A Holistic Conception of Sustainable Banking: Adding Value With Fuzzy Cognitive Mapping

Carlucci, Daniela; Ferreira, Fernando; Schiuma, Giovanni; Jalali, Marjan; António, Nelson

doi:10.3846/20294913.2016.1266412

Cited by 29 publications

(21 citation statements)

References 54 publications

(82 reference statements)

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“…Cognitive maps, based on expert methods, can be obtained in four ways: (1) from questionnaires; (2) by extraction from written text; (3) by drawing from data that show causal relationships; (4) through interviews with people who draw them directly [131]. The theoretical course of the cognitive map determination procedure is described in the literature.…”

Section: A Cognitive Map As a Tool For Designing A Sustainable Financmentioning

confidence: 99%

How to Design More Sustainable Financial Systems: The Roles of Environmental, Social, and Governance Factors in the Decision-Making Process

et al. 2019

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A literature review showed that finance is a driver of sustainability. However, to achieve sustainability through finance, it is necessary to rebuild and adapt the financial system to the specifics of sustainable development. Modern financial systems can be described as one-dimensional, focusing on ensuring the economic security of transactions. Meanwhile, the growing role of risk related to non-financial factors means that the factors referred to as ESG (environmental, social, governance) become the main source threatening the stability of financial systems. Adaptation activities toward the design of so-called three-dimensional financial systems rely on incorporating ESG risk into the financial decisions of the financial institutions that make up the financial system. This is found, among other factors, in the risk assessment methodology. The general goal of the paper is to investigate which ESG criteria are incorporated into the decision-making process of financial institutions and to verify the level of sustainability of financial systems in selected OECD (Organization for Economic Cooperation and Development) countries. The main research hypothesis assumes that incorporating ESG factors into the decision-making process of financial institutions makes financial systems more sustainable. A two-stage research procedure was used to achieve the research goal. In the first stage, to determine the ESG factors that affect the level of sustainability of financial systems and identify dependencies between ESG factors incorporated by financial institutions into the decision-making process, a fuzzy cognitive map (FCM) was used. The collective map elaborating on the basis of the opinions of experts participating in the study was built using the software FCMapper_bugfix_27.1.2016. In the second stage, based on multiple-criteria decision analysis (MCDA) using the PROMETHEE method (Preference Ranking Organization Method of Enrichment Evaluation), 23 OECD countries that respect the Equator Principles were ranked according to seven groups of criteria defined for financial system assessment (financial depth, development, vulnerability, soundness, fragility, stability, and sustainability), based on a literature review. The ranking confirmed the strong position of Scandinavian countries for assuring best sustainability practices in financial institutions and in the economy. The added value of this paper can be considered at two levels: theoretical and empirical. From the theoretical point of view, it should be noted that it is the first of this kind of analysis which prioritizes ESG factors in financial decisions and ranks financial systems according to fulfilling sustainability criteria. The original empirical approach based on the two-stage research procedure provided analysis of 62 factors, of which 21 represented the environmental scope, 25 the social scope, and 16 the governance scope, which is the main advantage of the empirical study presented in the paper.

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Section: A Cognitive Map As a Tool For Designing A Sustainable Financmentioning

confidence: 99%

How to Design More Sustainable Financial Systems: The Roles of Environmental, Social, and Governance Factors in the Decision-Making Process

et al. 2019

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“…Integrating sustainability into banking activity is an increasingly necessary but extremely challenging issue facing financial institutions [14]. This integration has essentially taken two forms: (i) socially and environmentally responsible initiatives (e.g., support for cultural events, charitable donations, recycling programmes and improvements in energy efficiency); and (ii) integration of environmental and social considerations into product design, mission and business strategies (e.g., the integration of environmental criteria into investment and lending strategies) [15].…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainability Performance. A Comparative Analysis in the Polish Banking Sector

Korzeb

Samaniego‐Medina

2019

Sustainability

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This article analyses the Polish banking sector’s involvement with sustainable development through a multidimensional evaluation applying the technique for order preference by similarity ideal solution (TOPSIS) method with different weight vectors. Our results highlight numerous shortcomings in the sustainability performance of commercial banking activities. In fact, there was backsliding during the analysed period (2015–2017), which suggests that supporting sustainability performance was not one of the priorities of the Polish banking sector. However, we found a dichotomy between national and foreign banks. The government-owned banks and national banks showed greater commitment to this issue than did the banks with foreign capital. This finding suggests that banks with foreign capital were not fully interested in sponsoring activities aimed at sustainable development.

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“…After some iterations, this causal propagation results in three possible system behaviors: (1) an equilibrium point; (2) cyclic behavior; or (3) chaotic behavior (Salmeron, 2012). With this feature of FCMs, decision makers can formulate "what-if " questions, thus facilitating a better understanding of the decision problem and more consistent decisions (Yaman & Polat, 2009;Carlucci, Ferreira, Schiuma, Jalali, & António, 2018).…”

Section: Cognitive Maps and Fcmsmentioning

confidence: 99%

Analyzing the Determinants of E-Commerce in Small and Medium-Sized Enterprises: A Cognition-Driven Framework

Barroso

Ferreira

Meidutė‐Kavaliauskienė

et al. 2019

Technological and Economic Development of Economy

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The increasing use of information technology in enterprises’ daily operations has led to multiple innovative ways to run a business, including electronic commerce (hereafter, e-commerce). However, firms with fewer resources, such as small and medium-sized enterprises (SMEs), are more reluctant to use electronic channels during transactions. This aversion to contemporary business models is a result of these companies’ lack of knowledge and capabilities regarding e-commerce. To improve their businesses, SMEs’ managers and decision makers could benefit from a methodological framework that fosters a deeper understanding of the determinants of e-commerce. This study sought to explore the use of fuzzy cognitive mapping to address this need. The results are grounded in the knowledge and experience of a panel of experts in e-commerce. The fuzzy cognitive map (FCM) developed shows that entrepreneur profile, market, operational management, marketing and promotions, website and digital platform, and products present the highest centrality indices as determinants of SME e-commerce. The findings offer a better understanding of the cause-and-effect relationships between these determinants. The advantages, limitations, and shortcomings of our constructivist proposal are also discussed.

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A Holistic Conception of Sustainable Banking: Adding Value With Fuzzy Cognitive Mapping

Cited by 29 publications

References 54 publications

How to Design More Sustainable Financial Systems: The Roles of Environmental, Social, and Governance Factors in the Decision-Making Process

How to Design More Sustainable Financial Systems: The Roles of Environmental, Social, and Governance Factors in the Decision-Making Process

Sustainability Performance. A Comparative Analysis in the Polish Banking Sector

Analyzing the Determinants of E-Commerce in Small and Medium-Sized Enterprises: A Cognition-Driven Framework

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