It's Time to Rebalance the Scorecard

The headlines have been frequent and the allegations of misdeeds numerous. Major corporations and their senior managers have violated shareholder and societal trust. Sometimes they have even violated the law. Despite well-intentioned improvements in the operating roles for businesses, these improvements fail to focus on the bottom-line motivation of the individual. When one examines the causes of unethical and illegal behaviors, it becomes evident that several key factors played a role: 1. the business climate of that time, 2. human nature, 3. the societal climate, 4. the competitiveness of the global business environment, and 5. the nature of competitive organizations. Each of these factors are examined. It is proposed that at a minimum a social responsibility performance perspective become part of the business scorecard. If firms want to succeed in ethical and social performance, then even these critical areas must be included in the process that links strategy to individual performance.