Sustainability performance measurement with Analytic Network Process and balanced scorecard: Cuban practical case
Medel-González, Frank; García-Ávila, Lourdes Francisca; Salomon, Valério Antonio P.; Marx-Gómez, Jorge; Hernández, Cecilia Toledo
http://dx.doi.org/10.1590/0103-6513.189315
Production, vol.26, n3, p.527-539, 2016
Abstract
The recent years has arisen a global discussion in relation with how to incorporate sustainability at a business level. Corporate sustainability is a multidimensional concept, is the translation of Sustainable Development concept at a business level. Sustainability in organizations must be managed and assessed by decision makers, for that reason a multi-criteria sustainability performance measurement is necessary. The aim of this paper is combine different important tools that helps to make operative corporate sustainability and sustainability performance measurement in Cuban organizations. The combination of Sustainability Balanced Scorecard, multi-criteria decisions models like: Analytic Network Process, and Matrix of Sustainable Strategic Alignment, can help managers in sustainability performance measurement and assessment. The result of this paper focus in a Corporate Sustainability Measurement Network design as a first approach for further sustainability performance measurement systems development emphasizing in multi-criteria analysis.
Keywords
Sustainability performance, Measurement network, Analytic Network Process.
References
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Saaty, T. L. (1996). Decision making with dependence and feedback: the analytic network process (Vol. 4922). Pittsburgh: RWS Publications.
Saaty, T. L., & Vargas, L. G. (2006). Decision making with the analytic network process. London: Springer.
Saaty, T., & Vargas, L. (2012). The seven pillars of the analytic hierarchy process models, methods. Concepts & Applications of the Analytic Hierarchy Process, 175, 23-40. http://dx.doi.org/10.1007/978-1-4614-3597-6_2.
Schaltegger, S., & Burritt, R. (2005). Corporate sustainability. In H. Folmer (Ed.), The international yearbook of environmental and resource economics 2005/2006: a survey of current issues (New Horizons in Environmental Economics Series, 185). Cheltenham: Edward Elgar Publishing.
Schaltegger, S., & Wagner, M.(2006). Managing sustainability performance measurement and reporting in an integrated manner. sustainability accounting as the link between the sustainability balanced scorecard and sustainability reporting. In S. Schaltegger, M. Bennett & R. Burritt (Eds.), Sustainability accounting and reporting (Vol. 21, pp. 681-697). Dordrecht: Springer.
Searcy, C. (2012). Corporate sustainability performance measurement systems: a review and research agenda. Journal of Business Ethics, 107(3), 239-253. http://dx.doi.org/10.1007/s10551-011-1038-z.
Searcy, C. (2016). Measuring enterprise sustainability. Business Strategy and the Environment, 25(2), 120-133. http://dx.doi.org/10.1002/bse.1861.
Seidel, A.-P. D. S. (2013). Interview with Daniel Schmid on “Sustainability and the Role of IT”. Business & Information Systems Engineering, 5(5), 327-329. http://dx.doi.org/10.1007/s12599-013-0287-z.
Singh, R. K., Murty, H. R., Gupta, S. K., & Dikshit, A. K. (2007). Development of composite sustainability performance index for steel industry. Ecological Indicators, 7(3), 565-588. http://dx.doi.org/10.1016/j.ecolind.2006.06.004.
Starik, M., & Kanashiro, P. (2013). Toward a theory of sustainability management: uncovering and integrating the nearly obvious. Organization & Environment, 26(1), 7-30. http://dx.doi.org/10.1177/1086026612474958.
Steurer, R., Langer, M. E., Konrad, A., & Martinuzzi, A. (2005). Corporations, stakeholders and sustainable development I: a theoretical exploration of business–society relations. Journal of Business Ethics, 61(3), 263-281. http://dx.doi.org/10.1007/s10551-005-7054-0.
Tangen, S. (2005). Analysing the requirements of performance measurement systems. Measuring Business Excellence, 9(4), 46-54. http://dx.doi.org/10.1108/13683040510634835.
Van Marrewijk, M. (2003). Concepts and definitions of CSR and corporate sustainability. Journal of Business Ethics, 44(2), 95-105. http://dx.doi.org/10.1023/A:1023331212247.
Vimal, K. E. K., & Vinodh, S. (2013). Development of checklist for evaluating sustainability characteristics of manufacturing processes. International Journal of Process Management and Benchmarking, 3(2), 213-232. http://dx.doi.org/10.1504/IJPMB.2013.057726.
Woerd, F. D., & Brink, T. (2004). Feasibility of a Responsive Business Scorecard: a pilot study. Journal of Business Ethics, 55(2), 173-186. http://dx.doi.org/10.1007/s10551-004-1900-3.
World Commission on Environment and Development – WCED. (1987). Our common future. Oxford: Oxford University Press.
Zamcopé, F. C., Ensslin, L., & Ensslin, S. R. (2012). Development of a model for corporate sustainability assesment. Production, 22(3). http://dx.doi.org/10.1590/S0103-65132012005000048.
Zhou, L., Tokos, H., Krajnc, D., & Yang, Y. (2012). Sustainability performance evaluation in industry by composite sustainability index. Clean Technologies and Environmental Policy, 14(5), 789-803. http://dx.doi.org/10.1007/s10098-012-0454-9.
Zopounidis, C., & Doumpos, M. (2002). Multicriteria classification and sorting methods: a literature review. European Journal of Operational Research, 138(2), 229-246. http://dx.doi.org/10.1016/S0377-2217(01)00243-0.
Cinelli, M., Coles, S. R., & Kirwan, K. (2014). Analysis of the potentials of multi criteria decision analysis methods to conduct sustainability assessment. Ecological Indicators, 46, 138-148. http://dx.doi.org/10.1016/j.ecolind.2014.06.011.
Dale, V. H., Efroymson, R. A., Kline, K. L., & Davitt, M. S. (2015). A framework for selecting indicators of bioenergy sustainability. Biofuels, Bioproducts & Biorefining, 9(4), 435-446. http://dx.doi.org/10.1002/bbb.1562.
Dinh, L. T. T., Guo, Y., & Mannan, M. S. (2009). Sustainability evaluation of biodiesel production using multicriteria decision-making. Environmental Progress & Sustainable Energy, 28(1), 38-46. http://dx.doi.org/10.1002/ep.10335.
Elkington, J. (1997). Cannibals with forks: the triple bottom line of 21st century business. Capstone: Oxford.
Epstein, M. J., & Wisner, P. S. (2001). Using a balanced scorecard to implement sustainability. Environmental Quality Management, 11(2), 1-10. http://dx.doi.org/10.1002/tqem.1300.
Figge, F., Hahn, T., Schaltegger, S., & Wagner, M. (2002). The sustainability balanced scorecard -linking sustainability management to business strategy. Business Strategy and the Environment, 11(5), 269-284. http://dx.doi.org/10.1002/bse.339.
Hansen, E. G. (2010). Responsible leadership systems: an empirical analysis of integrating corporate responsibility into leadership systems. Wiesbaden: Springer Glaber.
Hermann, B. G., Kroeze, C., & Jawjit, W. (2007). Assessing environmental performance by combining life cycle assessment, multi-criteria analysis and environmental performance indicators. Journal of Cleaner Production, 15(18), 1787-1796. http://dx.doi.org/10.1016/j.jclepro.2006.04.004.
Hsu, C.-W., Hu, A. H., Chiou, C.-Y., & Chen, T.-C. (2011). Using the FDM and ANP to construct a sustainability balanced scorecard for the semiconductor industry. Expert Systems with Applications, 38(10), 12891-12899. http://dx.doi.org/10.1016/j.eswa.2011.04.082.
Hubbard, G. (2009). Measuring organizational performance: beyond the triple bottom line. Business Strategy and the Environment, 18(3), 177-191. http://dx.doi.org/10.1002/bse.564.
Kaplan, R., & Norton, D. (1996a). The strategy-focused organization: how balanced scorecard companies thrive in the new business environment. Boston: Harvard Business School Press.
Kaplan, R. S., & Norton, D. P. (1996b). Using the balanced scorecard as a strategic management system. Boston: Harvard Business Review.
Krajnc, D., & Glavič, P. (2005). A model for integrated assessment of sustainable development. Resources, Conservation and Recycling, 43(2), 189-208. http://dx.doi.org/10.1016/S0921-3449(04)00120-X.
Lee, K.-H., & Farzipoor Saen, R. (2012). Measuring corporate sustainability management: a data envelopment analysis approach. International Journal of Production Economics, 140(1), 219-226. http://dx.doi.org/10.1016/j.ijpe.2011.08.024.
Medel, F., García, L., Enriquez, S., & Anido, M. (2011). Reporting models for corporate sustainability in SMEs. In P. Golinska, M. Fertsch & J. Marx-Gómez (Eds.), Information technologies in environmental engineering (pp. 407-418). Heidelberg: Springer.
Möller, A., & Schaltegger, S. (2005). The sustainability balanced scorecard as a framework for eco-efficiency analysis. Journal of Industrial Ecology, 9(4), 73-83. http://dx.doi.org/10.1162/108819805775247927.
Neely, A., Gregory, M., & Platts, K. (1995). Performance measurement system design: a literature review and research agenda. International Journal of Operations & Production Management, 15(4), 80-116. http://dx.doi.org/10.1108/01443579510083622.
Ocampo, L., Vergara, V. G., Impas, C., Tordillo, J. A., & Pastoril, J. (2015). Identifying critical indicators in sustainable manufacturing using analytic hierarchy process (AHP). Manufacturing and Industrial Engineering, 14(3-4). http://dx.doi.org/10.12776/mie.v14i3-4.444.
Oliveira, L. R., Medeiros, R. M., Bragança-Terra, P., & Gonçalves-Quelhas, O. L. (2012). Sustainability: the evolution of concepts to implementation as strategy in organizations. Production, 22(1), 70-82. http://dx.doi.org/10.1590/S0103-65132011005000062.
Saaty, T. L. (1996). Decision making with dependence and feedback: the analytic network process (Vol. 4922). Pittsburgh: RWS Publications.
Saaty, T. L., & Vargas, L. G. (2006). Decision making with the analytic network process. London: Springer.
Saaty, T., & Vargas, L. (2012). The seven pillars of the analytic hierarchy process models, methods. Concepts & Applications of the Analytic Hierarchy Process, 175, 23-40. http://dx.doi.org/10.1007/978-1-4614-3597-6_2.
Schaltegger, S., & Burritt, R. (2005). Corporate sustainability. In H. Folmer (Ed.), The international yearbook of environmental and resource economics 2005/2006: a survey of current issues (New Horizons in Environmental Economics Series, 185). Cheltenham: Edward Elgar Publishing.
Schaltegger, S., & Wagner, M.(2006). Managing sustainability performance measurement and reporting in an integrated manner. sustainability accounting as the link between the sustainability balanced scorecard and sustainability reporting. In S. Schaltegger, M. Bennett & R. Burritt (Eds.), Sustainability accounting and reporting (Vol. 21, pp. 681-697). Dordrecht: Springer.
Searcy, C. (2012). Corporate sustainability performance measurement systems: a review and research agenda. Journal of Business Ethics, 107(3), 239-253. http://dx.doi.org/10.1007/s10551-011-1038-z.
Searcy, C. (2016). Measuring enterprise sustainability. Business Strategy and the Environment, 25(2), 120-133. http://dx.doi.org/10.1002/bse.1861.
Seidel, A.-P. D. S. (2013). Interview with Daniel Schmid on “Sustainability and the Role of IT”. Business & Information Systems Engineering, 5(5), 327-329. http://dx.doi.org/10.1007/s12599-013-0287-z.
Singh, R. K., Murty, H. R., Gupta, S. K., & Dikshit, A. K. (2007). Development of composite sustainability performance index for steel industry. Ecological Indicators, 7(3), 565-588. http://dx.doi.org/10.1016/j.ecolind.2006.06.004.
Starik, M., & Kanashiro, P. (2013). Toward a theory of sustainability management: uncovering and integrating the nearly obvious. Organization & Environment, 26(1), 7-30. http://dx.doi.org/10.1177/1086026612474958.
Steurer, R., Langer, M. E., Konrad, A., & Martinuzzi, A. (2005). Corporations, stakeholders and sustainable development I: a theoretical exploration of business–society relations. Journal of Business Ethics, 61(3), 263-281. http://dx.doi.org/10.1007/s10551-005-7054-0.
Tangen, S. (2005). Analysing the requirements of performance measurement systems. Measuring Business Excellence, 9(4), 46-54. http://dx.doi.org/10.1108/13683040510634835.
Van Marrewijk, M. (2003). Concepts and definitions of CSR and corporate sustainability. Journal of Business Ethics, 44(2), 95-105. http://dx.doi.org/10.1023/A:1023331212247.
Vimal, K. E. K., & Vinodh, S. (2013). Development of checklist for evaluating sustainability characteristics of manufacturing processes. International Journal of Process Management and Benchmarking, 3(2), 213-232. http://dx.doi.org/10.1504/IJPMB.2013.057726.
Woerd, F. D., & Brink, T. (2004). Feasibility of a Responsive Business Scorecard: a pilot study. Journal of Business Ethics, 55(2), 173-186. http://dx.doi.org/10.1007/s10551-004-1900-3.
World Commission on Environment and Development – WCED. (1987). Our common future. Oxford: Oxford University Press.
Zamcopé, F. C., Ensslin, L., & Ensslin, S. R. (2012). Development of a model for corporate sustainability assesment. Production, 22(3). http://dx.doi.org/10.1590/S0103-65132012005000048.
Zhou, L., Tokos, H., Krajnc, D., & Yang, Y. (2012). Sustainability performance evaluation in industry by composite sustainability index. Clean Technologies and Environmental Policy, 14(5), 789-803. http://dx.doi.org/10.1007/s10098-012-0454-9.
Zopounidis, C., & Doumpos, M. (2002). Multicriteria classification and sorting methods: a literature review. European Journal of Operational Research, 138(2), 229-246. http://dx.doi.org/10.1016/S0377-2217(01)00243-0.
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