For a business that desires to be a responsible and profitable enterprise, students are required to construct a balanced scorecard that reflects the triple bottom line – economic, social and environmental aspects. The scorecard will specify critical success factors, performance indicators, targets, and appropriate initiatives. Details of the assignment are available on the unit’s WebCT site. Due date is seven days after the final class by Email attachment. One student in each group should submit a copy via Email and must CC to other group members on that same Email. The group size is a maximum of 2 (two). See assessment notes A and C in this unit guide
a. When your group presents its case study for assessment 2, you should compare the economic, social and environmental reporting of ‘your’ company to the Procter and Gamble Sustainability Report example. On the basis of the sustainability reports, which company (yours or P&G) is better on what quality dimensions (comprehensiveness and accessibility) of sustainability reporting and why? Does your company add a lot of extra value to the quality of their reporting (beyond the PDF file) due to additional information contained on their website? Note: the GRI index effectively consists of 4 main headings (see below): General, Economic, Environmental and Social – social has 4. Your analysis will concentrate on the economic, environmental and social performance information.

GRI INDEX:
A. GENERAL
1. Strategy and Analysis
2. Organizational Profile
3. Report Parameters
4. Governance, Commitments,
and Engagement 22

B. ECOMOMIC
5. Economic 25

C. ENVIRONMENTAL
6. Environmental 27

D. SOCIAL
7. Labor Practices and Decent Work 30
8. Human Rights 32
9. Society 33
10. Product Responsibility 35


ASSESSMENT NOTE C

Additional information and suggestions for assessment 3 – Gekko Eco Hotels (GEH)

As a ‘up and coming’ manager in GEH, your ability to take a broad view of the organisation and work well in multidisciplinary teams has been noted – and you have appointed to overhaul the performance management system.
• GEH is considering the possibility of constructing a Balanced Scorecard, and has settled on a structure of 6 perspectives
• GEH is in the business of owning and running hotels with an ‘eco’ theme – meaning they must be environmentally and socially responsible, but capable of making a good profit in the medium to long term. There are 3 aspects to the business: eco-sleep; eco-eats; and eco-tours

Some contextual notes
i. GEH has sold a large issue of shares, and has raised sufficient capital to go on a major expansion program
ii. A key financial focus is sales - GEH is interested in revenue growth, not short term profit, for the next three years.
iii. GEH is interested in tracking the relationship between operating costs and revenue – although it is acknowledged this may suffer as they go through a growth and learning phase
iv. GEH does not want more than 70 cents debt per dollar of assets – since this is the limit that has been set by its bankers
v. GEH acknowledges that many of the sites for its hotels are in communities where women and people with disabilities have been at particular disadvantage in relation to employment
vi. GEH has concluded that it must continually develop new services/products’ and improve processes, and this should be done using the ideas and experiences of its customers and suppliers
vii. GEH notes that it cannot just say that the food and drink served in its eco-eats restaurants provides a ‘healthy’ option, these products must be healthy in a discernible way
viii. GEH notes that small businesses have had trouble ‘getting off the ground’ in many of its current and potential locations – and those that have started up have been constrained in their ability to grow
ix. In villages surrounding the cities in which GEH operates, there is often a very poor water supply from wells or polluted streams
x. GEH’s business model relies on outsourcing of all laundry and cleaning services
xi. GEH purchases and runs the fleet of vehicles for its eco-tours
xii. GEH is determined to effectively use internet technologies (e.g. social media) to drive its growth

Required
Prepare a draft BSC for discussion by senior management - one that shows a holistic and balanced approach to performance measurement and management. The format should follow the style:
‘High-level’ objectives and associated CSFs > Measures > Targets > Initiatives

Steps (see format example below)
• Decide on your perspectives. Maybe start with the conventional 4 (financial, customers, internal processes and learning & growth); or 5 (e.g. ABB: financial, customers, internal processes, employees and innovation); or more (by adding a separate social and/or environmental perspective)
• Decide on your ‘High-level’ objectives for each perspective and associated CSFs. Note your specific concrete objectives as an action (words like: improve, promote, provide, develop; get; support; find). Note that each ‘CSF’ is an ‘objective’ – but a lower-level one). Usually 3 to 5 high-level objectives for each perspective is deemed about right.
• Decide one or more measure that articulates each CSF
• Where possible, propose targets for a measure. Any targets are to be seen as a starting point for further investigation and debate – you may find some data in readings to use as proposed benchmarks
• Indicate the nature of 1 or 2 initiatives that you would propose to support each of your prioritized CSFs