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Balanced Scorecard

  • By: John L. Stancil
  • In: Green Business: An A-to-Z Guide
  • Edited by: Nevin Cohen & Paul Robbins
  • Subject:Sustainability, Environmental Policy & Law (general)

The balanced scorecard (BSC) was popularized by Robert Kaplan and Greg Norton in the 1990s. The BSC is a strategic tool that seeks to align objectives of the enterprise with its vision and strategy. As such, it focuses on four perspectives: financial, customer, internal business processes, and learning and growth. Measurable goals within each objective are set, monitored, and evaluated. It is balanced because it looks at financial and nonfinancial measures in reaching the company's objectives. It is integrated, as success in meeting goals of one perspective will result in improved performance in other perspectives.

With an enhanced interest in environmentalism and sustainability, many have suggested incorporating sustainability into the BSC. Any attempt to measure success in sustainability must meet four criteria: (1) it must address ...

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