Comparing the balanced scorecard and triple bottom line models

¶ … Ethics

Structural and behavioral ethics can be measured in a variety of ways using different models. It is important to use a model to monitor ethical behaviors in an organization because it can add a level of accountability that would otherwise be absent. For example, if employees are aware of the model that they are being critiqued upon then they are more likely to consider this model when making decisions. Ethical decision making can also foster a sustainable long-term perspective that is less likely to focus on risky short-term gains. There are several different models that are currently available that organizations can select from. This analysis will briefly introduce and compare the balanced scorecard and the triple bottom line model and discuss their applicability in modern organizations.

The Balanced Scorecard

The balanced scorecard was developed by Robert Kaplan and David Norton and serves as a useful tool for designing strategies along different types of important objectives in any organization. The Balanced Scorecard evolved when shortcomings with the traditional management control systems were identified. They found that the perspective was too narrow and they wanted to translate vision and strategy into objectives and measures across four balanced perspectives According to its founders, Robert Kaplan and David Norton, it consists of four major performance measures- Financial, Customer, Internal Business Processes, Learning and Growth (Kaplan & Norton, 2007). Toyota is an example of a company with a balanced scorecard approach to management.

Figure 1 - Balanced Scorecard Worksheet

Discussion

The balanced scorecard and the triple bottom line can help a company achieve a better ethical position because they require that the decision maker use a broader perspective when making decisions. For example, when you look at a problem from only your perspective you may draw certain decision points. However, if you include the investors and the customers as in the balanced scorecard or even the people and the planet as in the triple bottom line then you would look at the problem from a broader perspective that includes more people that would be affected by the decision. Since our world is becoming increasing interconnected, broaden the perspective is a necessary condition for strengthening ethical decision making.