Sustainability in The Banking Industry: A Strategic Multi‐Criterion Analysis

The current paper aims to develop an effective and integrated MCDM model for the evaluation of the sustainability practices in the banking services, employing a multi‐stage, fuzzy MCDM model that integrates the Balanced Scorecard, fuzzy AHP and fuzzy TOPSIS. The approach aims to evaluate sustainability from the following four perspectives: financial stability, customer relationship management, internal business process and environment‐friendly management system. A real implementation dealing with the six largest commercial banks in India is discussed. The results highlights the critical aspects of the evaluation criteria and the issues in improving sustainable banking performances. Regarding the sustainability issues, it is shown that the environment‐friendly management system takes a back seat compared with the other criteria. Furthermore, the results show that there is a misunderstanding of the role that corporate social responsibility plays with respect to environmental issues. The developed evaluation model offers a valuable management tool for banks' administrators by assisting them in strategic choices in order to achieve their objective of sustainability and sustainable banking. Moreover, it offers a measuring tool with unique features that complements the emerging trend of integrated reporting considering uncertainty. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

浅议中小企业如何有效运用平衡计分卡

平衡记分卡是上世纪90年代以来在世界各国企业普遍应用的一种新型战略管理工具,其对企业面向未来根据竞争环境来制定和实施战略起到了重要的作用。很多大企业利用基于平衡记分卡所建立起来的绩效管理系统来进行战略、绩效管理,并取得了显著成效;但是对于相当多的中小企业而言,他们实施平衡记分卡的效果不显著,甚至是失败了。那么,中小企业是否可以引入平衡记分卡这样先进的管理手段呢?在实施中有什么问题?如何解决呢?根据中小企业的特征,对平衡记分卡的设计、实施等环节进行必要的简化,以达到中小企业也能较好运用平衡记分卡的目的。     

Commitment Strategies for Sustainability: How Business Firms Can Transform Trade‐Offs Into Win–Win Outcomes

This paper addresses a fundamental problem in corporate sustainability: How can corporations transform trade‐offs through win–win‐oriented governance strategies aimed at creating value? Drawing on new strands of research in business ethics, we employ an ‘ordonomic’ perspective and proceed in four steps. First, we sketch how sustainability semantics has evolved historically from a societal searchlight to a heuristics for business practice. Second, we discuss how business firms can make strategic use of moral commitments as governance contributions by deploying individual or collective self‐commitments as well as commitment services in their stakeholder relations. Third, we combine these four governance strategies with the three ESG (‘ecological, social and governance’) criteria of sustainability. We derive and illustrate with real‐life examples a 12‐box matrix as a tool for the strategic management of corporate sustainability. Fourth, we discuss the specific contribution of our ordonomic approach to the literature. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment     

Corporate engagement in processes for planetary sustainability: understanding corporate capacity in the non‐renewable resource extractive sector,Australia

In recent years corporations have come under increasing pressure from governments, consumers, investors, competitors, business partners and communities to balance their pursuit of economic gain with environmental and social concerns. Non‐renewable resource extractive corporations in particular, due to their profile, visibility and activities, have come under mounting pressure to embed the concept of ecological sustainability into strategic decision‐making processes and operations. In this regard, there is a growing base of evidence that describes efforts, successes and failures in the sector to meet mounting societal expectations. However, to date there has been limited explanatory research into corporate capacity to engage in processes for ecological sustainability. This paper presents an emergent explanation of the internal factors mediating corporate engagement in ecological sustainability in non‐renewable resource extractive corporations in Australia. It identifies the five factors of leadership, resources, structures, culture and understanding and conceptualizes these internal factors as capacity for engagement. While all of the factors are seen as interdependent and essential, leadership is identified as the most critical. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

Sustainability reporting,materiality, and accountability assessment in the airport industry

Air travel is, nowadays, recognized as being one of the most popular modes of transport. Air transport is among the most significant contributors to the world gross domestic product and is accountable for a great environmental and social impact. Driven by the well‐established sustainability discourse and the vital role businesses can play in disseminating the sustainable development concept, this paper attempted to map airport industry's most material operational aspects and assess airport operators' accountability level on disclosing corporate information regarding airports' economic, environmental, and social performance. In this context, 33 reports and 903 material issues representing 193 international airports were reviewed and assessed, and a methodology for benchmarking the accountability level of best reporting airport operators was developed, showcasing materiality assessment as a useful management tool for strengthening airport operators' business strategy and enhancing their corporate performance. The paper indicated that (a) customer focus (i.e., health, safety and satisfaction), economic viability, and business continuity and preparedness are operational aspects of high materiality and (b) the disclosure level, especially concerning specific performance indicators, is still moderate. In conclusion, this study has shown that materiality assessment gains ground as a management tool among airports' management teams and the completeness of Sustainability reports is positively correlated with the “level” of adherence as described by the Global Reporting Initiative.     

基于平衡计分卡的六西格玛项目选择指标体系构建

企业如何对六西格玛项目进行选择,选择一个科学的评价体系至关重要。文章借鉴了六西格玛平衡计分卡原理和SWOT企业战略管理分析理论,通过财务、顾客、内部业务流程以及学习和成长四个维度分析,最后经过咨询质量管理专家,对指标进行修正,构建了基于六西格玛平衡计分卡的评价体系,希望能够为六西格玛项目选择提供一个有益的借鉴。     

Transdisciplinarity in Corporate Sustainability: Mapping the Field

Sustainability challenges are complex. So are the challenges that business firms encounter in their corresponding quest for corporate sustainability. Given this complexity, there is a need for new approaches to corporate sustainability management research. We discuss transdisciplinarity as such a novel approach in three steps. After showing that specialization is the primary conventional response to increasing complexity, we first briefly compare how inter‐, multi‐ and transdisciplinarity reintegrate decentralized, specialized knowledge. The second step describes how the emerging sustainability science has recently advanced the transdisciplinary methodology. Based on the two dimensions of interdisciplinarity and academia–practice collaboration, we third generate a framework for mapping existing research approaches in terms of their transdisciplinary qualities. We use this framework to identify room for novel methodologies in sustainability management research. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Measuring organizational performance: beyond the triple bottom line

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.     

Dynamic business modeling for sustainability: Exploring a system dynamics perspective to develop sustainable business models

In the last decade, business models for sustainability have gained increasing attraction by corporate sustainability scholars with international conferences and scientific journals encouraging the development of the debate on their design, use and innovation processes. Capitalizing on the basic principles, requirements, and methodological limitations found in the literature on sustainability‐oriented business model design, this paper aims to conceptualize a dynamic business modeling for sustainability approach, which combines an adapted sustainable business model canvas and system dynamics modeling. To this end, the paper also illustrates the key operating principles of the proposed approach through an exemplary application to Patagonia's business model. Findings suggest that dynamic business modeling for sustainability may contribute to sustainable business model research and practice by introducing a systemic design tool, which frames environmental, social, and economic drivers of value generation into a dynamic business model causal feedback structure, thus overcoming methodological gaps of the extant business model design tools.     

Sustainable tourism in Greek islands: the integration of activity‐based environmental management with a destination environmental scorecard based on the adaptive resource management paradigm

Tourism is a major industry that can lead to economic gains as well as to degraded environment and social infrastructure. Tourism has the potential to destroy the available common environmental resources through overuse and poor management practices, as limited information disclosure and poor monitoring of actions encourage the perpetuation and extension of environmental problems. Based on the adaptive resource management paradigm for addressing problems related to the use of the commons, this paper suggests a methodology for the development of a management tool that can provide island hotels with a continuous flow of timely, relevant, accurate and objective information on the environmental impact of critical corporate activities. The tool, named the destination environmental scorecard (DES), draws on activity‐based management concepts and can help local hotel SMEs measure and compare their performance against certain standards and thus conduct operations in a responsible and measurable way to the benefit of both business financial performance and regional sustainability. The paper presents the DES operational characteristics and the potential benefits from its implementation. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.     

The Influence of Governance Structure and Strategic Corporate Social Responsibility Toward Sustainability Reporting Quality

Increased business complexities coupled with enhanced global transformation have propelled corporations to behave as responsible citizens to drive the sustainability agenda. Many corporations incorporate their affirmative commitment to sustainable business practices into their corporate identities and give evidence for this in their sustainability reports. This paper examines the role of the board of directors in sustainability reporting quality (SRQ) in the Asia‐Pacific region. Based on a cross‐sectional study of 113 companies from 12 countries in the region, we find that the SRQ in the region leaves much room for improvement. However, we find that the institutionalization of the concept of corporate social responsibility (CSR) in an organization provides a sound foundation for enhancing SRQ. We find that the value of CSR anchored in the vision and/ or mission statement and strategic alliances fostered with non‐governmental organizations are positively associated with SRQ. This study contributes to strengthening the understanding, promoting discussion on the state of sustainability reporting in the Asia‐Pacific context and laying a solid foundation for more aggressive efforts to enhance SRQ. The study identifies the significant drivers currently associated with SRQ. The weak role of the board of directors in upholding the sustainable development agenda through the reporting process is highlighted. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

基于ABM和BSC的绩效管理体系重构

近年来,在企业全球化的大环境下,全球各产业的竞争日趋激烈,这种变化迫使企业重新审视其经营目标、发展战略以及绩效评价体系。文章在简要的阐述BSC和ABM机理的基础上,提出了基于BSC和ABM的企业绩效管理体系的构架,并对其构架步骤展开了分析。     

Can sustainable investments outperform traditional benchmarks? Evidence from global stock markets

To contribute to overcoming global sustainability challenges, investors have been increasingly interested in making sustainable investments and incorporating environmental, social and governance (ESG) criteria into their portfolio selection decisions and managerial activities. However, these investors and other agents interested in sustainable investment need updated and robust information to support their decision making. We analyzed the performance of several Dow Jones Sustainability Indices (DJSIs) and compared them with their respective market benchmarks from 2013 to 2018. The indices comprise the following regions and countries: the world, the Asia‐Pacific, Europe, emerging markets and the US. The analysis was conducted based on both classic and modern portfolio metrics. The results suggest that sustainable investment performance is still heterogeneous worldwide, but there is a promising opportunity for investors to obtain superior risk‐adjusted returns in certain regions while incorporating sustainable investment practices. The findings are of utmost importance to financial market practitioners, business managers, academics and other stakeholders interested in promoting investments, corporate practices and scientific knowledge to achieve the Sustainable Development Goals (SDGs).     

Payments for ecosystem services and corporate social responsibility: Perspectives on sustainable production,stakeholder relations,and philanthropy in Thailand

Payments for ecosystem services (PES) are environmental management tools that enable corporations to simultaneously enhance their environmental performance and fund sustainable development in rural areas. PES is primarily promoted as part of a sustainable production strategy for conserving natural resources, offsetting carbon emissions, and green supply chain management. Nevertheless, PES uptake by the private sector remains low, and few studies have analysed whether corporate‐financed PES schemes conform to this rationale. This study evaluates three of the first PES schemes in Thailand, financed by large corporations in the water utilities, aquaculture, and beverage sectors. Interviews with 39 business managers and project stakeholders suggest that PES may be viewed as a tool for philanthropy, public relations, and gaining license to operate—akin to many corporate social responsibility initiatives. Explanations and ramifications are discussed in the context of ecological uncertainty, risk management, financial performance, organisational learning, and the corporate‐engagement strategies of non‐governmental organisations.     

运用平衡计分卡,审视和提升公司平衡管理

针对平衡计分卡(BSC)这种全新的战略管理理念与工具,我们最应该关注的是它的“执行力”。本文首先对“平衡管理”问题进行了重新审视,并试图与Robert Kaplan的四大平衡进行“融合”。在此基础上借用“战略地图”的巨大力量,将公司愿景、战略目标、关键控制点和测量工具之间主要因果关系逐一具体化和形象化,致力于公司战略目标、平衡管理理念具体落实到数字指标。     

Convergence and divergence issues in strategic management – Indonesia's experience with the Balanced Scorecard in HR management

Globalization pressures escalate competitiveness and, in response, global companies tend to adopt a handful of Western management practices. One of these is the Balanced Scorecard. However, empirical evidence assessing the transferability and effectiveness of Western best practices into Asian countries is scarce. In particular, empirical evidence relating to the effectiveness of Balanced Scorecard implementations is limited, as is the impact of Asian Balanced Scorecard contextual variables. This article contributes to this gap through the study of a Central Bank of Indonesia (BI) Balanced Scorecard implementation within a conceptual framework that explores convergence and divergence of global management practices. The lessons learned discuss how divergent factors such as national culture, leadership styles, organizational culture and human resource management practices can influence Asian context Balanced Scorecard implementations.     

Web content mining for comparing corporate and third‐party online reporting: a case study on solid waste management

This study investigates the coverage of solid waste management on 1142 websites maintained by companies, news media and non‐governmental organizations to validate an automated approach to content and language analysis. First, a frequency analysis of waste management terms sheds light on the breadth and depth of their environmental discourses, revealing that corporate and media attention to waste management is small compared with that of non‐governmental organizations. Second, an investigation of their attitudes toward waste management suggests that companies avoid negative information in environmental communication, unlike news media or non‐governmental organizations. Ultimately, an automated tool for ontology building is employed to gain insights into companies' shared understanding of waste management. The ontology obtained indicates that companies conceptualize waste management as a business process rather than framing it from an ecological perspective, which is in line with findings from previous research. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

基于平衡计分卡的煤炭企业绩效评价研究

企业绩效评价一直是管理科学研究的热点问题,也是企业管理的难点之一。目前,我国企业尤其是煤炭企业的绩效评价方法相对落后,对无形资产重视程度不够,亟待解决。本文应用平衡计分卡对滨湖煤矿进行绩效评价,从财务、客户、内部业务流程、学习与成长四个维度构建企业绩效评价指标体系,建立企业绩效定量综合评价模型,通过对企业2007年以来的绩效进行分析,提出了五条具体改善措施,从战略的高度审视企业绩效和未来发展。     

Overcoming the main barriers in initiating and using purchasing-BSCs

The Balanced Scorecard (BSC), as a strategic management and control tool with an integrated set of leading and lagging performance measures, can secure successful implementation of purchasing strategies. However, the quality of the BSC itself as well as the effectiveness of the process to set up, implement, and use the BSC are crucial. Recognizing the growing importance of the purchasing-BSC (P-BSC) combined with the problems companies are facing, the authors emphasize the necessity for a better management process for purchasing strategies, introduce the P-BSC concept as a means to improve implementation success, and study the main barriers companies are facing when they initiate and use P-BSCs. This study and the recommendations how to overcome these barriers are based on seven in-depth case studies which derived from an action research project with European multinational firms.     

Why Do Companies Not Produce Sustainability Reports?

Sustainability reporting emerged on the corporate scene nearly 30 years ago as a key mechanism through which business organisations would manage a transition to a new business landscape dominated by greater concern and consciousness about sustainability. While it has become something of a feature on the corporate agenda in some parts of the world, the majority of business organisations do not undertake this type of reporting. This paper explores why 23 of Australia's top 200 companies do not undertake sustainability reporting. The study is situated in the context of a considerable literature that promised numerous benefits to be derived from this type of reporting. The paper uncovers various social and organisational factors that raise some new questions about legitimacy theory, corporate accountability and the spread and uptake of this organisational practice. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.