Exploration of Association Between Corporate Social Responsibility and Balance Scorecard

Dr Ritika Jain; Prof. Chinmay Gandhi

Volume : III, Issue : VIII, August - 2014

Exploration of Association Between Corporate Social Responsibility and Balance Scorecard

Dr Ritika Jain, Prof. Chinmay Gandhi

Abstract :

Performance measurement systems play a key role in evaluating the strategic performance of an organization, but many managers agree that their evaluation systems do not adequately fulfil this function. Hence, in recent years a shift towards the Balanced Scorecard has emerged as a managerial approach to evaluate the strategic performance of an organization. Balanced Scorecard translates an organization�s mission and strategy into a comprehensive set of performance measures and provides the framework for strategic management. The concept of the Balanced Scorecard is discussed very often concerning its potential to use it as management tool for Corporate Social Responsibility. Although the existing approaches emphasise primarily the financial dimension, the tool can integrate other social and environmental aspects also. BSC can be used to align CSR to create competitive advantage by connecting strategy to performance leading to greater accountability of goals. By developing linkage between CSR and BSC, CSR can become a potent tool for the company to realize enhanced reputation, increased operational efficiency, improved customer and workforce loyalty. This paper explores the relation between CSR and BSC and suggests how linkage can be developed between two in banking industry