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The association between the balanced scorecard perspectives and corporate sustainability within a sustainability balanced scorecard framework
Dissertation   Open access

The association between the balanced scorecard perspectives and corporate sustainability within a sustainability balanced scorecard framework

Kirsten Rae
University of the Sunshine Coast, Queensland
Doctor of Philosophy, University of the Sunshine Coast
2011
DOI:
https://doi.org/10.25907/00184
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Abstract

balanced scorecard corporate social responsibility corporate sustainability customer empowerment environmental financial human capital human resource management internal process organisational commitment Sustainability Balanced Scorecard
Corporate sustainability is a business approach currently being adopted by organisations in industry and government that requires management to consider not only economic needs of shareholders, but also environmental and social needs of other stakeholders. It has been argued that the adoption of the corporate sustainability business approach is the opportunity for businesses to improve profitability, competitiveness, and market share without compromising resources for future generations (Wilson, 2003). The present study examines corporate sustainability performance outcomes within the balanced scorecard framework. In particular, the study seeks to understand how the three lower level balanced scorecard perspectives may contribute to organisations achieving corporate sustainability outcomes. Corporate sustainability involves three main outcomes: performance on economic (financial), environmental and social issues (Carroll, 1991; Figge, Hahn, Schalteffer and Wagner, 2002). The theoretical model developed in Kaplan and Norton's (2004a) balanced scorecard argues for an indirect relationship between learning and growth and financial performance. Kaplan and Norton suggest that the relationship between learning and growth and financial performance is sequentially mediated firstly by the internal process and secondly, by the customer perspective; and that there may also be a direct association between the internal process and financial performance. Prior studies have produced mixed and inconclusive results because they have examined either the indirect association between the balanced scorecard perspectives and financial performance or the direct association between the internal process and financial performance.

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