Abstract
The circular economy concept needs to be part of the performance management system so that it is in line with a company’s vision and mission. Thus, the circular economy will play an important role at the operational level of companies. The circular economy needs to be internalized, starting by formulating the company’s vision and mission, establishing strategic objectives and performance indicators, and creating resource allocation policies. This research aims to design a sustainable performance management system in the context of a circular economy for state-owned plantation enterprises (SOPEs). This study used a qualitative research coding method that was validated in three SOPEs in Indonesia. Validation was performed by comparing the framework based on the conceptual formulation with the data and information obtained during field assessment. Primary data came from interviews with 15 managers, while secondary data came from official company documents. The research results show that the initial framework that was built is in accordance with the results of the exploration of the circular economy strategic objectives in the three SOPEs. The results of the 100 percent validation and perception test of managers on the range of values are important. Therefore, the proposed framework can be used in SOPE.
Highlights
To manage company performance concerning environmental interests, companies can base their performance measurement on the sustainability balanced scorecard (SBSC)approach [1,2,3,4,5]
SBSC is a BSC concept enriched by the triple bottom line concept
The triple bottom line concept is the basis for building stakeholder value in the economic, social, and environmental dimensions [13], while the BSC concept is used to formulate strategic objectives [14]
Summary
To manage company performance concerning environmental interests, companies can base their performance measurement on the sustainability balanced scorecard (SBSC)approach [1,2,3,4,5]. To manage company performance concerning environmental interests, companies can base their performance measurement on the sustainability balanced scorecard (SBSC). SBSC is a sustainability performance management approach that aims to guide a company’s long-term strategy by integrating the company’s profit motives with the interests of environmental conservation. SBSC is an approach for communicating and linking strategic objectives and measures in the form of planning, targeting, and aligning strategic initiatives and enhancing strategic learning feedback [6,7,8,9,10,11,12]. SBSC is a BSC concept enriched by the triple bottom line concept. The triple bottom line concept is the basis for building stakeholder value in the economic, social, and environmental dimensions [13], while the BSC concept is used to formulate strategic objectives [14]
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