Integrating social and financial goals toward more balanced new technology decisions

Abstract

Many practitioners would agree that, in order to maximize long-term shareholder wealth, social costs should be incorporated into financial decisions. More than constant reminders, they need concrete methods by which to move beyond their traditional ways. This article presents a capital budgeting model that considers both social and financial dimensions of new technology decisions. The model, utilizing the multiple dimensional scaling procedure, allows decision makers to incorporate the uncertainties of costs from new technology borne by the firm and society. © 1992.