On influencing factors for Sustainable Development goal prioritisation in the automotive industry

Abstract

Sustainability has become a key corporate strategy inspiring companies to implement the 17 Sustainable Development Goals (SDGs) in accordance with the 2030 Agenda for Sustainable Development proposed by the UN. Although studies do examine the SDG priorities, to our knowledge, the main factors that influence the prioritisation of the SDG remain hazy. We identify the SDG priorities in the automotive industry worldwide and from the point of view of the geographic, cultural, social, and economic specifics of the countries in which these companies operate. The automotive industry is a good subject of analyses because it is a pillar of the global economy and a main driver of macroeconomic growth, stability, and technological prosperity. We accordingly employ frequency analysis and the PROMETHEE multi-criteria decision-making method. The PROMETHEE method not only prioritises researched groups, but also the dependencies between the evaluating criteria and profiles of the groups’ performance. Frequency analysis showed that SDG 8 ’Decent work and economic growth’ was adopted by 81% of companies, followed by 3 ’Good health and well-being’, 5 ’Gender equality’, 12 ’Responsible consumption and production’, 13 ’Climate action’, and 4 ’Quality education’, which had similar frequencies. Overall, these six SDGs were adopted by at least 66% of companies. However, the PROMETHEE analysis confirms that SDG priorities are highly dependent on the continent and country’s basic economic performance. Companies from developed Asian economies and developing African economies have significantly different SDG priorities than the rest of the world. We also identified similarities between the developing American and developed European economies, the developing economies of America and Asia, the developed economies of America and Europe, and developing Asian and developed European economies. These findings may be particularly important for practice (managers, professional associations, investors, shareholders, and other stakeholders) and policy (policymakers, regulatory bodies, and sustainability initiatives).