Balanced Scorecard and Ethical Issues - Assignment Example It has been observed that majority of the firms utilize BSC in order to evaluate the ‘balance’ existing between its compensation plan and the performance measures over a certain period of time which further assists the organization to design effective strategies (Ittner, Larcker, & Meyer, 1997). Performance measurement facilitates managers to evaluate the outcomes of the overall organization as well as employees’ operational activities. Performance measurement also depicts the effectiveness of resources and the possibilities through which the activities and the resources satisfy organizational missions and objectives in a rational manner. Recent researches have often regarded BSC as a management tool which can deliver successful and well-documented outcomes (US Department of Energy, 2013). However, when measuring the attributes considered in the BSC framework, various ethical issues can also be observed to disrupt its validity as well as the reliability of the overall evaluation process outcomes.
