ESG efficiency analysis in the IT industry: a DEA-based approach

Title

ESG efficiency analysis in the IT industry: a DEA-based approach

Creator

Arunkumar O.N.; Divya D.; Chandan

Description

Unlocking the power of sustainable growth, Environmental, Social, and Governance (ESG) principles are redefining the future of responsible investment and corporate excellence. ESG regulations ensure that organizations maintain sustainable development and improve non-monetary metrics, such as stakeholders engagement, customer satisfaction, market acceptability, societal ethics, and values. Higher ESG scores demonstrate commitment towards responsible business practices and indicate higher market value for companies, which are valid for all sectors, including IT. However, existing literature reveals that IT sector companies pay less attention to planning their operations to make them more sustainable. Therefore, IT firms must identify methods and practices to maintain high ESG scores to achieve sustainable growth. The current study leads the readers into a new area of ESG through the help of an advanced method, DEA. DEA (Data Envelopment Analysis) methodology has been used to identify the decision units relative efficiency scores and helps identify peers and followers based on ESG scores. The study reveals that among the selected IT firms using the output-oriented strategy, 56.25% experience increasing returns to scale, 18.75 per cent experience decreasing returns to scale, and the remaining 25.00 per cent report constant returns to scale. This indicates that most IT industry firms can generate greater output change in proportion to the input change. 2025 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

Source

Cogent Business and Management, Vol-12, No. 1

Date

2025-01-01

Publisher

Cogent OA

Subject

DEA; efficiency analysis; Environmental Economics; ESG; Finance; IT sector; Sociology & Social Policy

Coverage

Arunkumar O.N., Symbiosis Institute of Business Management (SIBM), Symbiosis International (Deemed University) (SIU), Karnataka, Bengaluru, India; Divya D., School of Business and Management, Christ University, Karnataka, Bengaluru, India; Chandan, Symbiosis Centre for Management Studies (SCMS), Symbiosis International (Deemed University) (SIU), Karnataka, Bengaluru, India

Rights

Restricted Access

Relation

ISSN: 23311975

Format

Online

Language

English

Type

Article

Identifier

https://doi.org/10.1080/23311975.2025.2450092

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85214935490&doi=10.1080%2f23311975.2025.2450092&partnerID=40&md5=6fa1de547dd2ad52e225926425e801e1