Integrating Environmental and Social Sustainability Into Performance Evaluation: A Balanced Scorecard-Based Grey-DANP Approach for the Food Industry

Abstract

In addition to retaining high levels of customer satisfaction, sustainability of businesses is also heavily reliant on the efficiency of their internal and external processes. Continuous performance evaluations using key performance metrics to leverage operations are essential in maintaining a sustainable business while achieving growth objectives for revenue and profitability. Traditionally, companies have considered various financial criteria, quality characteristics, and targeted levels of service as their primary factors for performance evaluation. However, increasing environmental and social awareness and accompanying governmental legislations are now requiring companies to integrate these two aspects into their performance evaluations. With this motivation, this study proposes a Balanced Scorecard (BSC)-based approach combining Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Network Process (ANP) methodologies for performance evaluation. The grey system theory has been utilized in order to capture the vagueness and the uncertainty in decision making. To demonstrate the functionality of the approach, a case study is conducted on a U.S.-based food franchise. The results of the algorithm and a discussion elaborating on the findings are provided.

The Role of Sustainability Key Performance Indicators (KPIs) in Implementing Sustainable Strategies

“…The time period chosen for searching the most relevant articles was from 1999 to 2019. This period confirmed a steady increase in the emphasis on sustainability dimensions to support strategic management tools and therefore PMSs [23,24,31,32].…”

“…In the literature, several researchers used the SBSC in different fields in order to improve a company's strategy [19][20][21]. To this end, the tool can be considered very useful to capture different dimensions in strategy implementation and therefore could be an effective system to promote sustainability culture in businesses [22][23][24][25].…”

Impact of a Balanced Scorecard as a Strategic Management System Tool to Improve Sustainable Development: Measuring the Mediation of Organizational Performance through PLS-Smart

“…Moreover, the natural evaluation of strategic thinking that meets the expectations of the environment and society is a known sustainable strategic management system provided that its political and regulatory factors are stable to support the business environment [71,72]. Moreover, a number of researchers stress the potential gains and contribution of a balanced scorecard for sustainable development in order to have a competitive advantage [52,73,74]. They promulgated a balanced scorecard as a trigger for sustainable development.…”

Digital Technologies Towards Resource Efficiency in the Agrifood Sector: Key Challenges in Developing Countries

“…Implications of our findings and, at the same time, suggestions for future research imply the quantification of the proposed SD causal loop, which employs data for high priority developing regions. Particular focus should be attributed to the modelling of the social sustainability parameters captured in the modelling approach and assess the behaviour and performance of the agri-food system toward potential interventions [34]. This shall initially validate the theoretical approach and then strengthen the impact of any interference derived from such an analysis.…”