Profitability and Sustainability Indicators of Ecuadorian Industries: Assessment using the Logistics Biplot approach

Facultad de Ingeniería Industrial, Universidad de Guayaquil, Ave. Raúl Gómez Lince and Ave. Juan Tanca Marengo, Guayaquil -Ecuador.

^* Corresponding author: luis.pilacuanb@ug.edu.ec

Abstract

Sustainable development has gained relevance in the 21st century, raising concerns in the industry about industrial practices, preservation, and rights in the long term. This study analyzes 103 Ecuadorian companies between 2020 and 2021, using the external logistics biplot to interpret complex relationships between the sustainability indicators and their influence on various business sectors. The results reveal a significant relationship between the adoption of sustainable practices and the size of companies, as well as a greater incidence of sustainability reports aligned with the Global Reporting Initiative (GRI) in large corporations. The evaluated indicators show a remarkably high predictive capacity in both years, with classification accuracy percentages greater than 79%. In 2020, greenhouse gas emissions and human rights indicators showed the strongest correlations. In 2021, the social dimension emerged as the most prominent, highlighting the importance of considering social aspects such as labor rights and employee well-being. These findings provide valuable insights for future sustainability research and policies in Ecuador, underscoring the need to promote sustainable practices for the economic and social development of the country.