Implementing Sustainability Strategies through Balanced Scorecard

This essay discusses the implementation of sustainability strategies through balanced scorecard. It explains the three opportunities for organizations to integrate sustainability into their scorecard and the benefits of doing so. The essay also highlights the importance of communicating sustainability efforts to the public and future generations. The subject is accounting and the document type is an essay.

Accounting
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
Reference....................................................................................................................................8

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Introduction
An organization that covers all the aspects regarding social, environment and
economic in a report is termed as sustainability reporting. This reporting is being o trend as a
voluntary reporting since last twenty years. Now a days all the organization in developing as
well as developed countries are publishing their voluntary reports. The scarcities that is seen
in the market system is impacted on the market prices. Though social and environment
factors are equally important element in an organization put the effect of its on economic
transaction is of one-fourth size. The skills as well as awareness regarding environment and
social is on the first place of priority list of the organization. Since many organization has
faced problems regarding environment and social issues due to improper management. Many
studies were conducted on the empirical test that refer to the correlation but not to the
connection among environmental as well as social measures along with financial success of
firm.

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Discussion
Balanced score card was developed as a well structure tool to assess the measurement
as well as management. Through this approach the related demand of expectations of
investors is evaluated and gives the best policies to meet the expectations of the investors.
The balanced score card is a blend of both fiscal as well as non- fiscal measurement system.
The main areas are consumer, fiscal, growth as well as internal learning process in business
for framing of work structure. The balanced scorecard has established to be unique of the
additional continuing business administration thoughts of the previous twenty years.
Strategic Management Maturity Model has been developed by the institute of balance
scorecard so that it can evaluate the performance of management as well as measurement. At
individual extreme, dimension-based stable scorecards are simple instrument panel of
performance procedures gathered into groupings that are of attention chiefly to an
administration’s administrators as well as managers. Size-centred scorecards nearly
continuously report on working presentation events, and proposal little planned vision into
the method a group generates worth for its clienteles and additional investors. Maximum
sustainability strategies, counting GRI intelligences, decrease into this group (Kang et al.,
2015).

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Strategic Objectives are the structure slabs of planned subjects that help plan
actionable for workers. Purposes are communicated as nonstop development actions that are
exclusive to all viewpoint and are subordinate in planned elevation than the subjects.
Strategic goals are connected together to plan a strategy map, along with the strategy chart
displays visually how goals effort can be composed in a combined, cause and effect the plan
to achieve the strategic results associated with each strategic subject.
Figure1: Sustainability Map
(Source: Kang et al., 2015).
Through creating a robust attention on sustainability in corporate tradition,
communicating the employees as well the public in which the corporate prevails to deliver
enough eco-friendly as well efficient goods, follow regulations in a more effective manner so
that the impact of the corporate life cycle operations can be reduced. The corporate shall
build a new technology regarding information that as the capacity to track the adverse effect

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efficiently. The corporates shall focus on more of producing the product that could be
efficient for environment. That would help in generating more revenue to the company. If the
corporates reduces impacts of life cycle this would help in reduction on the direct cost on
savings on water, fuel, electricity along with the disposal of waste. This would altogether
help in increasing revenue, reducing risks as well as cost to uplift profitability (Reefke&
Trocchi, 2013).
Organizations have three opportunities to implement the strategies of balance score
card. Firstly, to integrate the social as well as environment aspects in the existing standards.
Environment including social aspect if becomes the integrated, this would automatically
integrate the scorecard. An additional measurement added to the financial group would
generate more in the sustainability in the group for saving the cost incurred in energy,
recycling the revenues, cost incurred due to disposal including the environment dollars.
Secondly, after integration creating an additional perspective regarding social as well as
environment aspect. This was due to reflect the purpose of non-market perspectives so that
they can be integrated as per the relevant aspects of environment and social. This addition in
the score card would be the easiest approach for those organization who wants to be more
focus on their corporate values. Thirdly, to formulate a specialized scorecard for environment
as well as social. Resulting environmental or else social scorecard cannot be established
equivalent to the predictable scorecard. This scorecard is not an autonomous substitute for
incorporation, but merely a delay towards the two alternatives conversed above. The aim,
behind the reason businesses founds a distinct balanced scorecard designed for sustainability,
as because of the CSR plan or the development to wards sustaining is being marked as the
core policies so that a competitive advantage could be created. Sustainable perspective
implemented in Balance Score Card model should ensure that the strategy of company is in
connection with environmental, social and economic needs of the next generations. The

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integration procedure of the sustainability perspective metrics offers a possibility for
organizations to translate sustainability visions and strategies into action plans.
The procedure of generating new perspective and combining it in existing Balance
Scorecard must obligatory lead to an addition of environment as well as social administration
into strategy. The integrations of sustainability of social as well as environment shall be
relevant as per their strategy. By incorporating sustainability procedures into commercial
practices as well as by clearly connecting an organization’s modest policy to its green results,
the Balance Scorecard explains the association among sustainability conclusions of viability
stockholder interests (Zavodna, 2013)

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Conclusions
All the corporations adopts the balanced scorecard so as to implement their corporate
strategies. The balanced score card is used to successfully implement the strategies of
sustainability in order to relate the sustainability objective of the corporate maintaining the
actions as well the outcomes. The result of improved sustainability outcomes in lower cost
incurred in operational, improving productivity, management and satisfaction of employees.
The successful implementation of the strategies results in improving the image, reputation,
opportunities in the market and investors relationship. The voluntary disclosure theory, it
demands that establishments accepting BSC composed with gathering sustainability data
consume additional inducement to deliver public disclosure to display their deviation. The
essay recapitulates preceding results and presents three opportunities of application
sustainability part into Balance Score Card. It is up each business, which pointers would be
used for computing sustainability. The paper proposes numerous pointers,that could be
integrated in every sustainable area. The foremost impression for companies is in
announcement around the position of such measurement and location. It clarifies in part, how
procedure of sustainability mechanism and anything is desirable to do in instruction to start
such way. This perception is desirable not individual for group itself, but also for upcoming
generations and the general public.

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Reference
Bhattacharya, A., Mohapatra, P., Kumar, V., Dey, P. K., Brady, M., Tiwari, M. K., &
Nudurupati, S. S. (2014). Green supply chain performance measurement using fuzzy
ANP-based balanced scorecard: a collaborative decision-making
approach. Production Planning & Control, 25(8), 698-714.
Kang, J. S., Chiang, C. F., Huangthanapan, K., & Downing, S. (2015). Corporate social
responsibility and sustainability balanced scorecard: The case study of family-owned
hotels. International Journal of Hospitality Management, 48, 124-134.
Rabbani, A., Zamani, M., Yazdani-Chamzini, A., & Zavadskas, E. K. (2014). Proposing a
new integrated model based on sustainability balanced scorecard (SBSC) and MCDM
approaches by using linguistic variables for the performance evaluation of oil
producing companies. Expert Systems with Applications, 41(16), 7316-7327.
Reefke, H., & Trocchi, M. (2013). Balanced scorecard for sustainable supply chains: design
and development guidelines. International Journal of Productivity and Performance
Management, 62(8), 805-826.
Zhao, H., & Li, N. (2015). Evaluating the performance of thermal power enterprises using
sustainability balanced scorecard, fuzzy Delphic and hybrid multi-criteria decision
making approaches for sustainability. Journal of Cleaner Production, 108, 569-582.
Zavodna, L. S. (2013). Sustainability as a part of balanced scorecard.
Lueg, R., & Carvalho e Silva, A. (2013). When one size does not fit all: a literature review on
the modifications of the balanced scorecard.

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Organization with the
sustainable (also seen
as green) strategy have
three possibilities, how
to
implement sustainable
strategy in BSC. (Elijido-
Ten, 2011) First,
environmental and
social
aspects can be
integrated in the
existing four standard

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perspectives.
Environmental/social
aspects become then an
integral part of the
Scorecard and are
automatically integrated
in its
cause-effect links and
hierarchically orientated
towards the financial
perspective. For
example
an added dimension
within the financial
category can be the

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integration of
sustainability
measures, such as
energy costs, recycling
revenues, disposal
costs, and
environmental dollars.
Each organization can
choose what specifically
applies to its business
environment and ignore
any of the metrics that
do not apply