To should follow the balance scorecard in order

To start
off, after examining Robert S. Kaplan and David P. Norton business article
called, The Balanced Scorecard: Measures That Drive Performance, it is without
a doubt that the main argument is based upon how businesses try to uncover workers
performance in hope to gain a profit. In continuation, the authors go on to
explain that in order for a company to succeed in the future, they must incorporate
the four perspectives, hence the term The Balanced Scorecard. Furthermore, in the
article, the author states the four perspectives to be, “how do customers see
us (customer perspective), what must we excel at (internal perspective), can we
continue to improve and create value (innovation and learning perspective), how
do we look to shareholders (financial perspective)” (Kaplan, Norton 174). This quote
states, that if a manager or a business take these four perspectives into
consideration when growing their business, it allows them to identify areas
that need improvement. Through the process, these perspectives will allow businesses
to become successful because they will be recognized by the community as a fair
and loyal company. Overall, business should follow the balance scorecard in
order to grow and prosper their businesses.

 

            However, in Peter Bakker’s article, how
accounting can save the world, he explains that businesses should create an
accounting format that does not only focus on the financial capital, but as
well as the social capital. In continuation, baker goes on to explain what business
view capitalist as he states, “Someone who puts capital to work, and wants something back.

But where we’ve lost the plot is that we only demand — and manage — a return on
financial capital. In order to address current economic crises in a systematic
way, we must begin to demand a return on social and natural capital as well.

That’s where we need to change the rules of the game” (Bakker). Through this
statement, he explains that business need to stop focusing on getting something
in return through capital, but to focus on what they can give back to the
environment. To conclude, businesses should look at both the financial and
social capitals and see how they can benefit them both at the same time.

 

            To conclude, in Korten’s novel, When
Corporations Rule the World, he discusses how corporation are leading in the
categories of financial and economic. Furthermore, in chapter 13 and 14 of his
novel, he explains that corporation only purpose and goal is to create a profit
and maximize it, as society will be the ones to pay for it in the near future. At
one point in the novel, Korten explains that corporation derive in the growth
of economy’s health, however, “in
a healthy economy, most investment is productive. The global economy is not,
however, a healthy economy. In all too many instances, it rewards extractive
investors who do not create wealth but simply extract and concentrate existing
wealth” (Korten 187). I agree in what Korten is explaining in this quote as businesses
do generate a lot of profit over the year, as it can be a problem for consumer
if they do not have enough money. In other words, Korten explains that
businesses only focus on profit and increasing their wealth as oppose to having
a healthy economy.