In this paper we present and illustrate using real-life data a framework for managing an investment portfolio in which the investment opportunities are described in terms of a set of attributes and part of this set is intended to capture the effects on society. Here we link with the emerging literature on SRI: socially responsible investment. Given the multi-attribute descriptions of the individual investment opportunities we show how these can be combined into portfolios with the same attributes at the portfolio level. Also we show how a manager can systematically be supported in the choice between different portfolio profiles. As part of the framework we use multi-criteria decision tools.

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ERIM Top-Core Articles
European Journal of Operational Research
Erasmus Research Institute of Management

Hallerbach, W., Ning, H., Soppe, A., & Spronk, J. (2004). A framework for managing a portfolio of socially responsible investments. In European Journal of Operational Research (Vol. 153, pp. 517–529). doi:10.1016/S0377-2217(03)00172-3