![]() ![]() developed a model to deal with relationships between sustainable development and project management. Labuschagne and Brent outlined three goals for sustainable development (namely social equity, economic efficiency, and environmental performance) in various project life cycle management problems. In some of the first publications on sustainability and project management, sustainable development was linked to project life cycle management in the manufacturing industry. Most works focus on sustainable project management methodologies. ![]() The existing project management standards do not give adequate attention to sustainability issues or fail to provide project managers with the necessary tools to integrate sustainability into project management and operation. However, the issue of the integration of sustainability considerations into project management has not been explored sufficiently. Moreover, the model allows quantifying the impact of the integration of sustainability into financial resource allocation on the return of a portfolio. The use of the model would not only help organisations to manage risk and achieve higher return but would also allow carrying out sustainable projects, thereby promoting greater environmental responsibility and giving more consideration to the wellbeing of future generations. The proposed sustainability-oriented financial resource allocation model could be used in allocating financial resources in any type of business. The practicability of the model was tested by an empirical study in a selected construction company. The model was developed by applying multi-criteria decision-making methods. Therefore, the aim of this article is to develop a sustainability-oriented model of financial resource allocation in a project portfolio by integrating a composite sustainability index of a project into Markowitz’s classical risk-return scheme (mean-variance model). Existing project portfolio selection and resource allocation methods and models do not consider sustainability. As a result of the sole purpose (risk-return), it offers only a partial solution for a sustainable organization. The reality, however, shows that, when selecting projects to a portfolio and allocating resources in the portfolio, an increasing number of organizations take into account other aspects as well. Modern portfolio theory attempts to maximize the expected return of a portfolio for a given level of portfolio risk, or equivalently minimize risk for a given level of expected return. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |