MHN125223 Managing Sustainable Business Essay Sample

Introduction Of Critical Analysis, Strengths, Weaknesses And Applicability Of Each Topic

The Balanced Scorecard

The balanced scorecard (BSC) is a performance measuring as well as management tool that has acquired significant traction in a variety of industries, involving government. The BSC is a structure that Local Authority in Scotland may use to better connect their operations with their tactical objectives and improve their overall performance. The purpose of this critical investigation is to better comprehend the BSC's relevance by delving into its advantages and disadvantages within the framework of local government.

Benefits of the BSC

• Compliance with Strategic Objectives- The BSC is a flexible framework that enables local government entities to convert their tactical objectives into quantifiable, tangible outcomes. This coherence guarantees that the company's activities are in line with its goal and vision, which encourages effective resource management.
• All-inclusive Performance Assessment- A variety of performance indicators are included in the BSC, such as those related to finances, customers, internal operations, and development as well as learning (Mio, 2022). This all-encompassing strategy guarantees that the local government evaluates its operations from several angles, allowing for a holistic perspective.
• Openness and Communication- Throughout the company, the BSC promotes openness and communication. It facilitates a common knowledge of the major goals, which makes it simpler for staff members at all stages to add to the accomplishment of these objectives.
• Flexibility- The structure of the BSC is flexible and may be tailored to meet the particular requirements and objectives of Scottish local authorities. In the public sector, where targets and objectives can fluctuate over time owing to changes in government priorities as well as policies, this versatility is especially helpful.

Drawbacks of the BSC

• Complexities- The BSC's implementation can be difficult as well as time-consuming. To create and manage the scorecard, a substantial time, asset, and training commitment is needed. This intricacy can be problematic in local government settings where assets are sometimes scarce.
• Overreliance on Quantitative Measures- In the public sector, the BSC's primary reliance on quantitative measures might be constraining (Sartor, 2019). Properly quantifying certain crucial elements of local authority efficiency, including social effects and community health, can be difficult and may result in an inadequate evaluation.
• Threat of sub-optimization- Sub optimization, in which departments or individuals prioritize their ambitions at the expense of more general organizational goals, may occasionally arise from concentrating on particular performance metrics. This can obstruct cooperative efforts and comprehensive making choices in local government.
• Resistance to change- A change in the culture of the company is frequently necessary for the BSC to be implemented. Workers used to conventional performance review procedures may be resistant to change, which might be a challenge for local authorities.

The application of institutional theory to Scottish local government may offer insight into the implementation and utilization of the BSC. According to institutional theory, organizations follow the rules and principles of the institutions in which they operate. In this instance, the public sector's dominant standards and practices have an impact on local authorities. One way to interpret the implementation of the BSC is as a reaction to exterior institutional forces, including government regulations for transparency and achievement monitoring (Gazi, 2022). The goal of local authorities' alignment with these outside expectations is to get funding and establish credibility. Nonetheless, this theory also emphasizes that organizations could implement particular practices because they are viewed as acceptable in their institutional setting rather than necessarily due to they are successful. In the context of the BSC, governments may use it even when it doesn't entirely meet their particular requirements and issues to comply with the standards in place. This might lead to a cursory implementation of the BSC, treating it more as a symbolic instrument than a functional performance administration system.

Balance scorecard framework is a useful framework which helps Scottish local authority in measuring the performance. Hence, it is important to acknowledge both its advantages and disadvantages, which are shaped by Institutional theory. For successful performance oversight and execution of services, local governments should strike a balance between conformance and personalization.

Environment management systems iso140001

Local administrations in Scotland are essential in encouraging environmentally friendly practices in a time of environmental difficulties and growing concerns for sustainability. Organizations are finding that the ISO 14001 Environmental Management Systems (EMS) is a useful instrument for handling their environmental obligations. It will examine the advantages and disadvantages of ISO 14001 in the setting of local government throughout this analysis.

Benefits of ISO 14001

• Organized Environmental Structure- Local governments may manage the environment within a systematic framework due to ISO 14001. Organizations may use this framework to help them properly identify, prioritize and mitigate environmental risks as well as consequences. This is especially advantageous for local government entities that might lack a clear strategy for handling ecological problems.
• Improved Credibility and Image- An authority's dedication to ecological responsibility may be shown in its ISO 14001 (Muktiono, 2022). In the eyes of stakeholders, residents, and constituents, this improves its standing and image. This may be a very useful tool for local governments at a time when ecological problems are of the utmost importance.
• Cost-effectiveness and efficiency of resources- Implementing ISO 14001 frequently results in increased efficiency of resources. Local governments may save money if they become more conscious of how they use resources and produce trash. This is a huge benefit in the public sector, where budgetary restrictions are typical.
• Legal Adherence and Risk Reduction- By lowering the possibility of legal infractions, ISO 14001 assists local authorities in adhering to ecological legislation. By doing this, the community's confidence as well as the local government's image is protected against financial consequences as well.

Drawbacks of ISO 14001

• Intensive in Resources- It can take a lot of resources to set up and upkeep ISO 14001. There are expenses associated with certification, training and continuous compliance checks. These costs can be prohibitive for smaller local governments, which might prevent them from participating completely.
• Emphasis on Social Sustainability is restricted- The primary focus of ISO 14001 is sustainable development, which may overlook the equally important aspect of social sustainability. These are interrelated components of local administration, particularly in Scotland. Also, the standard's limited emphasis on environmental problems might pose a constraint.
• Administrative Expenses- The considerable paperwork and maintaining records required by ISO 14001 results in administrative expenses (Bravi, et.al, 2020). It may be difficult for the local governments to strike a balance between these demands as well as their primary duties, particularly in situations when staffing is few.
• Voluntary observance- The voluntary nature of ISO 14001 means that compliance is achieved by self-regulation. Although, this latitude has its advantages, it also might lead to an absence of accountability and compliance. Since local governments could not be held accountable for their actions or face fines for noncompliance.

Understanding the procedure of ISO 14001 acceptances inside local authorities as the absorption of a novel EMS, the diffusion of innovations theory provides perspectives on this acceptance. Local authorities operate as the adopters in this situation, and several important factors affect the level of adoption. Initially, the idea of mutual benefit is essential. If local authorities see ISO 14001 as offering a significant benefit over their current ecological management practices, they are likely to implement it. ISO 14001 may be especially attractive since it can lead to increased sustainability, lower expenses, and a better reputation. All of which are advantages that meet the standards and goals of the organization.

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Due to ISO 14001's requirement for smooth integration with local authorities' needs for operation, standards, and values, compliance is an equal importance element. For adoption to be effective, it must endorse its current procedures and be in line with its objectives for sustainability (Brogi, 2019). Conversely, the difficulty of adopting ISO 14001 may act as a deterrent. If the system is too complex or requires too many resources, local authorities could be hesitant to implement it, which could hinder its adoption rate.

Moreover, the concepts of observability as well as trialability are applicable. If local government agencies can test ISO 14001 on a lesser scale or see other organizations that have successfully implemented it, they could be more encouraged to do the same. With this method, they may evaluate its viability and efficacy before deciding to sign on to its broad implementation. In conclusion, this theory offers an approach to comprehending the variables affecting local governments' acceptance of ISO 14001. These variables, in turn, affect the scope and speed of ISO 14001's execution in this particular context.

Benchmarking

Benchmarking has become a useful tool for Scottish local government in terms of performance evaluation, service delivery enhancement, and openness. The objective of this study is to examine the benefits and drawbacks of benchmarking in a setting of local governments, using the Stakeholder Theory to throw light on its uptake and effects.

Benefits of Benchmarking

• Enhancement in Performance- Through benchmarking, local governments can assess how they perform in relation to competitors and outstanding entities. This facilitates the identification of best practices and opportunities for development that can result in improved efficacy, productivity, as well as service delivery.
• Making Decisions Based on Data- Benchmarking offers metrics as well as statistics to local authorities so they may make well-informed decisions (Kounev, 2020). Local authorities may make better informed choices about their governance as well as service delivery through having a grasp on pertinent and trustworthy data.
• Responsibility and Openness- Benchmarking encourages local government transparency. local governments are encouraged to be more accountable to their stakeholders as well as constituents by the openness of benchmark comparisons between efficiency and performance.
• Adoption of Innovative and Best Practices- Through benchmarking, local government can benefit from other people's innovations and triumphs. Through the adoption of best practices from high-achieving entities, local governments can stimulate innovation as well as ongoing enhancement.

The drawbacks of benchmarking

• Data Accessibility and Quality- The quality and accessibility of data have a major impact on benchmarking's efficacy. Getting reliable and consistent information to make insightful comparisons can cause difficulties for local authorities.
• Variations in Contextual- Benchmarking frequently ignores the contextual variations among local governments (Marcus, et.al, 2020). Straight-up comparisons are difficult since variables such as population density, location, and economic circumstances can have a big influence on efficiency.
• Immediate Focus- Often benchmarking encourages an immediate concentration on hitting benchmarks and making quick changes. This could take focus away from sustainability as well as future planning.

When Stakeholder Theory is applied to the field of benchmarking in local government, it becomes clear how complex the network of impacts from different stakeholders is in the acceptance and implementation of benchmarking programs (What Is Stakeholder Theory? Benefits, Challenges & Application, 2023). A wide range of stakeholders, such as residents, elected politicians, governmental bodies, as well as service beneficiaries, are inherently responsible to local authorities. As a tool for strategy, benchmarking helps to meet the expectations and demands of these various groups.

Firstly, citizens are among the most important stakeholder groups in municipal government. Local government agencies can demonstrate their commitment to providing high-quality services effectively by adopting benchmarking. This strategy satisfies the needs and expectations of its constituents, which in turn increases their level of satisfaction as well as confidence in the local government (Lueckmann, et.al, 2021). Accountable monitors of local government, elected officials are essential stakeholders. To obtain the necessary data for creating defensible choices and carrying out their responsibility role, they rely on benchmarking. Providing accountability and openness so that elected authorities can evaluate the efficacy of the government with the help of information and insights obtained from benchmarking.

As part of its accountability procedures, government bodies, involving monitoring as well as regulatory bodies. this may require local authorities to participate in benchmarking. More highlighting the value of benchmarking, adherence to these regulations is not merely necessary but also helpful in preserving good ties with these governmental organizations. Finally, there are significant benefits that service recipients those who ultimately receive local government services gain by benchmarking. By comparing their efficacy to that of other regions or their peers, local authorities can find places for development and pursue excellence due to this practice. In this situation, benchmarking positively impacts service recipients as it may result into improvement in the efficacy of services.

References

Books and Journals

• Bravi, L., Santos, G., Pagano, A. and Murmura, F., 2020. Environmental management system according to ISO 14001: 2015 as a driver to sustainable development. Corporate Social Responsibility and Environmental Management, 27(6), pp.2599-2614.
• Brogi, S. and Menichini, T., 2019. Do the ISO 14001 Environmental Management Systems Influence Eco-Innovation Performance? Evidences from the EU Context. European Journal of Sustainable Development, 8(4), pp.292-292.
• Gazi, F., Atan, T. and K?l?ç, M., 2022. The assessment of internal indicators on the balanced scorecard measures of sustainability. Sustainability, 14(14), p.8595.
• Kounev, S., Lange, K.D. and Von Kistowski, J., 2020. Systems Benchmarking. Springer International Publishing.
• Lueckmann, J.M., Boelts, J., Greenberg, D., Goncalves, P. and Macke, J., 2021, March. Benchmarking simulation-based inference. In International conference on artificial intelligence and statistics (pp. 343-351). PMLR.
• Marcus, R., Kipf, A., van Renen, A., Stoian, M., Misra, S., Kemper, A., Neumann, T. and Kraska, T., 2020. Benchmarking learned indexes. arXiv preprint arXiv:2006.12804.
• Mio, C., Costantini, A. and Panfilo, S., 2022. Performance measurement tools for sustainable business: A systematic literature review on the sustainability balanced scorecard use. Corporate social responsibility and environmental management, 29(2), pp.367-384.
• Muktiono, E. and Soediantono, D., 2022. Literature Review of ISO 14001 environmental management system benefits and proposed applications in the defense industries. Journal of Industrial Engineering & Management Research, 3(2), pp.1-12.
• Pavlova, A. and Sikorskaya, T., 2023. Benchmarking intensity. The Review of Financial Studies, 36(3), pp.859-903.
• Sartor, M., 2019. The balanced scorecard. In Quality management: Tools, methods, and standards (pp. 55-76). Emerald Publishing Limited.

Online

• What Is Stakeholder Theory? Benefits, Challenges & Application. 2023. [Online]. Available through: < https://www.cascade.app/blog/stakeholder-theory>