ESG Management and Corporate Sustainability Based on Balanced Scorecard

Abstract

The concept of sustainable development drives companies to pursue improving the efficiency and quality of ESG management. As a management tool for corporate strategy implementation, the balanced scorecard (BSC) was developed to achieve corporate profit maximization strategy, and with the globalization of sustainable development, more and more companies are trying to achieve value creation in environmental, social and governance. However, the inherent limitation of the traditional balanced scorecard - the lack of environmental and social responsibility perspectives - does not satisfy the strategic goal of companies to enhance their ESG management capabilities and ultimately achieve sustainable development. Therefore, this paper incorporates the concept of sustainable development on top of the traditional balanced scorecard to help enterprises carry out ESG management and further realize their long-term development goals.