Top Social

How to measure corporate performances against a new ethically responsible business conduct

Measure corporate performances against a new ethically responsible business conduct

Let’s discover how a company can merge its CSR-based commitment and a Strategic Performance Management Model into a really responsible and sustainable strategy.

Corporate behaviour appears to be and to grow up being the main topic in the consumer assessment and evaluation of a company.

The ever changing and growing laws and regulations, a new cultural, environmental, social awareness impose a variety of issues, rules and knowledge dramatically wider than before to be faced. And it may be hard and costly for most companies.

On the other side, a strong commitment to ethical responsibility and sustainability may further and propel the company’s image and, after all, its performances.

As a consequence, managers need to be able to evaluate whether and how the company’s performances depend on a responsible engagement.

In my recent experience, the integration between Corporate Social Responsibility (CSR) principles and a strategic performance management platform has been appearing essential in pursuing the company’s strategy.

While other Balanced Scorecard (BSC) Models add new perspectives to the four traditional ones, an innovative approach to a BSC Model suggests to integrate and balance four CSR categories such as Ethics, Environment, Community, Governance into the traditional four perspectives of growth and learning, internal processes, customer relationship, and finance.

This articulation assures that any of the four usual perspectives be investigated according to all the CSR principles.

In the first table we show a sample of how CSR categories (Ethics in the example) can incorporate the BSC perspectives.

 

BSC Perspective CSR Obj. Category   CSR Objective
External Ethics Correct quality/price relationship of the product/service
External Ethics Marketing policies ensuring advertising truthfulness
External Ethics Regular (ITT) Invitation To Tenders and (ITB) Invitation To Bids management
External Ethics Truthfulness and honesty in applying for authorizations, permits, licences, etc.
External Ethics Truthfulness, timeliness and honesty in managing fines and sanctions
Financial Ethics Capital reward sharing
Financial Ethics Ethical investments in the long term
Financial Ethics Adequate wage policy
Financial Ethics Fair and prompt payment guarantees for suppliers and employees
Internal Process Ethics Informative transparency
Internal Process Ethics Security and hygiene
Internal Process Ethics Controls ability of preventing from creating extra accounting funds
Internal Process Ethics Regular Balance Sheet preparation
Learning and Growth Ethics Transparency and thoroughness of Internal Processesernal communication
Learning and Growth Ethics Thoroughly extended perception of ethical values
Learning and Growth Ethics Definition of a Code of Ethics and a Disciplinary System
Learning and Growth Ethics Communication and diffusion of the Code of Ethics and the Disciplinary System

 

In the following BSC-based table we show how a sample of the External perspective can be rearranged to incorporate some CSR instances.

 

BSC Perspective CSR Obj. Category   CSR Objective
External Environment Ethical purchasing policy, giving priority to suppliers with sound environmental practices
External Ethics Correct quality/price relationship of the product/service
External Ethics Marketing policies ensuring advertising truthfulness
External Ethics Refrain from using goods or services  produced with child or prison labor
External Ethics Transparency and thoroughness of external communication
External Ethics Truthfulness and honesty in applying for authorizations, permits, licences, etc.
External Ethics Truthfulness, timeliness and honesty in managing fines and sanctions
External Governance Correct Board of Auditors and Auditing Firms relationships
External Governance Competitive Positioning
External Governance Correct relationships with Public Institutions and Security Agencies
External Governance Supply and service compliance to rules and regulations
External Governance Timely response to customers complaints
External Governance Effective contract management
External Governance Correctness and regularity in Purchase Orders to suppliers
External Community Contributions to local development
External Community Cooperation in community projects
External Community Policies prioritizing local suppliers and employees
External Community Partnership and cooperation with communities for pursuing mutual goals

 

The multidimensional approach that these tables suggest allows the CSR objectives and the BSC measures to be investigated from either point of view.

 

In an overall vision of the above outlined approach, any individual working in the Company, or for any reason involved with its business and management, will surely acknowledge, and adapt him/herself to, the strategic importance of sustainable behaviour as essential to the survival and success of the Company.

 

Leave your comments

Post comment as a guest

0
Your comments are subjected to administrator's moderation.
terms and condition.
  • No comments found

CoalaWeb Social Links

Share This

This website uses cookies to enhance user experience. By continuing to browse our website you are agreeing to their use.