Relevance of the balanced scorecard model in Africa: Shareholder-centred or stakeholder-centred?

摘要

The balanced scorecard model that was invented by Kaplan and Norton (1992) in the USA was designed for Western countries that operate within a capitalistic system. The capitalist systems focus on maximisation of wealth for the financial capital providers, shareholders. Africa is different in that its socio-cultural framework is socialist, community-based and humanist in nature. Thus, the balanced scorecard model is not fully reconcilable with an African environment. This study aimed at establishing whether or not the balanced scorecard model is relevant to an organisation operating in Africa. The study results reveal that the African social-cultural framework is inclusive in that its corporate governance embraces all stakeholders unlike an exclusive western framework of corporate governance that focuses on shareholders only. The current conceptualisation of the Norton and Kaplan balanced scorecard model is not ideal for an organisation operating in an African environment. There is a need to redesign the current balanced scorecard model to reflect realities of the African socio-cultural framework.