click on star to go back to Joseph Sarkis' HomepageCapital investment has traditionally been known to focus on getting the largest return in the shortest period of time. In many cases projects that have strong environmental (green) benefits may be neglected due to biases associated with traditional project appraisal approaches. In order to reduce the level of project rejections for projects which may benefit the greening of organizations, we introduce an innovative methodology, the financial appraisal profile (FAP) model, which seeks to address some of the issues and limitations posed by standard appraisal and evaluation approaches. By making the right decision in the first place and involving senior managers in the appraisal process, the organisation will be better placed to achieve project success and select the project that will contribute most to an organizational strategy. The adoption of a management team approach to investment appraisals will not only enhances the information base but will also result in greater managerial commitment to a project. We believe by adopting the FAP model, with the inclusion of an environmental assessment in the form the ‘environmental score index’, will focus top management on an increasingly important corporate issue.
Keywords: Capital Investment, Environment, Technology, Multiple Criteria
click on star to go back to Joseph Sarkis' Homepage