CHAPTER 3- non financial performance assessment Flashcards
what are the two theories to judging overall performance of a business
Kaplan and Nortons balanced scorecard
Elkingtons triple bottom line
what are the four sections of the Scorecard?
Financial perspective
Internal perspective
Learning and growth perspective
Customer Perspective
what do the the four areas of the Scorecard allow the business to do
assess the vision and strategy of the business
what does Elkingtons triple bottom line measure business performance on?
Planet, People and Profit
what is the profit of the business?
the financial or economic value created by the business
what does the people aspect mean?
the social values of the business and the way it treats its employees and the local community
what does the planet aspect mean?
the companies environmental values and impact on the environment
what is the are in the middle of the venn diagram?
the area of sustainability- ideal balance between social, environmental and financial performance
what is the advantage of Elkingtons triple bottom line?
good at assessing overall performance, it takes into account that businesses may have other objectives than just increasing profit
what is the disadvantage of Elkingtons triple bottom line?
hard to measure the businesses impact on planet and people
what are performance metrics?
Measure a businesses activities and performance. need to be suited to all stakeholders rather than just the managers and shareholders
what are the core competences of a business?
the unique abilities of a business that enable it to achieve a competitive advantage
what is short termism?
a tendency for businesses to prioritise current performance rather than the long term sustainability of the business
what is elkingtons triple bottom line theory
assesses business performance via three different factors: profit, people and planet
name a business which has become more sustainable by using elkingtons triple bottom line
Bt
what was bt ranked in the world for sustainability in 2015?
15th
why has bt invested in its sustainability/corporate social responsibilty?
it believes that there is a correlation between customer satisfaction and csr
what are some of the things that bt has done to improve the ‘planet’ factor of the triple bottom line (2013-2014)
- cut waste to landfill site was targeted at 30% but actually cut it by 57%
- 1% of pre tax profit was invested in sustainable activities
what are some of the things that bt has done to improve the ‘people’ factor of the triple bottom line (2013-2014)
- higer percentage of the uk have access to high speed internet
- relations with suppliers improved
- customer satisfaction rose by 1.5%
