Corporate sustainability and stakeholder value trade‐offs in project selection through optimization modeling: Application of investment banking

Kudratova, Shamsiya; Huang, Xiaoxia; Kudratov, Khikmatullo; Qudratov, Shohrukh

doi:10.1002/csr.1846

Cited by 11 publications

(14 citation statements)

References 41 publications

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“…This work extends prior studies analyzing CS in the banking sector. This literature focuses on different areas, such as the role of banks in sustainable development (Coulson, 2009; Forcadell & Aracil, 2017b; Lundgren & Catasús, 2000; Raut, Cheikhrouhou, & Kharat, 2017), CS as a driver of bank performance (Aras, Tezcan, & Kutlu Furtuna, 2018; Gangi, Mustilli, & Varrone, 2018; García‐Sánchez & García‐Meca, 2017; Weber, 2012; Weber, Fenchel, & Scholz, 2008) and bank reputation (Dell'Atti et al, 2017; Forcadell & Aracil, 2017a; Pérez and Rodríguez, 2015), how institutional settings determine banks' sustainable policies (Gallego‐Álvarez & Pucheta‐Martínez, 2019), or banks' stakeholder management (Kudratova et al, 2019; Venturelli, Cosma, & Leopizzi, 2018). Against this backdrop, we complement existing research on sustainable banking by highlighting the complementarities between CS and digitalization in leveraging their individual outcomes with regard to boundaries and scope.…”

Section: Discussionmentioning

confidence: 99%

Using reputation for corporate sustainability to tackle banks digitalization challenges

2020

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The new landscape in the financial sector, characterized by fierce competition and the entrance of new technological players, has forced banks to speed up their digital transformation. However, for banks, digitalization entails challenges that can hinder the potential benefits and compromise their survival. In this context, we argue that the reputation generated by corporate sustainability (RCS) may offset these digitalization drawbacks. In particular, we find that the combination of RCS and digitalization facilitates in transforming the organizational nature of banks by simultaneously narrowing their boundaries and expanding their scope. We empirically confirm our hypotheses by analyzing a panel of 110 multinational banks from developed countries.

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Section: Discussionmentioning

confidence: 99%

Using reputation for corporate sustainability to tackle banks digitalization challenges

2020

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“…Sustainable business models examine a spectrum of stakeholders' interests, including environmental and social issues [31]. The concept of corporate sustainability gives the potential to be more embracing in terms of the company benefits, as well as the social and environmental implications for stakeholders [32].…”

Section: The Background Of the Researchmentioning

confidence: 99%

Decision Tree and AHP Methods Application for Projects Assessment: A Case Study

et al. 2021

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This research is dedicated to the modelling of decision process occurring during the implementation of construction projects. Recent studies generally do not assess the robustness of the decisions regarding the possible changes during the construction project implementation. However, such an assessment might increase the reliability of the decision-making process. We addressed this gap through a new model that combines the decision-making process modelling with the AHP method and includes the analysis of model stability concerning stakeholders’ behaviour. We used the Analytic Hierarchy Process (AHP) and Decision tree methods to model the decision-making process. The proposed model was validated on a case study of multiple construction projects. The assessment was performed from individual investor’s and independent expert’s perspectives. The criteria for the assessment were selected according to the principles of sustainability. We performed the sensitivity analysis, making it possible to assess the possible changes of the decisions depending on the potential patterns of the decision-makers’ behaviour. The results of the study show that, sometimes, small fluctuations in the project factors affect the project selection indicating the possible lack of the robustness of the project decisions.

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“…Kudratova et al developed a corporate sustainability driver model by integrating sustainability cost measurements into the traditional selection of projects. The authors found that sustainability cost estimation in traditional project selection methods produces positive returns on investment and produce positive trade-off results for both the environment and sustainability [17]. They also proposed a sustainability optimization model that considered sustainability cost and reinvestment strategy.…”

Section: Sustainability Costmentioning

confidence: 99%

Identifying the Factors Affecting Sustainability Cost Toward Optimization of the Project Selection Process

Alfreahat¹,

Sebestyén²

2020

Proceedings of the Creative Construction E-Conference 2020

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The dialogue that competes with politics and societal issues is becoming about sustainability. Sustainability has been drawing more attention now after many years of focusing solely on technology and development and neglecting the green aspect significantly, due to the growing resource constraints and the balanced requirement of environmental, economic, and social objectives. It is becoming increasingly important for all companies across all industries. The adoption of sustainability drives stakeholders to sustain their business success in the long-term. Therefore, they have to consider more factors than profit or loss when building their strategies and change their policies in the decision-making process to prevent environmental damages. Accordingly, decisions should be dictated according to the principle of sustainability, and the impact of these decisions should be planned for years and decades. According to the researchers and experts, the adoption of sustainability is facing two major obstacles, which are the increased cost of capital or perceived cost associated with sustainability and the lack of stakeholder's demand on sustainable projects due to the wrong perception that sustainability causes cost increase. Therefore, they can take sustainability costs as a primary concern in project selection. In this regard, the purpose of this study is to explore essential factors that have an impact on sustainability cost, which in turn, affects the project selection process, based on the theoretical backgrounds from the literature. To take the sustainability costs would help us to build a cost model, including the sustainability cost of the projects and their returns, which helps stakeholders to select the optimal sustainable project from several candidate projects in the project selection decision-making process. Thus, it can lead to an increase in the potential for creating win-win situations contributing to both stakeholders and sustainability value.

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Corporate sustainability and stakeholder value trade‐offs in project selection through optimization modeling: Application of investment banking

Cited by 11 publications

References 41 publications

Using reputation for corporate sustainability to tackle banks digitalization challenges

Using reputation for corporate sustainability to tackle banks digitalization challenges

Decision Tree and AHP Methods Application for Projects Assessment: A Case Study

Identifying the Factors Affecting Sustainability Cost Toward Optimization of the Project Selection Process

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