Autori: Armenia S, Barile S, Iandolo F
Editore: Gandolfo Dominici
Tipologia Prodotto: Contributo in volume
Collana: International Symposium “Advances in Business Management. Towards Systemic Approach”.
Numero prima e ultima pagina: 50 – 52
Codice ISBN: 9788890824227
Anno di Pubblicazione: 2015
Abstract:
Aim of this paper is to propose the design and development of an Interactive Environment through a system dynamics model that, based on the conceptualizations of vSa, makes it possible to simulate the behavior of business organizations interested in measuring, and eventually increasing, their sustainable value. According to the above-mentioned theoretical framework, value, which has traditionally been considered as something objective and defined a priori, is characterized by a multiple nature and by strongly subjective contents. This last concept means that the definition of value passes through the perspective of the subjects towards whom it is created (i.e. Recipient), in relation to the perspective of the entity who is interested in its creation and measurement (i.e. the governing body of the organizations). This conceptualization, based on vSa assumes even greater significance when we refer to sustainable value, which is the result of the concurrent consideration of three dimensions: economic, social and environmental. In fact, given the priority of the economic dimension-as we refer to business organizations- sustainable value creation will only be achieved if companies will be able to concurrently include in their assessments also social and environmental elements. The model proposed herein, while considering value as a “vector” quantity (i.e. with a direction and a verse of its own), will enrich the traditional perspectives and tools for performance measurement with new elements that introduce a subjective weighting of the different stakeholders that may change according to the considered organization (e.g. subject A can be more interested than subject B in creating value towards environment and less towards society). Essentially, this means that sustainability can be defined as the result of the sum of several values that, in turn, are the result of the sum of different “subjectivities”. The reasons that have inspired this work derive from the consideration that, currently, there isn’t a theoretical/practical approach to sustainable value measurement for business organizations thatconsiders, at the same time, the dimensions of the triple bottom line together with the subjective perspective of decision makers. From these considerations, derives the idea to integrate vSa andSystem Dynamics in analyzing the issue of sustainable value, whose triple dimension is usually (erroneously) seen in an optic that does not consider the interactions among those three dimensions.
In fact, some of the most commonly used tools are the following.
- The standards of accountability: by targeting business decision makers in the definition andformalization of the actions of government, concern the certification of ethical conduct by business organizations and relate, primarily, to the social dimension.
- The Global Compact: sets out ten principles in four main areas, which are human rights, labour, environment and anti-corruption measures that should be considered in the decisionmaking processes.
- The Social Report is the certification of an ethical point of view that legitimizes the role of an organization as an economic entity that, in pursuing its own interests, should contribute to improving the quality of life of the members of the society in which it isinserted.
- The Environmental Report contains different types of indicators for what concernsenvironmental management; environment in general; environmental performance; potential impact; environmental effect.
- The Sustainability Report is drawn up according to the guidelines identified by the Global Reporting Initiative (GRI), consists of a set of indicators individually set for each dimensionand in a set of guidelines for the reporting and compilation of financial sustainability. It is, so far, the only document that provides a reporting system that meets the triple bottom line.
- Sustainability Balanced Scorecard (Figge & al: 2002): identifies the environmental andsocial issues that are strategically important for the business organization’s business units of reference.
- Sustainable value model (Figge & Hahn: 2004, 2005, 2006): based on the concept of negative externalities, provides a measure of sustainable value calculated according to theenvironmental cost of the emissions of considered business organizations.
However, these approaches have as their main limitations the fact that they calculate sustainable value in an exclusive efficiency optic, ignoring the dimension of effectiveness, which, by definition, includes a wider (in number and nature) variety of subjects to be considered. These tools, in fact, do not consider the need of business organizations to move to more enriched formulations for the calculation and communication of their processes of sustainable value creation, nor do they take into account the call for the consideration of the subjective perspective that comes from both academic and professional world. This integration of the subjective perspective within a model for calculating sustainable value will consider vSa as the theoretical framework of reference and System Dynamics as the methodology that allows translating such approach into a simulation model.
Keywords: Sustainability, Viable Systems Approach, System Dynamics, sustainable value