How to Measure Performance in a Purposeful Company? Analysing the Status Quo

British Academy, Future of the Corporation Working Paper Series, 2019

62 Pages Posted: 7 Jan 2020

See all articles by Judith C. Stroehle

Judith C. Stroehle

University of Oxford - Said Business School

Kazbi Soonawalla

University of Oxford - Said Business School

Marcel Metzner

University of Oxford - Smith School of Enterprise and the Environment

Date Written: December 16, 2019

Abstract

This paper examines the relevance of the British Academy Principles for Purposeful Business in the area of corporate measurement and performance. Because measurement and performance are critical for effective and sustainable management, the success of putting purpose into practice hinges on the ability to create metrics beyond solely financial standards and benchmarks. Drawing on expert interviews, case studies and document analysis, this paper analyses the current ecosystem of “non-financial” measures, discussing which frameworks and methodologies organisations can choose from and how these may differ in utility. It further explores whether and how metrics can be practically integrated with the traditional financial performance measurement, such as profits and capital investments. This inquiry provides an analysis of the remaining gap between existing non-financial measurement and accounting efforts and their full integration into organizations. The paper concludes with a discussion of three areas in which non-financial measurement is believed to be most impactful: investment practice, management decision making & incentivization, and corporate governance.

Keywords: non-financial measurement and performance, corporate purpose, sustainable investing, full-cost accounting, sustainability

Suggested Citation

Stroehle, Judith and Soonawalla, Kazbi and Metzner, Marcel, How to Measure Performance in a Purposeful Company? Analysing the Status Quo (December 16, 2019). British Academy, Future of the Corporation Working Paper Series, 2019, Available at SSRN: https://ssrn.com/abstract=3504530 or http://dx.doi.org/10.2139/ssrn.3504530

Judith Stroehle (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Kazbi Soonawalla

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Marcel Metzner

University of Oxford - Smith School of Enterprise and the Environment ( email )

United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
94
Abstract Views
450
rank
300,636
PlumX Metrics