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Ethics in Investment and Portfolio Selection: A Review

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Book cover Financial Decision Aid Using Multiple Criteria

Part of the book series: Multiple Criteria Decision Making ((MCDM))

Abstract

This paper reviews different approaches to ethical investment. We define the concept and present its importance and implications. We focus on portfolio selection. We show that multi-objective portfolio selection models are the most appropriate way to select ethical investment.

Ethical investment maximizes both financial returns and social good. People can use it to invest in companies that share their personal views. We show that in portfolio selection models, ethical criteria mainly involve companies’ commitment to the environment, to their social responsibility and their governance policy.

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Author information

Authors and Affiliations

  1. NEOMA Business School, Mont-Saint-Aignan, France

    Fouad Ben Abdelaziz & Maroua Abed

  2. Logistics and Technology Innovation Research Center, Institut des Hautes Etudes, Paris, France

    Fouad Ben Abdelaziz & Maroua Abed

Authors
  1. Fouad Ben Abdelaziz
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  2. Maroua Abed
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Corresponding author

Correspondence to Fouad Ben Abdelaziz .

Editor information

Editors and Affiliations

  1. College of Business Administration, University of Bahrain, Sakhir, Bahrain

    Hatem Masri

  2. Department of Quantitative Economics, University of Oviedo, Oviedo, Asturias, Spain

    Blanca Pérez-Gladish

  3. School of Production Engineering and Management, Technical University of Crete, Chania, Greece

    Constantin Zopounidis

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Abdelaziz, F.B., Abed, M. (2018). Ethics in Investment and Portfolio Selection: A Review. In: Masri, H., Pérez-Gladish, B., Zopounidis, C. (eds) Financial Decision Aid Using Multiple Criteria. Multiple Criteria Decision Making. Springer, Cham. https://doi.org/10.1007/978-3-319-68876-3_9

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