Abstract
In recent years the awareness of social, environmental and governance issues associated with investments have drawn relevant interest in the investment industry. Investors are more careful in considering investments that comply with their ethical and moral values, as well as with social impact. Hence, the ethical and social responsibility of investments (SRI) is becoming more popular in the academic literature due to the fact that socially responsible investment provide profitability and social commitment together. In this contribution we discuss the main issues that arise when integrating socially responsible criteria into a financial decision problem.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Ballestero, E., Bravo, M., Perez-Gladish, B., Arenas-Parra, M., Pla-Santamaria, D.: Socially responsible investment: a multicreiteria approach to portfolio selection combining ethical and financial objectives. Eur. J. Oper. Res. 216, 487–494 (2012)
Bauer, R., Koedijk, K., Otten, R.: International evidence on ethical mutual fund performance and investment style. J. Bank. Financ. 29, 1761–1767 (2005)
Bello, Z.: Socially responsible investing in portfolio diversification. J. Financ. Res. 28, 41–57 (2005)
Bilbao-Terol, A., Arenas-Parra, M., Canal-Fernández. V.: Selection of socially responsible portfolios using goal programming and fuzzy technology. Inf. Sci. 189, 110–125 (2012)
Capelle-Blancard, G., Monjon, S.: Trends in the literature on socially responsible investment: looking for the keys under the Lamppost. Bus. Ethics. 21(3), 239–250 (2011)
Doumpos, M., Zopounidis, C.: Multi-criteria classification methods in financial and banking decisions. Int. Trans. Oper. Res. 9, 567–581 (2002)
Dupre, D., Girerd-Potin, I., Kassoua, R.: Adding an ethical dimension to portfolio management. In: EFMA 2003 Helsinki Meetings (2003)
Gasser, S., Rammerstorfer, M., Weinmayer, K.: Markowitz revisited: social portfolio engineering. Eur. J. Oper. Res. 258, 1181–1190 (2016)
Hallerback, W., Ning, H., Soppe, A., Spronk, J.: A framework for managing a portfolio of socially responsible investments. Eur. J. Oper. Res. 153, 517–529 (2004)
Hirschberger, M., Steuer, R., Utz, S., Wimmer, M., Qi, Y.: Computing the nondominated surface for a tri-criterion portfolio selection. Oper. Res. 611, 69–183 (2013)
Ito, Y., Managi, S., Matsuda, A.: Performances of socially responsible investment and environmentally friendly funds. J. Oper. Res. Soc. 64, 1583–1594 (2013)
Kempf, A., Osthoff, P.: The effect of socially responsible investing on portfolio performance. Eur. Financ. Manag. 13, 908–922 (2004)
Renneboog, L., Ter Horst, J., Zhang, C.: Socially responsible investment: institutional aspects, performance, and investor behaviour. J. Bank. Financ. 32(9), 1723–1742 (2008)
Sherwood, M.W., Pollard, J.: The risk-adjusted return potential of integrating ESG strategies into emerging market equities. J. Sustain. Financ. Invest. 8, 26–44 (2018)
Statman, M., Glushkov, D.: Classifying and measuring the performance of socially responsible mutual funds. J. Portfol. Manage. 42(2), 140–151 (2016)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2018 Springer International Publishing AG, part of Springer Nature
About this chapter
Cite this chapter
Barro, D. (2018). Integration of Non-financial Criteria in Equity Investment. In: Corazza, M., Durbán, M., Grané, A., Perna, C., Sibillo, M. (eds) Mathematical and Statistical Methods for Actuarial Sciences and Finance. Springer, Cham. https://doi.org/10.1007/978-3-319-89824-7_17
Download citation
DOI: https://doi.org/10.1007/978-3-319-89824-7_17
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-89823-0
Online ISBN: 978-3-319-89824-7
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)