Sustainability Balanced Scorecard and Management Communication in Evaluating A Company’s Performance

  • Desak Nyoman Sri Werastuti Undiksha


This study examines the effectiveness of Sustainability Balance Scorecard (SBSC) and management communication in evaluating company performance. Furthermore, to determine the role of the use of high management communication and the use of the sustainability balanced scorecard in increasing the manager's bonus award decisions. Laboratory experiment was carried out on 94 students of accounting, Faculty of Economics, Ganesha University of Education. Results show that the use of the SBSC influences in evaluating performance. In addition, environmental perspective and the high level of management communication have a significant influence on the decision of managers on bonus allocation.

Keywords:   environmental perspective, sustainability balanced scorecard, management communication, performance evaluation. 


Download data is not yet available.


Abernethy, M. A., & Lilis, A. M. (1998). Complementarities in control system design: a test in hospitals.
Anand, M., Sahay, B. S., & Subhashish, S. (2005). Balanced Scorecard in Indian Companies.Vikalpa. Vikalpa.
Andrew Caulfield, P. (2013). The evolution of strategic corporate social responsibility. EuroMed Journal of Business, 8(3), 220–242.
Andrew, E., & Robert, A. F. (2013). Corporate culture and Job Satisfaction. Journal of Applied Psychology Research, 12, 63–77.
Anthony, N. R., & Govindarajan, V. (2007). Management Control System (12th ed.). McGraw Hill International Edition.
Bornhorst, T., Ritchie, J. R. B., & Sheehan, L. (2010). Determinants of tourism success for DMOs & destinations: An empirical examination of stakeholders’ perspectives. Tourism Management, 31, 572–589.
Clarkson, P., Li, Y., & Gardon, R. (2004). The Market Valuation of Environmental Capital Expenditures by Pulp and Paper Companies. The Accounting Review.
D’Aprile, G., & Mannarini, T. (2012). Corporate social responsibility: a psychosocial multidimensional construct. Journal of Global Responsibility, 3(1), 48–65.
Dellaportas, S. K., Gibson, R., Alagiah, M., Hutchionson, P., Leung, D., & Homrigh, V. (2005). Ethics, Governance & Accounting: A Professional Perspective. John Wiley & Son Australia Ltd, Australia.
Dias-Sardinha, I., & Reijnders, L. (2005). Evaluating Enviromental and Social Performance of Large Portuguese Companies: a BSC Approach. Business Strategy and The Enviroment.
Dias-Sardinha, I., & Reijnders, L. (2016). Developing sustainability balanced scorecards for environmental services: a study of three large Portuguese companies. Environ. Qual. Manag., 16(4), 13-34.
Dias-Sardinha, I., Reijnders, L., & Paula, A. (2002). From Environmental Performance Evaluation to Eco-Efficiency and Sustainability BSC. Environmental Quality Management.
Dinar, A. S. (2014). Hubungan Komunikasi Atasan Bawahan yang Efektif dan Kompensasi Langsung dengan Komitmen Organisasional Melalui Kepuasan Kerja Sebagai Variabel Intervening: Studi Persepsian pada Karyawan BPR di Bawah Grup Saudara Wilayah Jawa Tengah dan DIY. Universitas Gadjah Mada.
Figge, F., Hahn, T., Schaltegger, S., & Wagner, M. (2012). The sustainability balanced scorecard-linking sustanability management to business strategy. Business Strategy and the Environment, 11(5), 269-284.
Franz, R. S., & Petersen, H. L. (2012). Role of business: a portfolio model of corporate social responsibility. Journal of Global Responsibility, 3(1), 83–110.
Freeman, R. E. (1984). Stakeholder Theory of The Modern Corporation. General Issues in Business Ethics.
Freeman, R. E., & Robert, A. P. (2002). Stakeholder Theory: A Libertarian Defense. Business Ethics Quarterly.
Ghosh, D., Joanna, L. Y. H., & Hiroshi, M. (2010). Strategy, Incentive Design and Performance: Empirical Evidence. Management Accounting Section.
Handoko, J. (2009). Debiasing Outcome Effect Dalam Penilaian Kinerja: Suatu Studi Eksperimen. Simposium Nasional Akuntansi XII.
Hansen, D. R., & Mowen, M. M. (2007). Management Accounting (8th ed.). South-Western,USA: Thomson Learning.
Henri, J. F., & Journeault, M. (2010). Eco-Control : The Influence of Management Control System on Environmental and Economic Performance. Accounting Organizations and Society.
Hoque, Z., & James, W. (2000). Linking Balanced Scorecard Measures to Size and Market Factors: Impact on Organizational Performance. Journal of Management Accounting Research.
Jones, T. M., & Wicks, A. C. (2010a). Convergent Stakeholder Theory. Academy of Management Review, 24(2), 206–222.
Jones, T. M., & Wicks, A. C. (2010b). Convergent Stakeholder Theory. Academy of Management Review, 24(2), 206–222.
Kaplan, R., & Norton, D. (2001). The Strategy Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business School Press, Boston, MA.
Kaplan, R. S., & Norton, D. P. (1992a). The balanced scorecard-measures that drive performance. Harvard Business Review, 70(1), 71–79.
Kaplan, R. S., & Norton, D. P. (1992b). The BSC Measure That Drive Performance. Harvard Business Review.
Kaplan, R. S., & Norton, D. P. (1996). Using BSC as a Strategic Management System. Harvard Business Review.
Kaplan, R. S., & Priscilla, S. W. (2009). The Judgmental Effect of Management Communications and a Fifth BSC Category on Performance Evaluation. Behavioral Research in Acccounting, 21(2), 37–56.
Kren, L. (1992). Budgetary Participation and Managerial Performance: The Impact of Information and Environmental Volatility. The Accounting Review, 67(3).
Lau, C. M., & Sholihin, M. (2005). Financial and Nonfinancial Performance Measure: How do they affect job satisfaction? The British Accounting Review, 37(2).
Lipe, M. G., & Salterio, S. (2000). The BSC: Judgmental Effect of Common and Unique Performance Measure. The Accounting Review, 75(3).
Malina, M. A., & Frank, H. S. (2001). Communicating and Controlling Strategy: An Empirical Study of Effectiveness of The BSC. Journal of Management Accounting Research, 13(1).
Michelon, G., Boesso, G., & Kumar, K. (2013). Examining the link between strategic corporate social responsibility and company performance: An analysis of the best corporate citizens. Corp. Soc. Responsib. Environ. Manag., 20, 81–94.
Mooraj, E. (1999). The Balanced Scorecard: A Necessary Good or An Unnecessary Evil. European Management Journal, 17(5).
Nahartyo, E. (2013). Desain dan Implementasi Riset Eksperimen (2nd ed.). . UPP STIM YKPN, Yogyakarta.
Nwanji, T. I., & Howell, K. E. (2014). The Stakeholder Theory in the Modern Global Business Environment. International Management Journals, 1(1).
Schaltegger, S., & Burritt, R. (2006). Corporate Sustainability Accoounting a Catchphrase for Compliant Corporations or a Business Decision Support for Sustainability Leaders? Sustainability Accounting and Reporting.
Schaltegger, S., & Burritt, R. (2015). Business cases and corporate engagement with sustainability. Differentiating ethical motivations. Journal of Business Ethics.
Scharf, E. R., Fernandes, J., & Kormann, B. D. (2013). Corporate social responsibility to build strong Brazilian bank brand. International Journal of Bank Marketing.
Shields, M. D., & Young, S. M. (1993). Antecedents and Consequences of Participative Budgeting: Evidence on the Effect of Asymmetrical Information. Journal of Management Accounting Research.
Tandon, A. K., Mishra, S. K., & Singh, E. (2011). What Discriminates the Prospective Manager’s Attitude Towards Corporate Social Responsibility? An Insight From Pyschological Variables. Journal of Corporate Governance, 10.
Uzma, S. H. (2016). Embedding corporate governance and corporate social responsibility in emerging countries. International Journal of Law and Management, 58(3), 299–316.
How to Cite
SRI WERASTUTI, Desak Nyoman. Sustainability Balanced Scorecard and Management Communication in Evaluating A Company’s Performance. Jurnal Ilmiah Akuntansi dan Bisnis, [S.l.], v. 16, n. 1, p. 45-59, june 2020. ISSN 2303-1018. Available at: <>. Date accessed: 02 mar. 2021. doi: