Evaluating ESG Practices from the Perspective of Transparency and Accountability Through Clustering Analysis and MCDM Methods

This study explores the Environmental, Social, and Governance (ESG) disclosure practices of 31 information technology firms listed on Borsa Istanbul (BIST), with a particular emphasis on transparency and accountability. Building on legitimacy, stakeholder, and signalling theories, the study develops a composite ESG disclosure index based on 18 binary indicators covering strategy, environmental performance, social impact, stakeholder engagement, and governance structures. Each indicator is equally weighted and combined into environmental, social, and governance sub-indices, which are then aggregated into a firm-level ESG disclosure score using a single min–max normalisation scheme. K-means clustering, validated through the elbow method and silhouette coefficient, is applied to identify groups of firms with similar ESG disclosure profiles. The empirical results show substantial heterogeneity in disclosure intensity across Turkish IT firms. A small group of companies exhibits proactive and comprehensive ESG communication, whereas many firms disclose only limited and fragmented information. Governance- and reporting-related indicators (C6 and C7) are particularly influential, underscoring the importance of standardised ESG reporting and board-level oversight in strengthening transparency. The study contributes to the emerging ESG disclosure literature by providing a methodologically consistent framework for assessing ESG transparency in the IT sector and offering practical insights for regulators, investors, and corporate decision-makers aiming to improve the reliability of ESG reporting in Turkey.