Development of a Quadruple Bottom Line-based Composite Sustainability Index to Measure Sustainable Performance

Manufacturing companies worldwide are faced with the critical issue of sustainable development. The aim of this paper is to develop a quadruple bottom line-based composite sustainability index which can be used by manufacturing firms in measuring their sustainable performance. The proposed index simultaneously considers a firm's economic performance, social performance, environmental performance, and corporate governance. Field study results indicated that an index having a value from 0 to 1 can indeed be computed based on several sustainability indicators expressed in varying units. The index can be employed for performance evaluation to monitor the sustainable performance of a manufacturing company through the years. It can also be utilized for benchmarking to compare sustainable performance with other firms.