Measuring the Sustainability Performance of Tech Companies: Scale Development Approach for Achieving Corporate Social Responsibility

ABSTRACT The European Union (EU) has consistently advanced sustainability goals, with the 2019 European Green Deal (EGD) serving as a cornerstone initiative aligned with global sustainability frameworks. Yet, the combined impact of the Covid‐19 pandemic, energy market volatility, and supply chain disruptions has amplified the urgency of evaluating corporate sustainability, particularly, within the technology sector, where rapid growth and resource intensity attract heightened scrutiny. Although several sustainability performance scales exist, none have been specifically designed for high‐tech companies, a sector underrepresented in sustainability research despite its growing significance and unique challenges such as data privacy, algorithmic bias, and platform governance. This study develops and validates two stakeholder‐driven scales to measure the sustainability performance of tech companies, integrating the perspectives of both internal and external actors across economic, sociocultural, environmental, and governance dimensions. Governance is given particular emphasis, reflecting its central role in ESG frameworks such as GRI, SASB, and the EU CSRD. Using partial least squares–structural equation modeling (PLS‐SEM) and confirmatory composite analysis (CCA), the study introduces the first measurement tool designed specifically for high‐tech firms. The findings advance sustainability scholarship by filling a critical methodological gap and offer regulators and practitioners a robust framework for evaluating sustainability in a sector that is both innovation‐driven and sustainability‐challenged.