Corporate and Government Accountability for Sustainable Environments: The Balanced Scorecard Approach

This paper presents some views for corporations and governments regarding how to cope with rapid changes in globalization and sustainable environments that have begun to affect the economy, society, competition, and technology. Shifts toward a sustainable environment have become facts of life for corporations as well as for governments, thus they must accept it and deal with it. Corporations can utilize the Balance Scorecard Approach to control how they could achieve a Pareto Optimality (or at least to achieve a Pareto Improvement) for themselves and the society as a whole. Meanwhile governments can make use of the Balance Scorecard Approach to determine what kind of incentives should be given to corporations (such as a tax relief) or what kind of penalties should be enforced on corporations (such as fines and/or rescinding a corporation's right to operate) in order for governments to achieve a sustainable environment for all living and future creatures of the world.