DEVELOPING AN ESG-BASED BALANCED SCORECARD METHODOLOGY FOR STRATEGIC MANAGEMENT ACCOUNTING
Abstract
The increasing significance of environmental, social, and governance (ESG) factors is changing the requirements for contemporary strategic management and performance measurement. Organizations are increasingly evaluated not only according to profitability and financial growth but also according to their environmental impact, treatment of employees and other stakeholders, governance quality, risk management, transparency, and long-term value creation. This development creates a need for management accounting systems capable of incorporating ESG information into strategic planning, performance evaluation, resource allocation, and managerial decision-making. Consequently, Strategic Management Accounting (SMA) is increasingly expected to provide forward-looking financial and non-financial information that supports both economic and sustainability objectives.
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