Evaluation of the Relationship between the Implementation of Sustainability Balanced Scorecard (SBSC) and the Stock Performance

Inhaltsverzeichnis (Table of Contents)

• 1. Introduction
  • 1.1 Background
  • 1.2 Research Question and Development of Hypotheses
  • 1.3 Problem Description
  • 1.4 Objectives
  • 1.5 Structure
• 2. Literature Review
  • 2.1 The Concept of Balanced Scorecard (BSC) as a Strategic Controlling Instrument
  • 2.2 The Definition of SBSC
  • 2.3 The Process of Formulating SBSC
  • 2.4 A Strategy Map for SBSC represents How the Organization Creates Value
  • 2.5 The Mechanics of SBSC according to Sustainability Strategy Types
    • 2.5.1 SBSC for the Clean Type (Sustainable Market Buffering Strategy)
    • 2.5.2 SBSC for the Efficient Type (Sustainable Cost Strategy)
    • 2.5.3 SBSC for the Innovative Type (Sustainable Differentiation Strategy)
    • 2.5.4 SBSC for the Progressive Type (Sustainable Market Development)
  • 2.6 The Five-Perspectives of SBSC
    • 2.6.1 Financial
    • 2.6.2 Customer
    • 2.6.3 Internal Business Process
    • 2.6.4 Learning and Growth
    • 2.6.5 Non-Market Perspective (Society & Natural Environment)
  • 2.7 The Concept of Indicators
    • 2.7.1 Financial Indicators
    • 2.7.2 Non-Financial Indicators
• 3. An Example of the Implementation of SBSC shown in Daimler's Annual- and Sustainability-Report
• 4. Methodology
• 5. A Statistical Analysis to examine the link between the Implementation of SBSC and the Stock Performance in Study Case of DAX 30 Companies Performance

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This master's thesis aims to theoretically evaluate the relationship between the implementation of a Sustainability Balanced Scorecard (SBSC) and stock performance, using DAX 30 companies as a case study from 2016 to 2018. The study seeks to understand how the adoption of SBSC, a framework integrating sustainability considerations into strategic management, influences a company's market valuation.

• The relationship between SBSC implementation and stock performance.
• The application of SBSC in different sustainability strategy types.
• The role of financial and non-financial indicators in SBSC.
• A comparative analysis of SBSC implementation across DAX 30 companies.
• The contribution of SBSC to sustainable corporate value creation.

Zusammenfassung der Kapitel (Chapter Summaries)

1. Introduction: This chapter introduces the research topic, providing background information on corporate sustainability and the Balanced Scorecard (BSC) framework. It then sets out the central research question and hypotheses, clearly defining the scope and objectives of the study. The chapter also outlines the structure of the thesis and highlights the methodology used to analyze the data. The problem description section contextualizes the research, emphasizing the growing importance of integrating sustainability into corporate strategies and measuring its impact on financial performance. The introduction is crucial in establishing the groundwork for the subsequent literature review and empirical analysis.

2. Literature Review: This chapter provides a thorough examination of existing literature on the Balanced Scorecard (BSC) and its extension to encompass sustainability considerations, the Sustainability Balanced Scorecard (SBSC). It defines the SBSC, explores the process of its formulation, and examines how a strategy map clarifies value creation. The literature review dives into different sustainability strategy types—clean, efficient, innovative, and progressive—and analyzes how SBSC mechanics adapt to each. It explores the five perspectives of SBSC (financial, customer, internal business processes, learning and growth, and the non-market perspective) and the types of indicators used in each, providing a foundational understanding of the framework used throughout the thesis. This chapter lays the theoretical groundwork for understanding the relationship between SBSC and company performance.

3. An Example of the Implementation of SBSC shown in Daimler's Annual- and Sustainability-Report: This chapter presents a case study of Daimler AG, analyzing how the company implemented and reported on its SBSC within its annual and sustainability reports. This provides a practical example to illustrate the theoretical framework discussed in the literature review, showing real-world application and challenges in implementing SBSC. It analyzes specific indicators used by Daimler to measure its progress on sustainability objectives, connecting these indicators with broader themes of corporate social responsibility and financial performance. The chapter serves as a bridge between the theoretical foundation and the empirical analysis that follows.

4. Methodology: This chapter details the research methodology employed in the study, outlining the research design, data collection methods, and statistical analysis techniques used to investigate the relationship between SBSC implementation and stock performance in the selected DAX 30 companies. The chapter clarifies the data sources used, the variables selected for analysis, and the rationale behind the chosen analytical approaches. The methodological transparency aims to enhance the reliability and validity of the research findings. This chapter is critical in allowing other researchers to assess the rigor and replicability of this study.

5. A Statistical Analysis to examine the link between the Implementation of SBSC and the Stock Performance in Study Case of DAX 30 Companies Performance: This chapter presents the results of the statistical analysis conducted to examine the relationship between the implementation of SBSC and the stock performance of DAX 30 companies. It includes detailed descriptions of the statistical models used, the results obtained, and interpretations of these findings. This chapter likely involves presenting tables and graphs summarizing descriptive statistics, regression analysis results, and other relevant data related to the research questions. This is the core of the empirical section, which tests the hypotheses set out earlier.

Schlüsselwörter (Keywords)

CSR, SBSC, Share Price, DAX 30, Sustainability, Balanced Scorecard, Stock Performance, Corporate Social Responsibility, Strategic Controlling, Sustainability Strategy, Financial Indicators, Non-Financial Indicators.

Frequently Asked Questions: Sustainability Balanced Scorecard (SBSC) and Stock Performance

What is the main focus of this master's thesis?

This master's thesis investigates the theoretical relationship between implementing a Sustainability Balanced Scorecard (SBSC) and the stock performance of DAX 30 companies between 2016 and 2018. It aims to understand how integrating sustainability into strategic management affects a company's market valuation.

What is a Sustainability Balanced Scorecard (SBSC)?

The SBSC is an extension of the traditional Balanced Scorecard (BSC) framework. It incorporates sustainability considerations into strategic management, integrating financial and non-financial indicators to assess performance across various perspectives (financial, customer, internal processes, learning & growth, and non-market/society & environment).

What are the key themes explored in this thesis?

Key themes include the relationship between SBSC implementation and stock performance; the application of SBSC across different sustainability strategy types (clean, efficient, innovative, and progressive); the roles of financial and non-financial indicators within SBSC; a comparative analysis of SBSC implementation across DAX 30 companies; and the contribution of SBSC to sustainable corporate value creation.

What is the structure of the thesis?

The thesis is structured into five chapters: 1. Introduction (background, research question, objectives, structure); 2. Literature Review (BSC, SBSC, strategy maps, sustainability strategy types, SBSC perspectives, indicators); 3. Case Study (Daimler's SBSC implementation); 4. Methodology (research design, data collection, statistical analysis); and 5. Statistical Analysis (results of the relationship between SBSC and stock performance of DAX 30 companies).

What methodology is used in this research?

The thesis employs a research design that includes a literature review, a case study of Daimler AG's SBSC implementation, and a statistical analysis to examine the relationship between SBSC implementation and stock performance of DAX 30 companies. The specific statistical models and data sources are detailed in Chapter 4.

What data is analyzed?

The empirical analysis focuses on data from DAX 30 companies from 2016 to 2018, examining the link between their SBSC implementation (as indicated by reported data) and their stock performance. The exact variables and data sources are specified in the methodology chapter.

What are the key findings (generally)?

The key findings, presented in Chapter 5, detail the statistical results of the analysis examining the relationship between SBSC implementation and stock performance. The chapter interprets these findings regarding the research questions and hypotheses presented in the introduction.

What are the key words associated with this research?

Key words include CSR, SBSC, Share Price, DAX 30, Sustainability, Balanced Scorecard, Stock Performance, Corporate Social Responsibility, Strategic Controlling, Sustainability Strategy, Financial Indicators, and Non-Financial Indicators.

What is the significance of the Daimler case study?

The Daimler case study (Chapter 3) provides a real-world example of SBSC implementation, illustrating the theoretical concepts discussed in the literature review and bridging the gap between theory and empirical analysis. It demonstrates how a company reports on its SBSC and connects sustainability initiatives to financial performance.