To startoff, after examining Robert S. Kaplan and David P. Norton business articlecalled, The Balanced Scorecard: Measures That Drive Performance, it is withouta doubt that the main argument is based upon how businesses try to uncover workersperformance in hope to gain a profit.
In continuation, the authors go on toexplain that in order for a company to succeed in the future, they must incorporatethe four perspectives, hence the term The Balanced Scorecard. Furthermore, in thearticle, the author states the four perspectives to be, “how do customers seeus (customer perspective), what must we excel at (internal perspective), can wecontinue to improve and create value (innovation and learning perspective), howdo we look to shareholders (financial perspective)” (Kaplan, Norton 174). This quotestates, that if a manager or a business take these four perspectives intoconsideration when growing their business, it allows them to identify areasthat need improvement. Through the process, these perspectives will allow businessesto become successful because they will be recognized by the community as a fairand loyal company. Overall, business should follow the balance scorecard inorder to grow and prosper their businesses. However, in Peter Bakker’s article, howaccounting can save the world, he explains that businesses should create anaccounting format that does not only focus on the financial capital, but aswell as the social capital.
In continuation, baker goes on to explain what businessview 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 onfinancial capital. In order to address current economic crises in a systematicway, 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 thisstatement, he explains that business need to stop focusing on getting somethingin return through capital, but to focus on what they can give back to theenvironment.
To conclude, businesses should look at both the financial andsocial capitals and see how they can benefit them both at the same time. To conclude, in Korten’s novel, WhenCorporations Rule the World, he discusses how corporation are leading in thecategories of financial and economic. Furthermore, in chapter 13 and 14 of hisnovel, he explains that corporation only purpose and goal is to create a profitand maximize it, as society will be the ones to pay for it in the near future. Atone point in the novel, Korten explains that corporation derive in the growthof economy’s health, however, “ina healthy economy, most investment is productive. The global economy is not,however, a healthy economy.
In all too many instances, it rewards extractiveinvestors who do not create wealth but simply extract and concentrate existingwealth” (Korten 187). I agree in what Korten is explaining in this quote as businessesdo generate a lot of profit over the year, as it can be a problem for consumerif they do not have enough money. In other words, Korten explains thatbusinesses only focus on profit and increasing their wealth as oppose to havinga healthy economy.