The sustainability balanced scorecard as a framework for selecting socially responsible investment: an effective MCDM model

Tsai W-H (), Chou W-C and W Hsu ()
Additional contact information
Tsai W-H: National Central University
Chou W-C: National Central University
W Hsu: National Central University

Journal of the Operational Research Society, 2009, vol. 60, issue 10, 1396-1410

Abstract: Abstract In recent years, sustainable development and social responsibility have become important issues around the globe. Investors are interested in the so-called ‘socially responsible investment’ (SRI), an investment strategy that employs criteria other than financial risk and return when selecting firms in which to invest. The practice of SRI shows that there are growing numbers of investors who want to take account of more criteria. Given this worldwide trend, the question arises how these issues can be incorporated into the investment decision process. This paper proposes a novel integrated model for selecting SRI stocks and illustrates the practical application of such a model through a case study. This model first applied the decision making trial and evaluation laboratory (DEMATEL) approach to deal with the interdependencies existing among the criteria of organization requires, and then integrated the DEMATEL, the analytic network process, and the zero-one goal programming method to select an optimal portfolio of SRI. Additionally, we used the sustainability balanced scorecard as a multi-criteria framework for SRI evaluation. This integrated model enables the management to obtain the fitting SRI portfolio and achieves the desired spiritual value.

Keywords: socially responsible investment (SRI); DEMATEL; analytic network process (ANP); zero-one goal programming (ZOGP); sustainability balanced scorecard (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

Downloads: (external link)
http://link.springer.com/10.1057/jors.2008.91 Abstract (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:pal:jorsoc:v:60:y:2009:i:10:d:10.1057_jors.2008.91

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/41274

DOI: 10.1057/jors.2008.91

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald and Jonathan Crook

More articles in Journal of the Operational Research Society from Palgrave Macmillan, The OR Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().