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Measuring and rewarding environmental performance: The Balanced Scorecard
Conference presentation   Open access

Measuring and rewarding environmental performance: The Balanced Scorecard

Monte Wynder
USC Research Conference, 2013 (Sunshine Coast, Australia, 01-Jul-2013–05-Jul-2013)
University of the Sunshine Coast
2013
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Abstract

Business and Management Balanced Scorecard (BSC) performance performance management profit seeking organisations
It is broadly accepted that measurement drives behaviour, particularly in profit-seeking organisations where the performance measurement system communicates the organisation's critical success factors. The most prevalent strategic performance measurement system is the balanced scorecard (BSC). For profit-seeking organisations, the emphasis of the BSC has been on the traditional perspectives of learning and growth, internal processes, customer, and financial. Organisations are increasingly recognising, however, the importance of managing their social and environmental impacts. This raises the important question, "How can social and environmental performance be incorporated into strategic performance measurement systems, such as the BSC?" There have been calls to include environmental performance as a separate, fifth perspective in the balanced scorecard (BSC). Empirical support for this option have been mixed, however. Experimental studies that have focussed on cognitive explanations suggest that an environmental perspective, alone, may be insufficient to convey the importance of environmental performance. In addition to cognitive influences, environmental responsibility is an emotive issue and personal beliefs are also likely to affect the importance that is ascribed to measures included in an additional, environmental perspective. Personal values and beliefs have not been considered in previous research. This study contributes to our understanding by demonstrating that concern for the environment, perception of ecological risk, and assessment of financial risk, interact with scorecard classification to determine the weighting placed on environmental performance measures.

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