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It is well-reported that financial and investment sectors of the economy have grown in recent years, but also that problems of corruption, both institutional and venal, are present. Within the sector, financial auditors and investment consultants have been entrusted to work with and for those for whom financial sector stability and adequate financial returns are crucial. However, these two professions have too often served as handmaidens of corruption. This chapter reviews the history of financial auditing and investment consulting and outlines areas in which corruption manifests. It argues for an end to corruption and it asserts that the two professions could and should be the core of an uncorrupted robust system of financial practice and regulation. Such an arrangement could safeguard a world in which investment business practices are sustainable, honest, and truly productive.

This chapter describes a number of the ethical, political, and sustainability implications inherent in the investment process; clarifies when and to what extent these implications can manifest themselves; and examines the circumstances under which trustees might wish to consider the relation these implications to the management of their assets.

The arguments made in the chapter are theoretical and based on analyses of historical concepts of fiduciary duty and investment management.

The chapter concludes that in seeking to achieve their primary tasks of acting in beneficiaries’ interests and preserving assets and income, trustees may wish to consider the ethical, political, and sustainability implications of their investment decisions in the light of broadly accepted norms or scientific consensus. If trustees choose to incorporate these considerations, their decisions should be commensurate with the levels of concern raised by these issues, be potentially effective, not impair financial goals, and not require excessive expenditure of resources.

The conclusions of the chapter imply that trustees acting on beneficiaries’ behalf may wish to assess the broad-based, value-creation potential of their investment decisions along with the potential of these decisions to impact portfolio performance relative to asset-specific benchmarks. Considerations of value creation can be in beneficiaries’ interests to the extent that they contribute to strong economies, safe and livable societies, and the preservation or enhancement of natural resources. Additional research is needed to elaborate on how consideration of these types of value creation affects asset allocation and specific security selection, along with its impacts on short-term and long-term financial returns.

This chapter reflects on the role of ethical, political, and sustainability (EPS) concerns in investment processes. Specifically it considers why, when, and how EPS concerns might be considered by trustees.

People donate to charities with the aim of improving society. Yet, many charities fail to use donations efficiently or have ineffective interventions. The authors explore the strategic operational priorities and processes that enable charities to efficiently implement their interventions and have a positive impact on society.

The authors first review the literature on charities to gain a deeper understanding of the current state of knowledge on charity operations. The authors then employ the lens of paradox theory and perform a qualitative investigation of six case studies to explore various aspects of the operations of charities that are known for being cost-effective.

The authors reveal how the strategic operational decisions of charities, as well as the processes they implement, help them resolve the tensions arising from the cost-effectiveness paradox. The authors show that cost-effective charities make strategic operational decisions that help maintain two diverging priorities: prioritizing the status quo and prioritizing change in how they deliver value. Another set of strategic decisions helps balance these two diverging priorities. The authors then show how these charities create and then maintain cost-effective operations.

The authors address recent calls for research on non-profit organizations in the field of operations management. To authors’ knowledge, it is the first in-depth study of exemplary charity operations. The results can be used by charity executives as a benchmarking tool when they develop and implement their charitable interventions and by government agencies and potential donors when they select charities for their donations. Finally, the results should have implications for other organizations trying to have a positive societal impact.