For the last few decades, many have proposed that businesses cannot solely be measured on financial statements alone. They have argued that the internal managers and other stakeholders need more information to measure an organisation's strategic performance, its social impact, its efforts toward achieving sustainability, and its overall impact on the environment. The most common approaches used to measure these dimensions are the Balanced Scorecard and the Triple-Bottom Line. Measuring these other dimensions is not a simple accounting task and organisations have attempted to apply these new dimensions with mixed results.
Required:
Through your research, evaluate the strengths and limitations of using Balanced Scorecard and Triple-Bottom Line approaches at organisations to measure financial performance. In approximately 2,000 words, your paper must:
- Evaluate whether Balanced Scorecard and Triple-Bottom Line approaches provide managers with accurate and actionable information to make effective decisions in the short and long term;
- Evaluate the effectiveness (or ineffectiveness) of Balanced Scorecard and the Triple Bottom Line approaches as a control system;
- Evaluate the impact of Balanced Scorecard and Triple-Bottom Line approaches on stakeholders.