this paper, two methods of environmental, social, governance and economic indicators assessment are described. The first one is Kren’s method, which imposes that all indicators and dimensions effect similarly on assessing the enterprises performance. Whereas the second one supposes that different indicators and dimensions don’t effect equally on enterprises score. The main objective of these methods is improving the benchmark between the enterprises and providing an active participation in decision-making. The paper will also outline ways of using neural networks for the classification of their financial situation. It is a relatively simple way based on historical data to assess the financial situation in which the business is located. At the end will be an assessment of the different approaches with regard to simplicity of implementation and accuracy of the conclusions reached.