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University of Perpetual Help System Dalta

Las Piñas Campus

A CRITICAL ANALYSIS ON THE: REIMAGINING THE

BALANCED SCORECARD FOR THE ESG ERA

A Critical Analysis Presented to the Faculty of the Business

Administration and Accountancy
University of Perpetual Help System Dalta
Las Pińas City

In Partial Fulfillment of the Requirement for the Degree of Bachelor

of Science in Accountancy

Submitted By:

Cabangon, Sheina Gaile C.

Catapang, Marianne Mae
Jimenez, Marjorie F.
Quiambao, Rogine V.
Santos, Christian B.

Submitted To:

MS. VANESSA B. PABLO, LPT, DBA

Professor

July 2021

College of Business Administration and Accountancy

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University of Perpetual Help System Dalta

Las Piñas Campus

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Reimagining the Balanced Scorecard for the ESG Era

The ESG score is a numerical representation of how it is

considered to perform across a wide variety of environmental, social,

and governance (ESG) issues. It is determined by how well the

company is perceived to be doing. Businesses are becoming more

aware that their consumers and society want them to embrace and

strive toward environmental and social goals in addition to financial

aims. (Russell, 2015).

I. INTRODUCTION

Robert S. Kaplan and David Mcmillan wrote

Reimagining the Balanced Scorecard for the ESG Era. This

article is very interesting and insightful because we've learned

that there are various factors to consider in a company, not

just profit. The article addressed the critical nature of finding

the right balance between environmental, social, and

governance factors. It discusses how important it can be to

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University of Perpetual Help System Dalta

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adapt not only in one area but in all areas and to prioritize all

stakeholders rather than just one and concentrate on non-

financial or profit-related elements. This is an astute

observation, particularly for the corporate sector and company

owners, in order to create a balance between the

environment, social, and governance (ESG).

II. SHORT SUMMARY OF THE WORK

The Environmental, Social, and Governance (ESG) era

is a series of standards that enables any company to be

environmentally, socially, and economically sustainable by

aligning any criteria with the ESG standards. Moreover, some

companies use the Balanced Scorecard management system

in order to comply with ESG standards. By environmental

standards, this implies that an organization acts as a steward

of the ecosystem without causing ecological damage.

According to social standards, this implies that the company

values its employees and the community in which it works by

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University of Perpetual Help System Dalta

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providing them with the tools to live in decency and respect.

By governance standards, this refers to the openness of its

activities to the general public. Furthermore, the Balanced

Scorecard is a scorecard on how said company paved the

road it selected by adhering to the ESG criteria to the greatest

extent possible.

III. YOUR ARGUMENTS

Yes, adding the two perspectives on the BSC has

many advantages for an inclusive ecosystem from a multi-

stakeholder point of view. However, it is also apparent that it

is still in the early development stage to implement it. One

suggestion that we can propose is to consolidate the social

and environmental perspectives in the existing perspectives.

This means that while the new perspective is still in

development, the business may still use the current BSC but

with the two perspectives in mind. Although this model works

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University of Perpetual Help System Dalta

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well for companies with a BSC and willing to extend it,

companies should consider the level of integration in detail

before adopting the new additional measures.

As a follow up on the previous statement, once the

development is complete, the businesses or organizations

may now implement it in order for them to obtain competitive

strategies and link corporate sustainable objectives with

actions and performance outcomes. This is to justify the

further benefits that can be achieved in adding the two

perspectives or the Sustainable BSC.

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IV. CONCLUSIONS

To conclude, this article demonstrates that managers

and businesses must re-evaluate their company models - that

is, their strategies - and examine all relevant factors, such as

a much more inclusive environment that focuses on many

stakeholders instead of just one. There has been a growing

body of literature on organizations and government

governments that aim to protect the environment, respect and

execute law that benefits society, and demonstrate the

capacity of decent governance, if not actual governance.

Organizations within different communities that abide by many

of the ESG standards continue to grow as information

becomes more readily available or even manufactured,

placing organizations under constant pressure to innovate to

remain successful for the environment in which it operates,

the society to which they owe their existence, and the type of

governance through which they wish to be remembered. To

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University of Perpetual Help System Dalta

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conclude the research, it is suggested that companies at all

levels utilize the BSC approach to achieve any early issues

which its use may have created. In so doing, stakeholders will

strike a balance between environmental, social, and

governance considerations, especially in light of the

pandemic.

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University of Perpetual Help System Dalta

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V. REFERENCES

Kaplan, R., & McMillan, D. (2021, February 15). Reimagining the

Balanced Scorecard for the ESG Era. Harvard Business

Review. https://hbr.org/2021/02/reimagining-the-balanced-

scorecard-for-the-esg-era.

Nørreklit, H., Kure, N., & Trenca, M. (2018). Balanced scorecard.

The international encyclopedia of strategic communication, 1-

6.

Young, D., Woods, W., & Reeves, M. (2021). Optimize for both

social and business value. In Winning the'20s (pp. 83-94). De

Gruyter.

Russell, R. H. (2015). Balanced Scorecard. Wiley Encyclopedia of

Management, 1-4.

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