A proposal on a method for multi-criteria decision-making of eco-business options

Abstract

Eco-businesses that satisfy environmental consciousness and high quality of life simultaneously can be the keys to establish a sustainable society. However, since eco-businesses have at least 2 criteria, environmental and economical aspects, it is sometimes difficult to overcome the trade-offs and determine a proper business strategy. In this paper, a method proposed by the authors and named Total Performance Analysis (TPA) is applied to evaluate business options. Although there is a conflict between 2 well-known indexes, 'eco-efficiency' and 'value per cost,' the paper shows the newly proposed index can adjust the conflict through the case study. The paper tries to conclude that the TPA is a suitable method for decision-making of eco-business under multi-criteria, not only because it can evaluate environmental and economical aspects both, but also because it can model rise and fall of products' values throughout life cycles. Such feature of the TPA is important to simulate the effects of business options properly combined with products. © Springer-Verlag London 2013.