DOCSLIB.ORG

The Balanced Scorecard Beyond Reports and Rankings

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Balanced Scorecard Beyond Reports and Rankings The Balanced Scorecard Beyond Reports and Rankings More commonly used in the commercial sector, this approach to strategic assessment can be adapted to higher education. by Alice C. Stewart and Julie Carpenter-Hubin ince the 1990s, accountability in higher education has become a challenging issue for higher education. SIncreasingly, institutions of higher learning have been required to provide performance indicators—empirical evi- dence of their value—to state, alumni, prospective student, and other external stakeholders. State commissions of higher education and boards of regents have, in numerous states, developed “report cards” that grade colleges and universities according to their level of performance in a variety of cate- Alice C. Stewart is director of strategic gories. Surveys in the popular press and on the Internet rank analysis and planning and assistant pro- institutions according to their retention and graduation rates, fessor of strategic management at The resources, academic reputation, and more. Ohio State University. Her work has been Though substantial energy and effort have been expend- presented at the National Academy of ed to collect, organize, and present performance information, Management and the Strategic Manage- few would argue that the emphasis on the various report ment Society and has been published in cards and surveys has dramatically changed the operational such outlets as the Journal of Business performance of most major universities. Commenting on the Venturing and Advances in International Comparative Management. inadequacy of performance indicators for higher education, H.R. Kells (1990) warns of the following: Julie Carpenter-Hubin is strategic initia- tives project manager at The Ohio State [This] notion to reduce complexity is acceptable if University, where she received her bach- such reduction does not remove or reduce our ability elor’s. She is currently pursuing a mas- to judge true worth. The lists of performance ter’s in public administration. Her research indicators presented in study after study make little interests include strategic decision mak- ing and university organization. or no reference to the intentions (goals) of the organ- ization to be described and virtually no reference to Planning for Higher Education 37 Alice C. Stewart and Julie Carpenter-Hubin programme quality with respect to the specific formance. A quick review of higher education report cards results of instruction and research. (p. 261–62) used to assess public colleges and universities in various states shows a principal focus on undergraduate education. With important stakes such as increasing financial This focus is consistent with the interest of many consumer resources, encouraging high-quality student applicants, and groups and governing bodies associated with higher educa- attracting faculty dependent upon how they “measure up,” tion. To present complex information in an easy-to-read and universities are rightly concerned with how best to present attractive format, external indicators are often presented in themselves. Institutions attempt to improve accountability the form of rankings or report cards. Furthermore, it is com- while dealing with the more difficult and complex issue of mon for external bodies to use a single set of indicators to how to improve university effectiveness. The assumption of measure many institutions across a wide range of missions. many externally derived accountability programs is that For colleges and universities affected by external assess- emphasis on one will result in the other. However, until per- ment, the management task is to learn the art of image man- formance indicators are linked to the drivers of institutional effec- Performance indicators can provide tiveness in a meaningful way, the desired improvements in service, substantive information for strategic productivity, and impact are unlikely to occur. The real test for decision making. institutions is to create meaning- ful systems for strategic organizational assessment and then agement (Wu and Petrshiuses 1987). Since many external use that information in internal policy and resource allocation stakeholders have resources (financial, student, and accredita- decisions. tion) that are of interest to the institution, understanding the Performance indicators can be powerful tools, at both the formulaic relationships between the performance numbers university and the college/department levels, for internal eval- and how they influence perception of success or failure is key. uation and strategic assessment. Though similarities exist Thus, the emphasis of the university is primarily on external between the indicators used for external reporting and inter- perception of success and manipulation of image and only nal assessment—indeed, many of the same data can be used secondarily on improved institutional effectiveness. This con- for both—the development of internal indicators requires clusion is based not on cynicism, but on the reality that the more attention to the contextual characteristics and opera- former is easier and more quickly influenced and changed tional goals of the university. Under these circumstances, per- than the latter. formance indicators can provide substantive information for To be useful internally, performance indicators must be strategic decision making. tied to the values and goals of the particular university and should emanate from the institution’s performance objectives. External Accountability Versus These objectives translate the broad goals of the institution Internal Assessment into specific research problems that can be studied and around which strategies for improvement can be developed. The differences between the use of performance indicators A different type of institutional stakeholder—university deci- for external accountability and internal assessment are clear sion makers (i.e., faculty, academic administrators, and (see table 1). Performance indicators developed for external nonacademic administrators)—uses performance indicators audiences are generally aimed at informing three types of developed for internal audiences. The internal audience repre- stakeholders: consumers (i.e., students and parents), govern- sents a very broad spectrum of perspectives and interests ing bodies (i.e., legislators and accrediting agencies), and with a wide range of opinions regarding what might be potential revenue providers (i.e., alumni, donors, and funding acceptable institutional outcomes. These internal audiences agencies). The external audiences are often limited in their tend to adopt multidimensional views of performance. Often, area of interest and have specific ideas of what might be issues are studied in great depth with information presented acceptable institutional outcomes. These external audiences in the form of long, complex faculty reports. At times, the tend to adopt incomplete and one-dimensional views of per- focus on the higher goals and values precludes specific action 38 Winter 2000–2001 The Balanced Scorecard: Beyond Reports and Rankings appropriate linkage between the values Table 1 and goals of the internal audience, the strategic tasks required, and the data Comparison of Externally and Internally Driven collection and analysis necessary is Assessment important for useful internal perform- Externally Driven Internally Driven ance assessment. Audience Consumers Faculty – Students The Balanced Scorecard – Parents Academic administrators In 1992, Robert S. Kaplan and David P. Governing bodies Norton introduced the balanced score- – Legislators Nonacademic card, a set of measures that allow for a – Accrediting administrators holistic, integrated view of business per- agencies formance. The scorecard was originally Revenue generators created to supplement “traditional finan- – Alumni cial measures with criteria that meas- – Foundations ured performance from three additional – Donors perspectives—those of customers, Concerns Undergraduate education Organizational agenda internal business processes, and learn- Image management Resource allocation ing and growth” (Kaplan and Norton priorities 1996, p. 75). By 1996, user companies had further developed it as a strategic Focus Influence choices of Influence political management system linking long-term relevant audience coalitions strategy to short-term targets. The Format Report cards Faculty committee development of the balanced scorecard Rankings or institutional method occurred because many busi- Indices reports ness organizations realized that focus on a one-dimensional measure of per- due to a lack of a supporting political coalition and/or criteria formance (such as return on investment by which to evaluate the plan. Though institutional effective- or increased profit) was inadequate. Too often, bad strategic ness and enhanced academic reputation are common goals, decisions were made in an effort to increase the bottom line there is often lack of consensus about how institutional at the expense of other organizational goals. The theory of the processes may actually have an impact on those goals. balanced scorecard suggested that rather than the focus, For college and university decision makers engaged in financial performance is the natural outcome of balancing internal assessment, the management task is to learn the art other important goals. These other organizational goals inter- and science of institutional strategic assessment. Since con- act to support excellent overall organizational performance. If sensus and
Load more

Recommended publications
  • A Balanced Scorecard for Measuring the Value Added by Innovation
    INNOVATION SCORECARD: A BALANCED SCORECARD FOR MEASURING THE VALUE ADDED BY INNOVATION Nelson Gama Instituto Superior Técnico, [email protected] Miguel Mira da Silva Instituto Superior Técnico, [email protected] José Ataíde Grupo Portucel Soporcel, [email protected] In the last few years, organizations were forced to innovate just to stay competitive. However, the value added by that innovation is rarely measured. At the same time, the Balanced Scorecard (BSC) became popular as a tool to measure business performance. Unfortunately, the traditional BSC is not appropriate to measure the value added by innovation. In this paper we propose an Innovation Scorecard based on innovation metrics and the traditional BSC in order to measure the value added by innovation and also guarantee the alignment with the organization strategic objectives. We are currently developing a pilot for a large industrial company that demonstrates how the proposal can be applied in practice. 1. INTRODUCTION Organizations currently operate in markets characterized by globalization, geopolitical instability, strong competition, ever smaller market segments, emergent technologies, substitute products, shorter product life cycles, and the bargain of consumer’s power. On the other hand, shareholders put an increasing pressure in reducing costs and optimizing the investments. There are two well-known approaches to increase profits and create a sustainable competitive advantage: a short-term one via operational cost reduction and a longer- term one by differentiation being innovative. Usually, especially in periods of economic recession, organizations follow the cost reduction approach even though the results typically disappear after two or three years (Kubinski, 2002).
    [Show full text]
  • CGMA TOOL – How to Develop a Strategy Map the Strategy Pyramid
    CGMA TOOL How to Develop a Strategy Map coNteNts Two of the world’s most prestigious accounting bodies, the AICPA and CIMA, have formed a joint venture to establish the Chartered Global Management Accountant (CGMA) designation to elevate the profession of management accounting. The designation recognises the most talented and committed management accountants with the discipline and skill to drive strong business performance. Introduction 2 The Strategy Pyramid 3 Step 1: Specify an Overriding Objective 5 Step 2: Choose the Value Proposition 6 Step 3: Choose the Financial Strategies 7 Step 4: Choosing the Customer Strategies 8 Step 5: Execute Through the Internal Perspective Strategies 9 Step 6: Plan the Learning and Growth Strategies 10 Validating and Cascading the Strategy Map 11 Conclusion 12 1 INTRodUctioN The vast majority of organisations have well-defined procedures for developing strategic plans. And for the most part, the result of their planning exercises are good, solid, strategies designed to move the entity forward and provide sustainable, even superior, returns. But there is often a major disconnect between the formulation and execution phases of strategy. The ability to cascade an organisation’s vision, mission and core strategies into actionable behaviours that achieve critical objectives continues to be a challenge for most organisations. As the saying goes, “a picture is worth a thousand words.” Strategy maps, pioneered by Balanced Scorecard founders Robert Kaplan and David Norton, allow organisations to describe and communicate their strategies concisely and succinctly and close the gap between formulation and successful implementation of strategy. Strategy maps describe how organisations create value by building on strategic themes such as “growth” or “productivity.” These themes determine what specific strategies organisations will adopt at their customer, process, and learning and growth levels.
    [Show full text]
  • Cascading the BSC Using the Nine Steps to Success™
    Cascading the BSC Using the Nine Steps to Success™ ™FrameworkCompanies The Balanced Scorecard Institute uses a proven, disciplined framework, Nine Steps to Success™, to systematically develop, implement, and sustain a strategic balanced (see Figure 1-1 below). Our consultants will work with staff and managers at each stage to ensure successful completion of each step and transfer of learning. Figure 1-1: Balanced Scorecard Institute Nine Steps to Success™ Framework Steps 1-6 result in an enterprise-level scorecard which aligns the organization around strategy, and shows how each employee’s work contributes to the shared vision of the future. Alignment (Step 8) means cascading enterprise-level strategy down into business and support unit scorecards, meaning the organizational level scorecard (the first Tier) is translated into business unit or support unit scorecards (the second Tier) and then later to team and individual scorecards (the third Tier). Cascading translates high-level strategy into lower-level objectives, measures, and operational details. Cascading is the key to organization alignment around strategy. Team and individual scorecards link day-to-day work with department goals and corporate vision. Cascading is the key to organization alignment around strategy. Performance measures are developed for all objectives at all organization levels. As the scorecard management system is cascaded down through the organization, objectives become more operational and tactical, as do the performance measures. Accountability follows the objectives and measures, as ownership is defined at each level. An emphasis on results and the strategies needed to produce results is communicated throughout the organization. 2000 Regency Parkway, Suite 425 . Cary, North Carolina 27518 USA .
    [Show full text]
  • BALANCED SCORECARD STEP-BY-STEP for GOVERNMENT and NONPROFIT AGENCIES Second Edition
    BALANCED SCORECARD STEP-BY-STEP FOR GOVERNMENT AND NONPROFIT AGENCIES Second Edition Paul R. Niven John Wiley & Sons, Inc. ffirs.indd iii 3/4/08 11:06:55 AM ffirs.indd ii 3/4/08 11:06:55 AM BALANCED SCORECARD STEP-BY-STEP FOR GOVERNMENT AND NONPROFIT AGENCIES Second Edition ffirs.indd i 3/4/08 11:06:55 AM ffirs.indd ii 3/4/08 11:06:55 AM BALANCED SCORECARD STEP-BY-STEP FOR GOVERNMENT AND NONPROFIT AGENCIES Second Edition Paul R. Niven John Wiley & Sons, Inc. ffirs.indd iii 3/4/08 11:06:55 AM This book is printed on acid-free paper. ϱ Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions.
    [Show full text]
  • Strategic Planning Using Balanced Scorecard an Experience by Al Al
    International Journal of Academic Research in Accounting, Finance and Management Sciences Vol. 9, No.4, October 2019, pp. 144–159 E-ISSN: 2225-8329, P-ISSN: 2308-0337 © 2019 HRMARS www.hrmars.com To cite this article: Khaled, M. H. B., Al-Oun, S. S. (2019). Strategic Planning Using Balanced Scorecard an Experience by Al Al-Bayt University, Jordan, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (4): 144 -159 http://dx.doi.org/10.6007/IJARAFMS/v9-i4/6763 (DOI: 10.6007/IJARAFMS/v9-i4/6763) Strategic Planning Using Balanced Scorecard an Experience by Al Al-Bayt University, Jordan Marie H. Bani Khaled1, Salem S. Al-Oun2 1,2Business Management Department, Faculty of Finance and Business Administration, Al Al-Bayt University, 1E-mail: [email protected], 2E-mail: [email protected] Abstract The aim of this study is to identify the reality of Balanced Scorecard (BSC) at Al Al-Bayt University. BSC of university performance deals with its major aspects such as goals, indicators, and initiatives necessary to achieve the objectives in quantitative measures. Findings of the study showed that there is a moderate realization by academic and administrative units at the university of the need to adopt BSC in strategic planning. Quality Assurance and Planning is the most administrative unit that applied BSC. These units aware of the capacity of BSC to maximize financial return and moral support as a result of the provision of educational services. The study recommended the need to adopt a BSC by all administrative units, especially those which are newly established, as well as, the assessment of deviation from the targeted standards.
    [Show full text]
  • Focusing Your Organization on Strategy—With the Balanced Score- Card, 2Nd Edition Putting the Balanced Scorecard to Work
    C O L L E C T I O N www.hbr.org Focusing Your Organization Your strategy’s on Strategy—with the brilliant—but can you execute it? Balanced Scorecard, 2nd Edition Included with this collection: 2 Putting the Balanced Scorecard to Work by Robert S. Kaplan and David P. Norton 19 Measuring the Strategic Readiness of Intangible Assets by Robert S. Kaplan and David P. Norton 35 Using the Balanced Scorecard as a Strategic Management System by Robert S. Kaplan and David P. Norton 49 Having Trouble with Your Strategy? Then Map It by Robert S. Kaplan and David P. Norton Product 5933 Collection Overview The Articles The Balanced Scorecard has transformed 3 Article Summary companies around the globe. This revolu- tionary performance management sys- 4 Putting the Balanced Scorecard to Work by Robert S. Kaplan and David P. Norton tem has been helping top executives set Your Balanced Scorecard provides a top-down description of your company’s strategy and corporate strategy and objectives—and your assumptions about the corporate objectives and measures needed to implement that translate them into a coherent set of mea- strategy. sures—since 1992. To begin building your scorecard, ask: “If we successfully implement our strategy, how will What makes the Balanced Scorecard so we look different to our shareholders and customers? How will our internal processes powerful? It transforms strategy into a change? What will happen to our ability to innovate and grow? What are each scorecard perspective’s critical success factors? What metrics will tell us whether we’re addressing continuous process owned by every em- those factors as planned?” ployee, not just top managers.
    [Show full text]
  • Application of the Balanced Scorecard in Higher Education Opportunities and Challenges
    Application of the Balanced Scorecard in Higher Education Opportunities and Challenges An evaluation of balance scorecard implementation at the College of St. Scholastica. by Cindy Brown Introduction In the 1990s a new way of evaluating performance improvement in the business industry was introduced. The balanced scorecard (BSC) emerged as a conceptual framework for organizations to use in translating their strategic objectives into a set of performance indicators. Rather than focusing on operational performance and the use of quantitative financial measures, the BSC approach links the organization’s strategy to measurable goals and objectives in four perspectives: financial, customer, internal process, and learning and growth (Niven 2003). The purpose of this article is to evaluate the use of the Cindy Brown, DNP, MPH, RD, RN is an BSC in the nonprofit sector, specifically at an institution of assistant professor in the School of Nursing higher education. Case studies in higher education and at the College of St. Scholastica in Duluth, personal perspectives are presented, and the opportunities Minnesota. Her professional expertise is in for and challenges of implementing the BSC framework in public health, nutrition, and chemical higher education are discussed. dependency. She also provides nursing services at a housing facility for residents Balanced Scorecard Principles with chronic alcoholism. She has an interest in performance improvement evaluation in higher education; this article is a culmination Achievement of equilibrium is at the core of the BSC of her review and application conducted as system. Balance must be attained among factors in three part of her graduate course work for her areas of performance measurement: financial and nonfinancial doctorate of nursing practice degree.
    [Show full text]
  • Pestle and Swot Analysis Example
    Pestle And Swot Analysis Example Ernest expands underarm? If vitreous or arthropodal Lawton usually impressed his mise theologized dishonourably or tousings possessively and larcenously, how carved is Neddy? Gamopetalous and rostral Odysseus parqueted some Pemba so restlessly! Strengths and weaknesses similar request a SWOT analysis but know more detail. You can curl in more good about SWOT and PESTLE analysis in my. What you need those that may vary depending on developments in policy or industry example. But an example, examples of all trends within society toward women within which are able to. The US is true example endorse a socially aware environment in wall the citizens. The pestel template in eastern europe with your next week! Why is Pestle analysis used? PEST and SWOT analysis Tools that presume the personnel of the market and the surrounding environment in depth tell a strategic. Use swot stands for avenues for a useful to boost to this is run a result of grab taxi sharing and swot and. Steeple Analysis L'Osteria in Aboca Ristorante. To its costs for regret in the Northstar pipes in early 2007 BP finds corrosion para. Feb 20 201 Explore Michelle Deighton's board Pestle and SWOT on Pinterest See more ideas about. SWOT Analysis Vs PEST Analysis and bounds to expose Them. PEST Analysis Variants PEST Analysis Example PEST vs SWOT Analysis. Although swot or phone, your way you should frame a vacuum. Get there are examples below shows a smart messages, technological advances protect companies operating environment in particular value to provide direction? PESTLE Analysis Factsheets CIPD.
    [Show full text]
  • Updating the Balanced Scorecard for Triple Bottom Line Strategies
    Updating the Balanced Scorecard for Triple Bottom Line Strategies Robert S. Kaplan David McMillan Working Paper 21-028 Updating the Balanced Scorecard for Triple Bottom Line Strategies Robert S. Kaplan Harvard Business School David McMillan Palladium Working Paper 21-028 Copyright © 2020 by Robert S. Kaplan and David McMillan. Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Funding for this research was provided in part by Harvard Business School. The authors acknowledge the assistance and support from Palladium colleagues: Joan Cabezas, Amanda Fernandez, Elizabeth Godo, Elena Gomez, Jee-Ho Kang, Aldo Labaki, Christina Shim, Eduardo Tugendhat, and Diego Vergara. Updating the Balanced Scorecard for Triple Bottom Line Strategies Robert S. Kaplan1 and David McMillan2 Abstract Many companies are now attempting to achieve triple bottom line performance on financial, environmental and societal metrics. Successful strategies for such performance, however, generally require new relationships among multiple players in multiple sectors across a company’s supply chain for products and talent. The Balanced Scorecard (BSC), originally developed to describe and implement a single organization’s strategy, needs to be adapted to reflect such multi-stakeholder strategies for triple bottom line performance. The Financial perspective is replaced by “Outcomes” to encompass financial, environmental, and societal metrics; Customer becomes “Stakeholders” to reflect the interests of the multiple participants in the ecosystem; and Learning & Growth becomes “Enablers” to include the new capabilities for collaboration and alignment.
    [Show full text]
  • Strategic Analysis Tools
    Topic Gateway Series Strategic Analysis Tools Strategic Analysis Tools Topic Gateway Series No. 34 1 Prepared by Jim Downey and Technical Information Service October 2007 Topic Gateway Series Strategic Analysis Tools About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical application. Finally they signpost some further resources for detailed understanding and research. Topic Gateways are available electronically to CIMA Members only in the CPD Centre on the CIMA website, along with a number of electronic resources. About the Technical Information Service CIMA supports its members and students with its Technical Information Service (TIS) for their work and CPD needs. Our information specialists and accounting specialists work closely together to identify or create authoritative resources to help members resolve their work related information needs. Additionally, our accounting specialists can help CIMA members and students with the interpretation of guidance on financial reporting, financial management and performance management, as defined in the CIMA Official Terminology 2005 edition. CIMA members and students should sign into My CIMA to access these services and resources. The Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 7663 5441 F. +44 (0)20 7663 5442 E. [email protected] www.cimaglobal.com 2 Topic Gateway Series Strategic
    [Show full text]
  • Conceptual Foundations of the Balanced Scorecard Working Paper
    Conceptual Foundations of the Balanced Scorecard Robert S. Kaplan Working Paper 10-074 Copyright © 2010 by Robert S. Kaplan Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. Conceptual Foundations of the Balanced Scorecard1 Robert S. Kaplan Harvard Business School, Harvard University 1 Paper originally prepared for C. Chapman, A. Hopwood, and M. Shields (eds.), Handbook of Management Accounting Research: Volume 3 (Elsevier, 2009). 1 Conceptual Foundations of the Balanced Scorecard Abstract David Norton and I introduced the Balanced Scorecard in a 1992 Harvard Business Review article (Kaplan & Norton, 1992). The article was based on a multi-company research project to study performance measurement in companies whose intangible assets played a central role in value creation (Nolan Norton Institute, 1991). Norton and I believed that if companies were to improve the management of their intangible assets, they had to integrate the measurement of intangible assets into their management systems. After publication of the 1992 HBR article, several companies quickly adopted the Balanced Scorecard giving us deeper and broader insights into its power and potential. During the next 15 years, as it was adopted by thousands of private, public, and nonprofit enterprises around the world, we extended and broadened the concept into a management tool for describing, communicating and implementing strategy. This paper describes the roots and motivation for the original Balanced Scorecard article as well as the subsequent innovations that connected it to a larger management literature.
    [Show full text]
  • Towards a Balanced CSR Performance Measurement Framework
    Proceedings of the International Conference of Environmental Management, Engineering, Planning and Economics, p.p. 2353 – 2354, Skiathos Island, Greece, June 24-28, 2007. Towards a Balanced CSR Performance Measurement Framework Dr. Nikolaos A. Panayiotou, Lecturer National Technical University of Athens, Faculty of Mechanical Engineering, Section of Industrial Management & Operational Research, 157 80 Zografos, Greece Tel.: +302107721195 Fax: +302107723571 E-Mail: [email protected] Dr. Konstantinos G. Aravosis, Lecturer National Technical University of Athens, Faculty of Mechanical Engineering, Section of Industrial Management & Operational Research, 157 80 Zografos, Greece Tel.: +302107721359 Fax: +302107723571 E-Mail: [email protected] Peggy Moschou Mechanical Engineer Tel.: +302107723570 Fax: +302107723571 E-Mail: [email protected] Abstract In order to evaluate the real contribution of Corporate Social Responsibility (CSR) to a company as well as to its stakeholders, it must be measurable. The difficult task of measuring the results of CSR has been a matter of long discussion both by academics and practitioners. Some of the literature on Corporate Social Responsibility combines CSR with stakeholder theory introducing corporate social performance. The literature has attempted to describe emerging models of the issues that lead to a coherent model of what would represent corporate social performance. However, it is the case that social aspects are ‘‘soft’’ in nature, therefore being difficult to quantify. Innovated methods of performance measurement such as this of Balanced Scorecard has lately been introduced in some companies in their attempt to include non-financial indicators to give more balance and forecasting power to the traditional financial performance assessment system, but the view of Corporate Social Responsibility is rarely taken into account.
    [Show full text]