A Study of Green Balanced Scorecard Model

Abstract

The Balanced Scorecard (BSC) is widely applied and it is playing a significant role as a tool for organizational performance evaluation and strategic management. With the increasing emphasis on the concept of green development, in addition to considering the impact of the environment on business performance and development, the BSC must also consider the impact of business performance and development on the environment. In this paper, based on the traditional BSC, I construct the Green Balanced Scorecard Model (GBSCM) with a new “environment and green” dimension, raising it to the same level as the other four dimensions. In turn, I divide the “environment and green” dimension into internal and external environments, soft and hard environments, and analyze it in terms of time and space dimensions, as well as its connotation and indicator composition. I extend the original internal processes to the outside of the organization and expand them into process dimension. Also, I extend the finance into value process and enhance it to form a sustainable GBSCM. This model can provide a thinking guidance model for green and sustainable enterprise development. In the GBSCM, the customer dimension is drawn at the top, indicating that the customer has the highest priority and that customer needs comes first. The learning and growth dimension and the environment and green dimension are at the bottom, indicating that based on the environment and green development, continuous learning and growth is the basis and foundation of sustainable development of enterprises. The process is where the business exists and the value is where the process results, so they are in the middle. Process, value, learning and growth, environment and green complement each other, so companies have their bread buttered on both sides. Enterprises learn and grow according to the concept of green environment and sustainable development. Vision and strategy pentagram points at the five dimensions of the enterprise, guiding the enterprise to maintain dynamic and balanced development in the coordinates of time and space, and then achieve the success of the five dimensions.