Socially Responsible Investment: A Multi-Criteria Decision Making Approach (International Series in Operations Research & Management Science Book 219)

This book integrates socially responsible investment into modern portfolio theory from a multi-criteria perspective. Socially responsible investment is a “new deal” championed by the institutional investment and bank sectors, agents that influence mutual funds and other collective investment schemes and which fear that financial strategies without ethical constraints can harm sustainable growth and prosperity. The book shows how to combine financial criteria such as profitability and risk with non-financial criteria such as the protection of the ecosystem, responsible consumption of energy, and healthcare campaigns. The book’s first part presents critical issues in ethical investment, while the second explains in detail the application of goal programming techniques for SRI funds, illustrating their use in actual cases. Part three demonstrates how compromise programming can be applied in the contexts of portfolio selection and risk management. Finally, in its fourth part the book examines the application of other decision-making support methods like the Analytic Hierarchy Process (AHP) framework, the Reference Point Method, and soft computing techniques for portfolio selection. Front Matter....Pages i-xviii Front Matter....Pages 1-1 The Ethical Financial Question and the MCDM Framework....Pages 3-22 Profiling Ethical Investors....Pages 23-52 Social Performance and Financial Performance: A Controversial Relationship....Pages 53-73 Measurement of Assets’ Social Responsibility Degree....Pages 75-108 Front Matter....Pages 109-109 Portfolio Selection by Goal Programming Techniques....Pages 111-129 Selecting SRI Financial Portfolios Applying MV-SGP Model....Pages 131-141 An Actual Case of SRI Financial Portfolio Choice by MV-SGP....Pages 143-152 Front Matter....Pages 153-153 Compromise Programming and Utility Functions....Pages 155-175 Portfolio Selection by Compromise Programming....Pages 177-196 Ethically Constrained Portfolio Selection of Funds by CP Modelling: A Real World Environmental Case....Pages 197-210 Evaluating Fund Performance from Financial and SRI Criteria....Pages 211-224 Front Matter....Pages 225-225 Ranking Socially Responsible Mutual Funds Based on the Particular Preferences of the Decision Maker....Pages 227-262 Portfolio Selection with SRI Synthetic Indicators: A Reference Point Method Approach....Pages 263-282 Soft Computing Techniques for Portfolio Selection: Combining SRI with Mean-Variance Goals....Pages 283-301 This book integrates socially responsible investment into modern portfolio theory from a multi-criteria perspective. Socially responsible investment is a ĺlnew dealĺl championed by the institutional investment and bank sectors, agents that influence mutual funds and other collective investment schemes and which fear that financial strategies without ethical constraints can harm sustainable growth and prosperity. The book shows how to combine financial criteria such as profitability and risk℗lwith non-financial criteria such as the protection of the ecosystem, responsible consumption of energy, and healthcare campaigns. The bookĺls first part presents critical issues in ethical investment, while the second explains in detail the application of goal programming techniques for SRI funds, illustrating their use in℗lactual cases. Part three demonstrates how compromise programming can be applied in the contexts of portfolio selection and risk management. Finally, in its fourth part the book examines the application of other decision-making support methods like the Analytic Hierarchy Process (AHP) framework, the Reference Point Method, and soft computing techniques for portfolio selection