Balanced Scorecard Incorporating Social and Environmental Perspectives: Application Considerations and Impacts on Corporate Performance and Profitability
Abstract
information, optimize decision-making processes, and enhance competitive advantages. This paper critically explores the extent to which
enterprises should adopt a balanced scorecard incorporating social and environmental perspectives, and analyzes the impact of these perspectives on corporate profitability and performance in both the short and long term. First, it reviews the emergence and development of the balanced scorecard, including its background, application in performance measurement systems and strategic management systems. Secondly,
it discusses the core considerations for enterprises to utilize the balanced scorecard, such as integrating multi-source information, improving
operational efficiency, enhancing customer perception management, facilitating strategic planning, and responding to market changes. Then,
it focuses on the influence of social perspectives (e.g., learning and growth, customer satisfaction) and environmental perspectives (e.g., green
operations, compliance with environmental regulations) embedded in the balanced scorecard on corporate performance. Finally, it examines
the limitations of the balanced scorecard in practice, such as the need for customization, high resource input, and rigidity. The research concludes that the balanced scorecard integrating social and environmental perspectives can effectively improve the quality of management information and optimize decision-making, but its successful implementation requires diversified skills, experience and strong leadership support.
This study provides a theoretical reference for enterprises to rationally apply the balanced scorecard and realize the synergistic development
of social, environmental and economic benefits.
Keywords
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DOI: http://dx.doi.org/10.70711/memf.v3i2.8845
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