Evaluation of decision-making for the optimal value of sustainable enterprise development under global 100 index thinking

Tyrone T. Lin, Shu Yen Hsu, Chiao Chen Chang

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study seeks the best economic returns of a company's sustainable business process, employs the Triple Bottom Line Model using the Global 100 Index as the decision variable, and follows the Geometric Brownian Motion, so as to determine the optimal timing for the input of environmental and social costs. The results of the sensitivity analysis show that when the average growth rate of the Global 100 Index is low, the optimal timing for the company's input of environmental costs and social costs can be obtained. Analysis of the numerical example shows that, based on the financial value of the economic factor, companies should invest in environmental costs as soon as possible. This study replaces the conventional net present value model with the options evaluation model, uses the Global 100 Index as the threshold for decision-making evaluation to provide a more complete decision-making evaluation reference for enterprises, and makes up for the gap in recent research regarding investment time and decision variables. The study results introduce potential strategic value evaluations into the evaluation model of long-term uncertain sustainable operation value, which is more appropriate for the evaluation of the real sustainable operation value. It also provides implementation strategies for decision-makers to mitigate risks under uncertain environments and is the major difference and value of the Real Options Approach (ROA) to supplement Net Present Value (NPV) principles. The results of this study provide a reference for the sustainable development decision-making of corporate sustainability and feasibility and offer an important link in the value chain of food industry operations and management.

Original languageEnglish
Article number1106
JournalSustainability (Switzerland)
Volume11
Issue number4
DOIs
Publication statusPublished - Feb 1 2019

Fingerprint

Decision making
decision making
evaluation
Industry
social costs
Values
Costs
Sustainable development
Brownian motion
Economics
food and luxury products industry
food industry
Brownian movement
present
value chain
costs
economics
economic factors
Sensitivity analysis
supplement

Keywords

  • Corporate social responsibility
  • Corporate sustainability
  • Environmental protection
  • Triple bottom line

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Management, Monitoring, Policy and Law

Cite this

Evaluation of decision-making for the optimal value of sustainable enterprise development under global 100 index thinking. / Lin, Tyrone T.; Hsu, Shu Yen; Chang, Chiao Chen.

In: Sustainability (Switzerland), Vol. 11, No. 4, 1106, 01.02.2019.

Research output: Contribution to journalArticle

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