The Key Factors for Sustainability Reporting Adoption in the Semiconductor Industry Using the Hybrid FRST-PSO Technique and Fuzzy DEMATEL Approach

Abstract

The proliferation of sustainability reporting (SR) is in response to environmental and social responsibility, but investors are increasingly concerned over the effects of sustainability reporting in corporate sustainability. The Sustainability Accounting Standard Board (SASB)’s sustainability standards are acknowledged as the main framework for implementing this activity, yet the influencing factors among sustainability reports highly correlate and are diverse and complicated, especially in the semiconductor industry, which is the key driving force for economic development in China. To exploit and evaluate those key factors, this research introduces a hybrid model that integrates fuzzy rough set theory with particle swarm optimization (FRST-PSO) and a fuzzy decision-making trial and evaluation laboratory (fuzzy DEMATEL). FRST-PSO is adopted to filter out redundant and irrelevant factors, and the selected results are then inserted into fuzzy DEMATEL to depict the opaque relationships and set up a prioritization strategy for improvement among the factors. According to the findings on the magnitude of the impact, the priorities for improvement are environment, human capital, social capital, leadership and governance, and business model and innovation. Based on the results, an optimal and practical solution is proposed as the basis for information disclosure of sustainability reporting for the semiconductor industry.