In August 2019, the U.S. Business Roundtable, the leading gathering for Fortune 500 CEOs, stated that “each of our stakeholders is essential. We commit to deliver value to all of them, for the future success of our companies, our communities and our country.” This re-orientation acknowledges widespread concerns that companies who focus only on their shareholders ignore and may even contribute to the societal problems of environmental degradation, growing inequality, and persistent poverty.
Reimagining the Balanced Scorecard for the ESG Era
An update to one of the most successful management tools of all time.
February 03, 2021
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Summary.
Companies are increasingly aware that their customers and society in general expect businesess to adopt and work towards social and environmental objectives as well as the traditional financial ones. This involves not only re-evaluating firms’ models but re-imagining new, more inclusive ecosystems from a multi-stakeholder point of view. In this article, the authors propose an update to the Balanced Scorecard, one of the most successful management tools of all time, so that it can better help align stakeholders coming from very different places around each other’s goals as well as their own.