Managing sustainable development performance: a visual path?

Citation

Rinaldi, L. (2009), "Managing sustainable development performance: a visual path?", Journal of Accounting & Organizational Change, Vol. 5 No. 1. https://doi.org/10.1108/jaoc.2009.31505aad.002

Managing sustainable development performance: a visual path?

Article Type: Doctoral research abstracts From: Journal of Accounting & Organizational Change, Volume 5, Issue 1

Purpose – The research explores the relationships between sustainable development performance and sustainability by the means of stakeholders. Its aim is contribute to the sustainability accounting literature investigating the extent to which current performance measurement system could assist in planning and controlling sustainability, also suggesting a visual framework to support managing sustainability in practice.Design/methodology/approach – It is argued that if development is not sustainable when any one of the economic, social and environmental principles is not adhered to, than performance measurement systems based on a neoclassical economic vision are inadequate for sustainability management. Among organizations that recognize that a multidimensional perspective is necessary to integrate stakeholder needs into a long-term value creation process, only in a few cases are performance measurement systems able to integrate financial indicators with social and environmental metrics. The research first discusses the sustainability concept, outlining the theoretical background behind the idea of sustainability and critically analysing the contradictions involved in using a traditional management and control system for managing sustainability. While reviewing the literature, the study critically evaluates performance measurement system contributions designed to assess performance of organisations at a level beyond just the interests of the shareholders, suggesting a view as to how implementation of management accounting for sustainability could progress. In order to internalize the concept of sustainability an evolution to existing managerial instruments is needed, given the necessity to adapt to a more complex business management style as a result of the multidimensionality of the concept. The main issues considered are the following: stakeholder inclusivity; stakeholder engagement; linkage of stakeholders’ needs with day-to-day management activities; and integration sustainability principles into a framework capable of assessing multidimensional performance. Therefore, to internalize the concept of sustainability, environmental, economic and social aspects cannot be linked in a hierarchical manner.Findings – Drawing on Rawls’ theory of justice, this research argues that in order to achieve sustainability a performance measurement system should inform management when a gain of utility achieved by one stakeholder occurs at the expenses of another. Finally, to support managing sustainability in practice, this exploration is informed by advancing a performance measurement system that offers a visual representation of the degree of sustainability. The framework is based on two managerial instruments that organize a set of primary and secondary measures, connected with stakeholder satisfaction, that may be able to detect and articulate both win-win and trade-off situations.Originality/value – It is concluded that traditional performance measurement system offer little in the way of opportunity for facilitating sustainability management and increasing corporate accountability. The research also raises practical and theoretical issues upon the effective implementation of sustainability performance measurement systems in specific organisations, leading to case study analysis on the likely reverberation of such implementation upon organisational activities.

Keywords: Sustainable development, Justice, Performance measures

Research type – Qualitative researchInstitution – University of London, Surrey, UKContact e-mail – leonardo.rinaldi@rhul.ac.uk

Leonardo RinaldiSchool of Management, Royal Holloway,University of London, Surrey, UK