Concepedia

Measuring organizational performance: beyond the triple bottom line

Business Strategy and the Environment · 2006 · 924 citations · 36 references

TL;DR

Organizational performance measurement is challenging due to evolving metrics, and sustainability reporting has expanded options without consensus, making frameworks complex. The study aims to develop a conceptually grounded yet practically simplified approach to measuring sustainable performance. The authors propose a stakeholder‑based Sustainable Balanced Scorecard linked to a single Organizational Sustainability Performance Index that consolidates SBSC measures. The index enables measurable and stakeholder‑accessible sustainable performance. © 2006 John Wiley & Sons, Ltd and ERP Environment.

Abstract

Abstract Measuring organizational performance is difficult, especially when what has to be measured keeps changing. Sustainability concepts have dramatically widened the scope of measurement options and leading organizations are grappling with sustainability reporting, but there is no sign of consensus on a common reporting standard and the competing frameworks are impossibly complex. This paper recognizes that measuring sustainable performance has to be conceptually based but simplified to be practically useful. It proposes a stakeholder‐based, Sustainable Balanced Scorecard (SBSC) conceptual framework coupled with a single‐measure Organizational Sustainability Performance Index to integrate the measures in the SBSC. The Index helps make sustainable organizational performance measurable and accessible to stakeholders. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.