A decision support framework for socially responsible supplier selection in the Nigerian banking industry

Abstract

Purpose

Sustainability trends have changed the modus operandi in businesses even as the market environment becomes more socially conscious. However, relatively little research has been conducted on integrating social sustainability aspects with a focus on corporate social responsibility (CSR) into the selection of suppliers in the service sector, particularly the banking industry. In this paper, this study aims to propose a CSR decision support methodology to evaluate and prioritize socially responsible suppliers.

Design/methodology/approach

A novel integrated decision support methodology composed of Shannon Entropy and TOmada de Decisão Interativa e Multicritério (TODIM) methods is introduced. The Shannon-Entropy approach is used to estimate CSR factor weights, and TODIM is used to rank the suppliers, with the process completed in a group decision setting.

Findings

A Nigerian bank was used as a case study to test and show the usefulness of the CSR-based decision framework in evaluating and selecting socially responsible suppliers. The results show the topmost ranked suppliers that are recommended for future negotiations by the case (bank). The study will enable banks to select socially responsible suppliers, which could accelerate the attainment of sustainability objectives, protect their reputations and improve competitiveness.

Originality/value

This study pioneers the application of a novel decision methodology based on Shannon Entropy and TODIM in selecting socially sustainable suppliers in the Banking sector of an African emerging economy-Nigeria.

Citation

Ojadi, F., Kusi-Sarpong, S., Orji, I.J., Bai, C., Gupta, H. and Okwara, U.K. (2023), "A decision support framework for socially responsible supplier selection in the Nigerian banking industry", Journal of Business & Industrial Marketing, Vol. 38 No. 10, pp. 2220-2239. https://doi.org/10.1108/JBIM-03-2022-0139