Resource title

Environment and socio-related balanced scorecard: exploration of critical issues

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Companies have historically preferred financial indicators to design and monitor their strategies. These indicators tend to have a retrospective character, giving little insight to managers on where they should take corrective action. The Balanced Scorecard (BSC) approach was developed in the early 1990s to address this problem. It provides a framework for managers to establish causal relationships between sets of qualitative indicators and the financial bottom line. More recently, the use of the BSC has been proposed to facilitate the management of environmental and social issues by firms. This gives managers the opportunity to integrate environmental and social practices with strategic objectives. This paper raises some critical issues concerning the traditional use of the BSC. These issues are then used to expand the current debate surrounding the new application of the tool in solving the problem of integration. Such an application raises both conceptual and methodological controversies, which are explored in this paper. Furthermore the paper identifies some key issues to be addressed by managers, and postulates some critical areas for the design of future empirical research.

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Resource language

en

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application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2002/2002-47.pdf

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Copyright INSEAD. All rights reserved