Influence of business performance measurement systems and corporate sustainability concept to overal business performance: “save the planet and keep your performance”

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Technical university of Liberec, Czech Republic
Technická Univerzita v Liberci
Nowadays the dissatisfaction with only financial indicators has led to a focus on non-traditional areas of performance measurement as Balanced Scorecard, environment indicators and others. Moreover many recent studies has focused on the corporate sustainability concept and performance measurement interconnection. The aim of this paper is to identify the relationship between selected management tools and concepts of various development phases of strategic performance measurement systems to overall business performance measured by indicator ROE. Similarly the aim is to identify the relationship between the sustainability index and indicator ROE as a key aspect in terms of the current climate crisis. Our most important findings bring new information and knowledge for the strategic transformation from traditional business performance measurement system to strategic and sustainable performance measurement system. Specifically we found out that the BSC methodology has a demonstrable impact on the business performance. Also KPI system and orientation on the environment affect the performance of enterprises. In the case that companies do not have the knowledge information system as a complex system and do not take into account its implementation they tended to have a lower level of performance. This means that the BI knowledge information system has a major impact on business performance. Regarding to the corporate sustainability concept we can confirm that the direct moderate correlation is apparent between economic sub-index and also composite index of sustainable development and indicator of ROE. The connection of environmental and social sub-index separately to ROE had not been shown sufficiently. Based on results we can conclude that the index of sustainable development is a challenge for enterprises reflecting a growing need for change purely short-term oriented, consumerist patterns of production and consumption.
business performance, financial measures, non-financial measures, strategic performance measurement system, knowledge information system, sustainability measurement system