Sustainability Assessment Using Economic Value Added

Abstract

Sustainability assessments should be based on financial and non-financial indicators. To describe the financial situation of companies and to calculate the actual economic profit of a company, the Economic Value Added methodology appears as a suitable solution. The aim of the paper is to apply the Economic Value Added methodology to real-life corporate data and present the company’s value through a case study. This study is based on information that was gathered through an extensive literature review (research publications and research studies (documents) about sustainability, corporate social responsibility, Sustainable Value concept, and Economic Value Added (EVA) methodology; and the company’s financial statements with notes of the selected company) using Internet and research databases and the author’s own experience. Methods of analysis, comparison, selection, abstraction, induction, deduction, determination, and statistics were used. In addition to the positives, this evaluation method also has negatives, including limitations (problems) in measuring a company’s value.

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