The Problem of Designing and Implementing Sustainability Balanced Scorecard: An Empirical Study on the Institution of Cement of Ain Lakbira-Algeria

Abstract

The performance and its evaluation have always been a major task and problematic for management. This evaluation started with simple models and financial indicators. Then it developed to the use of “the balanced scorecard” which take into consideration four perspectives rather than just the financial one. Despite its advantages, the balanced scorecard has some criticism in that it ignores some aspects, which led to the design of “Sustainability Balanced Scorecard”. This study attempts to implement Sustainability Balanced Scorecard in the Institution of Cement of Ain Lakbira – Algeria, by adding the societal and environmental dimension to this card which allowed us to achieve a set of results. Despite the institution’s good financial performance during 2010, this was hiding a lower performance in other perspectives. The study recommends that the Institution of Cement of Ain Lakbira needs to apply Sustainability Balanced Scorecard in order to improve the level of its overall performance, and not being misled by some temporary financial results that will disappear once the quasi-monopolistic situation experienced by the various cement institutions has disappeared.