Prerequisites for decision aid in socially responsible investment appraisals

Sara Vickman, Aron Larsson and Leif Olsson

International Journal of Engineering Management and Economics, 2012, vol. 3, issue 4, 359-377

Abstract: This paper explores investment appraisals restrained by various sources of uncertainty and influenced by socially responsible investment (SRI) thinking. Of particular interest in this paper is to assess the additional aspects of investment appraisals that derive from SRI thinking together with the multiple sources of uncertainty arising in such decision problems. We assess characteristics of how managers' try to account for corporate social responsibility, how they cope with evaluating upon objectives beyond monetary return on investment and how they manage uncertainty and the source of the uncertainties they emphasise. We conclude that organisations are generally exposed to and also consider both aleatory and epistemic uncertainty. There is a mix of macro and micro variables creating a diversified environment where valuation methods such as real options in combination with decision analysis modelling could help in structuring the problem and provide informed decision making.

Keywords: investment analysis; multicriteria decision analysis; MCDA; real options; socially responsible investments; SRIs; corporate social responsibility; CSR; exploratory study; investment appraisals; uncertainty; modelling; decision making. (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=52405 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijemec:v:3:y:2012:i:4:p:359-377

Access Statistics for this article

More articles in International Journal of Engineering Management and Economics from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().