ABSTRACT

This chapter explains how to incorporate an environmental impact perspective into one's strategy map and balanced scorecard, and how to capture measure and manage environmental and social impact on their balanced scorecard. The importance of an organization's impact on the environment and the demands for environmental management reporting has made it easy to argue for a dedicated environmental impact perspective in the balanced scorecard. For many organizations, their environmental impact is only a part of their wider corporate social responsibility (CSR) agenda. The CSR agenda includes the organization's impact on its community and the parts of society it interacts with. It can include charitable and philanthropic work. The emphasis in this perspective is the impact of the organization's activities on the environment and on those stakeholders affected by the organization's wider CSR activities. The perspective captures the impact. The organization's actual environmental and CSR activities should be embedded within the objectives in the lower perspectives of the strategy map.