The paper 'Sustainability Balanced Scorecard - Wave Master Ltd " is a good example of a management case study. Corporate sustainability frameworks have become a progressive trend in management research in the last two decades (Deegan, 2014, p. 416). With most polls on management indicating that consumers now associate with companies that participate in sustainability, managers have tried to make this concept part of their strategic management. In the past, companies only concentrated on employees and financial performance while neglecting their social and environmental performance. Kaplan and Norton (1992, p. 71) reacted by developing a balanced scorecard that would help managers measure financial and operational performance.
However, with the business environment moving towards sustainability performance, Sustainability Balanced Scorecard (SBSC) was formulated, to integrate financial and non-financial “ soft” concepts associated with social and environmental issues into management (Schaltegger & Lü deke-Freund 2011, p. 6). As such, Sustainability Balanced Scorecard has become an important tool in management in the recent past. Managing Director of Wave Master Ltd, Mr. Bobster Master is one of the managers who have seen the need to adopt Sustainability Balanced Scorecard in a bid to incorporate social, environmental, and financial outcomes in the conventional four Balanced Scorecard perspectives to secure company’ s future financial success and existence.
Therefore, this report will develop a strategic map to Bobester and use it to recommend a suitable Sustainability Balanced Scorecard (SBSC) which translates the company’ s strategy into some array of financial and non‐monetary measures. In addition, the report will choose one of the concepts of developing a Sustainable Balanced Scorecard and explain it in relation to the Wave Master Ltd case study. 2.0 Strategic map of Bobster According to Kaplan & Norton (2004), the strategy map is defined as a plan which is applied to display the major strategic goals pursued by a firm.
Therefore, the strategic map of Bobster basically displays the strategic goals of Wave Master Ltd. The strategic goals of the company are placed under various perspectives including learning and growth, internal processes, customer, and financial as shown in figure 1 (Kaplan & Norton, 2004, p. 34). At the bottom of the hierarchy is learning and growth perspective which entails recruiting competent staff, training the staff, having effective IT systems, and improving employees’ motivation.
According to Schaltegger and Lü deke-Freund (2011, p. 8), it means the capability of the organization depends on the employees, organizational quality, and IT system. As a company which intends to expand its operation from Australia to Bangladesh, Bobster needs to recruit who will work in the new outlet. Therefore, the strategic objective would effectively hire competent employees and train within a period of two months. Staff motivation is another learning and growth concept which Bobster will need to focus on. WML’ s staff needs the motivation to overcome the challenges of a foreign country and to show commitment to offering customer value.
Therefore, the strategic objective is to offer bonuses and promotions to motivate his employees in the foreign market (Kaplan & Norton, 2004). The internal processes perspective involves improving partnerships, enhancing product eco-efficiency, and minimizing effects of the product life cycle (Kanga et al. 2015, p. 126). Bobster's aim is to partner with other companies to not only increase brand awareness but also to benefit from comparative advantages. Bobster is seeking partnership with Zhu Ling Company in Bangladesh to reduce its production cost and benefit from high-quality Bamboo.
The hierarchy also encourages the production of environmental products. WML is doing exactly that by making surfboards made from bamboo and board shorts from the recycled bottles. Lä nsiluoto and Jä rvenpä ä (2008, p. 186) claimed that Trading in ecologically friendly products reduces product risk of environmental pollution.
Burritt, R & Schaltegger, S 2010, Sustainability Accounting and Reporting: Fad or Trend?
Accounting, Auditing & Accountability Journal, vol. 23, no.7, pp.829 – 846.
Cadden, D.T & Lueder, S.L 2012, Small Business Management in the 21st Century, Flat World
Deegan, C 2014, Financial Accounting Theory, 4th edition, McGraw Hill Australia, Sydney.
Falle, S, Rauter, R, Engert, S & Baumgartner, R.J 2016, ‘Sustainability Management with the
Sustainability Balanced Scorecard in SMEs: Findings from an Austrian Case Study’, Sustainability, vol. 8, no.545, 1-16.
Gray, R 2010, ‘Is accounting for sustainability actually accounting for sustainability...and how
would we know? An exploration of narratives of organizations and the planet’, Accounting, Organizations and Society, vol. 35, no. 1, pp. 47-62.
Hansen, E.G & Schaltegger, S 2012, Pursuing Sustainability with the Balanced Scorecard:
Between Shareholder Value and Multiple Goal Optimization, Leuphana University of Lueneburg.
Hopwood, A, Unerman, J & Fries, J 2010, ‘Introduction to the accounting for sustainability case
studies’, in Hopwood, A, Unerman J, & Fries, J. (eds), Accounting for Sustainability: Practical Insights, A. G. Carrick Limited, London, pp. 1-28.
Gray, R, Owen, D & Adams, C 1996, Accounting and Accountability: Changes and Challenges
in Corporate Social and Environmental Reporting, Prentice Hall, London.
Ji, S & Deegan, C 2011, 'Accounting for contaminated sites: how transparent are Australian
companies?', Australian Accounting Review, vol.21, no.2, pp. 131-53.
Kanga, J, Chiang, C, Huangthanapan, K & Downing, S 2015, ‘Corporate social responsibility
and sustainability balanced scorecard: The case study of family-owned hotels’, International Journal of Hospitality Management, vol. 48, pp.124–134.
Kaplan, R & Norton, D 1992, The Balanced Scorecard - Measures that Drive Performance,
Harvard Business Review, vol. 70, no. 1, pp.71–79.
Kaplan, R.S & Norton, D.P 2004, Strategy Maps: Converting Intangible Assets into Tangible
Outcomes, Boston, Massachusetts, Harvard Business School Press.
Langfield-Smith, K, Thorne, H & Hilton, R 2012, Management Accounting: Information for
Creating and Managing Value, 6th Edition, McGraw Hill.
Länsiluoto, A & Järvenpää, M 2008, ‘Environmental and performance management forces:
Integrating “greenness” into balanced scorecard’, Qualitative Research in Accounting & Management vol.5, no.3, pp. 184–206.
Schaltegger, S & Lüdeke-Freund, F 2011, The Sustainability Balanced Scorecard: Concept and
the Case of Hamburg Airport, Leuphana University of Lueneburg.
Schaltegger, S & Wagner, M 2006, ‘Integrative management of sustainability performance,
measurement and reporting’, International Journal of Accounting, Auditing and Performance Evaluation, vol. 3, no. 1, pp.1-19.