In this paper, the goals will be emphasized on how the Balanced Score-card (BSC) can be improved towards a Sustainability Balanced Scorecard (SBSC) and used. Furthermore the correlation between the Implementation of Sustainability Balanced Scorecard (SBSC) and the Stock Performance in Study Case of DAX 30 Companies Performance between 2016 and 2018 would be theoretical evaluated and statistically tested.
Nowadays, the term sustainability has become popular among companies to implicate social, economic and environmental pillars to their strategy and management of the company. Today, companies should not only focus on their profits, but they are also forced to concern about other issues such as social, economic and environmental. Unfortunately, many companies still do not know how to implement or measure its outcomes. Therefore, this academic paper might be helpful to assist especially managers to implement the concept of Sustainability Balanced Scorecard (SBSC) as strategic controlling for their long-term success.
However, these issues would be a challenge for all managers who in general have role for planning, organizing, leading, and controlling so that they need a tool such as Sustainability Balanced Scorecard which might be supporting them. Moreover, having concern to other issues above and inserting them into the concept of Balanced Scorecard, which is in general consisting of four perspectives, such as finance, customer, internal process, and learning & growth, it might become a challenge because they probably need to spend extra more money for doing that and it might affect to their profit.
Table of Contents
1. Introduction
1.1 Background
1.2 Research Question and Development of Hypotheses
1.3 Problem Description
1.4 Objektive
1.5 Structure
2. Literature Review
2.1 The Concept of Balanced Scorecard (BSC) as a Strategic Controlling Instrument
2.2 The Definition of SBSC
2.3 The Process of Formulating SBSC
2.4 A Strategy Map for SBSC represents How the Organization Creates Value
2.5 The Mechanics of SBSC according to Sustainability Strategy Types.
2.5.1 SBSC for the Clean Type (Sustainable Market Buffering Strategy)
2.5.2 SBSC for the Efficient Type (Sustainable Cost Strategy)
2.5.3 SBSC for the Innovative Type (Sustainable Differentiation Strategy)
2.5.4 SBSC for the Progressive Type (Sustainable Market Development)
2.6 The Five-Perspectives of SBSC.
2.6.1 Financial
2.6.2 Customer
2.6.3 Internal Business Process
2.6.4 Learning and Growth
2.6.5 Non-Market Perspective (Society & Natural Environment)
2.7 The Concept of Indicators
2.7.1 Financial Indicators
2.7.2 Non-Financial Indicators
3. An Example of the Implementation of SBSC shown in Daimler’s Annual- and Sustainability- Report
4. Methodology
5. A Statistical Analysis to examine the link between the Implementation of SBSC and the Stock Performance in Study Case of DAX 30 Companies Performance
6. Summary and Conclusion
Objectives & Core Themes
This thesis investigates whether the implementation of the Sustainability Balanced Scorecard (SBSC) correlates with the stock performance of DAX 30 companies between 2016 and 2018. The primary research goal is to determine if corporate disclosure of non-financial indicators (such as environmental, social, and human rights metrics) positively impacts market value.
- Integration of non-financial sustainability metrics into strategic management systems.
- Theoretical evaluation of the Balanced Scorecard (BSC) and its evolution into the SBSC.
- Empirical case study of Daimler AG’s implementation of sustainability strategies.
- Statistical analysis of 30 DAX-listed companies using linear regression to measure the link between sustainability scores and stock price movement.
Excerpt from the Book
2.5.1 SBSC for the Clean Type (Sustainable Market Buffering Strategy)
According to Bieker & Gminder (2001, pp. 7 - 8), here, organizations try to show their business as green and responsible as possible to the public in order to anticipate emerging stakeholder demands by complying legislation and observing carefully competitors or markets. Furthermore, they also do not want to lose their "license to operate". Organizations tend to focus on legal compliance and on regular dialogues with the public to enhance trust and acceptance in politics and in the public.
The following Figure 4 shows an example how a cause-effect-relationship diagram of a SBSC of an organization type "clean".
When we go into the perspective of organizational learning, here, employees should be provided with the necessary know-how, such as training or session for communicating organization’s strategy, so that they are introduced with the current environmental legislation, for example: industrial health and safety standards. The use of leading KPIs like the number of days of training per capita or the numbers of means of internal corporate communications, could be applied here.
Whereas inside the perspective of internal business process, the organization has task to comply with all relevant environmental and industrial laws to avoid any negative public attention, for examples: reducing the number of accidents at work by providing safe tools at work and maintaining legal compliance of the production process.
Summary of Chapters
1. Introduction: Presents the background on environmental and social issues in corporate management, establishes the research questions, and outlines the thesis structure.
2. Literature Review: Details the theoretical framework of the Balanced Scorecard (BSC), its adaptation into the Sustainability Balanced Scorecard (SBSC), and the mechanics of various sustainability strategies.
3. An Example of the Implementation of SBSC shown in Daimler’s Annual- and Sustainability- Report: Provides a practical application case study of how Daimler AG integrates sustainability into its strategic management and annual reporting.
4. Methodology: Explains the quantitative and qualitative assessment process used to score 30 DAX companies based on their sustainability report disclosures.
5. A Statistical Analysis to examine the link between the Implementation of SBSC and the Stock Performance in Study Case of DAX 30 Companies Performance: Conducts a linear regression analysis using SPSS to test the correlation between sustainability scores and stock price performance.
6. Summary and Conclusion: Synthesizes the findings and concludes that, within the analyzed dataset, no statistically significant correlation exists between the SBSC scores and share price performance.
Keywords
Sustainability Balanced Scorecard, SBSC, Corporate Social Responsibility, CSR, DAX 30, Stock Performance, Sustainability Strategy, Non-financial Indicators, Strategic Management, Linear Regression, Greenhouse Gas, Environmental Management, Performance Measurement, Stakeholder Management, Disclosure.
Frequently Asked Questions
What is the core focus of this academic paper?
The research examines whether there is a statistically significant correlation between the implementation of a Sustainability Balanced Scorecard (SBSC) and the stock market performance of the 30 companies listed in the German DAX index between 2016 and 2018.
What are the primary thematic areas covered?
The paper covers strategic controlling instruments, the integration of sustainability pillars (economic, social, and environmental) into business models, non-financial reporting practices, and statistical methods to evaluate corporate performance.
What is the main research hypothesis?
The research tests the null hypothesis that there is no statistically significant correlation between higher scores of SBSC implementation (via sustainability report disclosures) and the growth rates of stock price performance of DAX 30 companies.
Which scientific methods are applied in the study?
The study uses a theoretical literature review and a statistical approach. It creates a proprietary scoring system for sustainability disclosure (0-3 scale) and applies linear regression analysis via SPSS to test the relationship between sustainability scores and stock price changes.
What does the main body of the work analyze?
The main body reviews the evolution of the Balanced Scorecard, provides a detailed case study of Daimler AG as a practical example of SBSC in the automobile industry, and details the scoring methodology applied to the 30 DAX companies.
How are the key concepts of this work characterized?
The work is characterized by the intersection of strategic management, non-financial accounting, and capital market performance, focusing heavily on sustainability disclosure as an instrument of modern strategic controlling.
How is the Daimler AG case study used in the research?
Daimler AG is utilized as a specific, real-world example to illustrate how a major industrial corporation integrates diverse perspectives—such as financial, customer, internal process, learning, and non-market aspects—to bridge sustainability strategies with financial success.
What is the conclusion regarding the link between SBSC and stock performance?
The statistical analysis leads to the acceptance of the null hypothesis, concluding that there is no statistically significant correlation between the degree of SBSC disclosure in 2016 and stock price growth through 2018 for the analyzed DAX 30 companies.
- Citar trabajo
- Christoper Dewangga Pramudita (Autor), 2019, Evaluation of the Relationship between the Implementation of Sustainability Balanced Scorecard (SBSC) and the Stock Performance, Múnich, GRIN Verlag, https://www.grin.com/document/509035
