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CISEF: A composite index of social, environmental and financial performance

Author

Listed:
  • Chrysovalantis Gaganis
  • Fotios Pasiouras
  • Menelaos Tasiou
  • Constantin Zopounidis

    (Technical University of Crete [Chania], Audencia Business School)

Abstract

We propose a holistic evaluation framework that banks could adopt when screening corporate entities. The framework is based on the development of a composite indicator of social, environmental and financial performance. This integrated view of evaluation is conceptually aligned with ISO standards and empirical proposals of academics and market practitioners in defining inclusive performance. We complement those proposals with a methodological framework that permits incorporation of a plethora of viewpoints in the evaluation process, reflecting the expectations of the various stakeholders in the environment of a bank. We further enhance the evaluation process with analytics of a more detailed hierarchical view of performance, fine-tuning of the evaluation process, and provide implications and suggestions to the senior executive team of a bank’s clients.
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Suggested Citation

  • Chrysovalantis Gaganis & Fotios Pasiouras & Menelaos Tasiou & Constantin Zopounidis, 2021. "CISEF: A composite index of social, environmental and financial performance," Post-Print hal-03113006, HAL.
  • Handle: RePEc:hal:journl:hal-03113006
    DOI: 10.1016/j.ejor.2020.09.035
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