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© 2015

Socially Responsible Investment

A Multi-Criteria Decision Making Approach

  • Enrique Ballestero
  • Blanca Pérez-Gladish
  • Ana Garcia-Bernabeu

Benefits

  • First book to approach socially responsible investment as a multicriteria decision making problem

  • Presents a normative, rather than a descriptive approach

  • Emphasizes the use of goal programming and compromise programming models to select ethical financial portfolios and to evaluate fund performance

Book

Part of the International Series in Operations Research & Management Science book series (ISOR, volume 219)

Table of contents

  1. Front Matter
    Pages i-xviii
  2. Critical Issues in Ethical Investment

    1. Front Matter
      Pages 1-1
    2. Enrique Ballestero, Blanca Pérez-Gladish, Ana Garcia-Bernabeu
      Pages 3-22
    3. Paz Méndez-Rodrı́guez, Laura Galguera, Mila Bravo, Karen Benson, Robert Faff, Blanca Pérez-Gladish
      Pages 23-52
    4. Hajer Tebini, Bouchra M’Zali, Pascal Lang, Paz Méndez-Rodrı́guez
      Pages 53-73
    5. Mila Bravo, Ana B. Ruiz, David Pla-Santamaria, Paz Méndez-Rodrı́guez
      Pages 75-108
  3. Goal Programming and SRI Funds

    1. Front Matter
      Pages 109-109
    2. Enrique Ballestero, Ana Garcia-Bernabeu, Adolfo Hilario
      Pages 111-129
    3. Enrique Ballestero, Ana Garcia-Bernabeu
      Pages 131-141
    4. Enrique Ballestero, Ana Garcia-Bernabeu, David Pla-Santamaria, Mila Bravo
      Pages 143-152
  4. Compromise Programming and SRI Funds

    1. Front Matter
      Pages 153-153
    2. Enrique Ballestero, Ana Garcia-Bernabeu
      Pages 155-175
    3. Enrique Ballestero, David Pla-Santamaria, Ana Garcia-Bernabeu, Adolfo Hilario
      Pages 177-196
    4. Ana Garcia-Bernabeu, Blanca Pérez-Gladish, Adolfo Hilario
      Pages 197-210
    5. Ana Garcia-Bernabeu, Blanca Pérez-Gladish, Adolfo Hilario
      Pages 211-224
  5. Other Decision-Making Support Methods

    1. Front Matter
      Pages 225-225
    2. Ana B. Ruiz, Bouchra M’Zali, Paz Méndez-Rodrı́guez
      Pages 227-262
    3. Paz Méndez-Rodrı́guez, Blanca Pérez-Gladish, José Manuel Cabello, Francisco Ruiz
      Pages 263-282

About this book

Introduction

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.

Keywords

Compromise Programming Decision Making Ethical Constraints Goal Programming MCDM Normative Portfolio Management Portfolio Theory Responsible Investment

Editors and affiliations

  • Enrique Ballestero
    • 1
  • Blanca Pérez-Gladish
    • 2
  • Ana Garcia-Bernabeu
    • 3
  1. 1.Department of Economics and Social SciencesUniversitat Politècnica de ValènciaAlcoySpain
  2. 2.Department of Quantitative EconomicsUniversity of OviedoOviedoSpain
  3. 3.Department of Economics and Social SciencesUniversitat Politècnica de ValènciaAlcoySpain

About the editors

Enrique Ballestero was a professor in Business and Finance at Technical University of Madrid and Emeritus professor at Technical University of Valencia (Alcoy School). He was a member of the International Society on Multiple Criteria Decision Making.

Blanca Pérez-Gladish is associate professor in the Department of Quantitative Economics at the University of Oviedo (Spain). She is also the coordinator of the Socially Responsible Investment and Sustainable Development Research Group. She received her PhD in 2001 and was appointed associate professor in 2009. Her research lines are focused on Multiple Criteria Decision Making and Socially Responsible Investment.

Ana Garcia-Bernabeu is associate professor in the Department of Economics and Social Sciences at the Technical University of Valencia. She received her PhD in 2000 and was appointed associate professor in 2004. Her expertise areas are decision analysis, environmental and natural resources and finance. She is member of the Socially Responsible Investment and Sustainable Development Research Group and of the International Society on Multiple Criteria Decision Making.

Bibliographic information

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