Sustainable Performance Assessment based on Multi-Attribute Utility Model

In this study, in order to evaluate sustainable performance of banks, a framework on the basis of multi-attribute utility approach presented by Rebai et al. (2012) has been employed, and effort has been made to assess the performance of bank from the perspective of different stakeholders, taking into account their various criteria. From this standpoint, a sustainable bank is one that can achieve a certain level of general satisfaction for all its clients and stakeholders. Two basic questions have been answered in this research: "how is the performance of the banks under study appraised on the basis of the criteria intended by each of the stakeholders?" and how is the sustainable performance of banks in question according to multi-0attribute utility approach?" To evaluate bank performance, four groups of stakeholders, namely regulators, shareholders, customers and managers-employees have been identified. In the beginning a single-attribute utility function is defined for each of the employed sub-criteria. Then, a multi-attribute utility function is obtained for each main criterion. Next, a general utility function is defined for each stakeholder. A marginal score between zero and one is obtained for each stakeholder that shows the quality of performance with respect to the group criteria. Among the banks, Bank Mellat was found to be the most sustainable Iranian banks, and Tejarat, Saderat, Parsian, Pasargad, and Eghtesad-Novin banks were in the second to the sixth places, respectively. The results indicate that perivetized banks under artcle 44 are more sustainable compare to privately established banks.