CHAPTER 5Performance measurement, evaluation, and reward systems

In developing strategic responses, it is important for senior executives to understand the causal relationships between sustainability performance, and financial performance, to understand the payoffs from social, environmental, and economic improvements, and to create a culture where employees understand and work toward corporate social, environmental, and economic goals. Corporate incentive and reward systems can be a critical tool to implement sustainability and align the interests of the corporation, senior managers, and all employees. These systems are usually a part of a broader set of systems to evaluate the performance of the organization, its various units, and individuals. ...

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