Journal of Chemical and Pharmaceutical Research, 2015, 7(3): Research Article

Transcription

1 Avalable onlne Journal of Chemcal and Pharmaceutcal Research, 2015, 7(): Research Artcle ISSN : CODEN(USA) : JCPRC5 Trple-bottom-lne performance evaluaton on Chna's ron and steel enterprses under the background of low carbon economy Dajun Ye Department of Cvl Engneerng, Schuan College of Archtectural Technology, No.4, West Jalngjang Road, Deyang, Chna ABSTRACT On the bass of trple-bottom-lne performance evaluaton, the system of ndcator and the model of evaluatng are establshed n ths paper on the performance of Iron and Steel Enterprses. Wth the sample of 10 lsted data between 2009 and 2011 of Chna's Iron and Steel Enterprses, ths paper also conducts an emprcal study on trpe performance evaluaton and sets out each one's overall performance to carry out a synthetc evaluaton on Chna s Iron and Steel Enterprses under low carbon economy. Key words: Low Carbon; Iron and Steel Enterprses of Chna; Trple-Bottom-Lne Performance; Emprcal Research INTRODUCTION Performance evaluaton of an enterprse remans a complex system whch conducts comprehensve evaluaton of enterprse's overall busness and operatonal effcency. It concerns not only an enterprse's current stuaton but also future development, whch means that scentfc evaluaton s of great sgnfcance for enterprses' survval and development. Ed Freeman et al.(1984) proposed stakeholder theory, whose core dea s that an enterprse s a combnaton of mutual contact wth stakeholders (ncludng shareholders, employees, customers, supplers, credtors, governments and communtes) accordngly the enterprse performance evaluaton should analyze the nterest satsfacton between all stakeholders; "trple bottom lne" (TBL) theory that ndcates companes n pursut of ther own development process, should acheve economc, socal and envronmental " trple bottom lne " basc requrements[1]; " trple-bottom-lne performance " theory that the enterprse performance s dvded nto economc, envronmental and socal performance, and the evaluaton s based on the former responsbltes, coverng all aspects of the enterprse operatng, s a comprehensve enterprse performance evaluaton of scentfc method[2].trple-bottom-lne performance accountng provdes the frameworkand tool for consderng economc, envronmental,and socal mplcatons of decsons,products,operatons, or future plans and s thereforehelpful n mprovng the fundamental functonsof organzatons and lastng st []. The trplebottomlne concept suggeststhatfrmsnotonlyneedto engage n socally and envronmentally responsble behavor,butalso, that postve fnancal gans can be made n the process[4]. Iron and Steel Enterprses are not only a bg unt of GDP, but also a major pollutant emsson. In the context of the development of low carbon economy, those enterprses must acheve the goals of economc development, ecologcal survval, and socal welfare [5]. As a result, the evaluaton on performance of the enterprses cannot smply consder economc factors, but on bass of ecologcal, economc, socal, trple-bottom-lne performance. The advantages of trple-bottom-lne performance evaluaton method for Iron and Steel Enterprses are: (1) avorable for makng the real evaluaton on the enterprse operaton to dentfy problems. (2) Favorable for renforcng Ecologcal awareness n the enterprse and ther employees to acheve green GDP growth. () Favorable for conscously practcng economc, socal and envronmental responsbltes, and enhancng marketng compettveness and socal nfluence of Iron and Steel Enterprses.Meanwhle because of large number of selected 410

2 factors and of hard-determned ndcators quantfcaton, the trple-bottom-lne performance evaluaton can only be used for large mature enterprses. INDICATION SYSTEM OF TRIPLE-BOTTOM-LINE PERFORMANCE EVALUATION ON IRON AND STEEL ENTERPRISES In order to comprehensvely, objectvely and mpartally evaluate the performance of Iron and Steel Enterprses, based on the prncples of scentfc, practcal and comparable, ths artcle separately construct ndcators of economc performance, ecologcal performance and socal performance consderng reports on fnance, socal responsblty, sustanable development and other content of Iron and Steel Enterprses[6][7], and the selected ndcators are quanttatve. 1. Indcator system of economc performance Table.1Indcators of economc performance evaluaton Level 1 Level 2 Level Equaton or descrpton Proft B1 Rate of sales proft C1 The weghted average return on net assets C2 Return on assets C Basc earnngs per share C4 Total proft/ Revenue*100% Net proft attrbutable to ordnary shares/average balance of net assets*100% (Total profts+interest expense)/average total assets*100% (After tax profts-preferred stock dvdend)/the average share of the outstandng stock*100% Economc performance A1 Solvency B2 Debt to total assets rato C5 Multples of nterest earned C6 The quck rato C7 Total labltes/total assets*100% (Net proft+interestexpenses+income Tax Expense)/Interest expenses*100% Quck assets/current labltes*100% Development B Operatng B4 Cash flow and debt rato C8 The growth rate of sales revenue C9 The ncreasng rate of assets C10 Technology nvestment rato C11 Captal ncrement rate C12 Assets turnover rato C1 Current assets turnover rato C14 Recevables turnover rato C15 Cash recovery of assets C16 Year of net operatng cash flow/current labltes at the end of the year*100% (The annual revenue-the prevous year revenue)/the prevous year revenue*100% (Total assets at the end of the year-total assets at the begnnng of the year)/total assets at the begnnng of the year *100% Total spendng on technology ths year/the annual revenue*100% The owner's equty at the end of the year/the owner's equty at the begnnng of ths year*100% Revenue /Average total assets*100% Revenue /The average total current assets*100% Revenue /Average total recevables*100% Net operatng cash flow/the average total current assets*100% 2. Indcator system of ecologcal performance Table.2 Indcators of ecologcal performance evaluaton Level 1 Level 2 Level Equaton or descrpton Ecologcal performance A2 Envronmental mpactand control B5 C0 2 emssons of steel, per ton C17 C0 2 emssons /Crude steel output SO2 emssons of steel, per ton C18 SO 2 emssons /Crude steel output Envronmental protecton nvestment rato C19 Envronmental protecton nvestment / Total value of output Resource consumpton B6 Fresh water consumpton of steel, per tonc20 Comprehensve energy consumpton of steel, per ton C21 Fresh water consumpton / crude steel output Energy consumpton / Crude steel output 411

3 . Indcator system of socal performance Table. Indcators of socal performance evaluaton Level 1 Level 2 Level Equaton or descrpton Socal performance A Labor employment B7 Annual growth rate of employees C22 Growth rate of wages and benefts C2 (Total employees ths year -Employees the prevous year)/employees the prevous year*100% (Average wages and benefts ths year -Average wages and benefts the prevous year)/average wages and benefts the prevous year*100% Socal contrbuton B8 Actual payment rate of tax C24 Rate of socal donaton to revenue C25 Tax payment ths year /The annual revenue*100% Donaton /Revenue *100% EVALUATION MODEL ON IRON AND STEEL ENTERPRISE TRIPLE-BOTTOM-LINE PERFORMANCE 1. Statc comprehensve Evaluaton on Iron and Steel Enterprses trple-bottom-lne performance Trple-bottom-lne performance s defned as S, and Economc performance,ecologcal performance,socal performance, as A1, A2, and A. Respectvely, that s, SA1+A2+A, whose statc comprehensve evaluaton model[8][9]s: Frstly, to defne the orgnal value of each ndcator, as consderng quantfcaton n ndcator selectng, the value of selected ones can be computed. Secondly, the non-dmenson of ndcator s orgnal value. The method chosen ntegrates both advantages of lnear non-dmenson treatment method and "solutons non-dmenson treatment evaluaton of nonlnear"[10], whose raw data controllng the varable s lmted n [0, 1], and the non-dmenson relatonshps: Forward ndcator uj umn. j Vj umax. j umn. j (1) Reverse ndcator V j u u max. j max. j u u j mn. j (2) Theren, 1,2,n(, subsystems; n, the number of ndcators);jl,2,n(j, hypo-subsystems;n, the number of U max.j Umn.j ndcators). s the ndustry's maxmum values of the ndcator;, the mnmum. Thrdly, calculaton of statc comprehensve performance values n each subsystem or mnor ones. The values are calculated and determned by the catastrophe progresson method on each of the subsystems non-dmenson ndcator: subsystems sequence and ts ncluson relatons are determned accordng to ther herarchcal structure, wthn whch f an ndcator s only decomposed nto 2 sub ndcators, the system can be regarded as the cusp catastrophe one, such as ndcator A2, A, B6, B7, and B8. The model of these ndcators s 4 2 f ( x) x + ax + bx,andthe normalzed one could be expressed as: xa a ', xb b ' () In the case of an ndcator decomposed nto sub ndcators, the system s regarded as the dovetal catastrophe, lke 5 2 ndcator B5, whose model s f ( x) x + ax + bx + cx, and the normalzed one: 4 xa a', xb b', xc c' (4) In the case of 4 sub-ndcators, the system s regarded as the butterfly catastrophe, such as A1, B1, B2, B, and B4, whose models f ( x) x + ax + bx + cx + dx, and the normalzed one: 412

4 4 5 xa a ', xb b', xc c ', xd d ' (5) Fourthly, calculaton of the statc comprehensve trple-bottom-lne performance value X n Iron and Steel Enterprses. The value s obtaned by the number of subsystems decomposed trple-bottom-lne performance S accordng to the catastrophe progresson method. 2. Statc coordnaton of trple-bottom-lne performance of Iron and Steel Enterprses Statc coordnaton means equponderant state of trple-bottom-lne performance at a specfc pont or n a perod of tme. Accordng to three-dmensonal vectors analyss, statc coordnatve degree can be anglczed on the bass of the angle and orentaton between vector of overall performance and the one of trple-bottom-lne performance. Angle shows the magntude of the enterprse busness s the actual effect of strateges n the economc, envronmental and socal, as well as of the overall performance, and ndcates the matchng relatonshp between them. The relatonshp between enterprse s overall trple-bottom-lne performance and ts vector value P s avalable by the followng functonal expresson: P( t) A ( t) + A ( t) + A ( t) (6) Computatonal equaton on statc coordnaton degree: H cosθ A A A P ( t) /2 2 /2 (7). Dynamc coordnaton of trple-bottom-lne performance of Iron and Steel Enterprses Dynamc coordnaton means the development of orderly orented trple-bottom-lne performance, ncludng the level of performance development and the one of statc coordnaton mprovement. Therefore, the varaton of overall performance and statc coordnaton can comprehensvely reflect dynamc coordnaton. Its equaton s: D [ P( t) P( t t) + 1] [ H ( t) H ( t t) + 1] (8) In equaton (8), D represents dynamc coordnaton. If D > 1, t explans that the performance level and the statc coordnaton tend to be mproved n general; If D 1, generally stable; If D < 1, regress on the whole. d. Comprehensve evaluaton model of performance of Iron and Steel Enterprses Based on the statc performance comprehensve evaluaton, the ntegrated model forms by adjustment usng the statc coordnaton and dynamc coordnaton: F X A H D (9) The F s the comprehensve performance of the -th enterprse, whose magntude determnes ts sortng poston. THE EMPIRICAL APPLICATION ON TRIPLE-BOTTOM-LINE PERFORMANCE EVALUATION OF IRON AND STEEL ENTERPRISES 1. Samples and data resource The data selected n ths paper s released from reports of 10 lsted companes durng on annual fnance, socal responsblty, and sustanable development. In order to ensure the representatveness and scentfcness of samples, the 10 Iron and Steel Enterprses are dstrbuted n north Chna (Shougang Group), east (Baosteel Co.,Ltd., Masteel Group), northeast (Angang steel Corp.), south(sgis Songshan Co.,Ltd.), northwest(xnng specal steel Co., Ltd., Baotou steel Group), central(wuhan ron and steel Corp.), southwest(chongqng ron and steel Co., Ltd., Luzhou ron and steel company,ltd.), amongst are 4 mega enterprses(baosteel, Shougang, Wuhan ron and steel, Angang),4 large enterprses(masteel, Luzhou ron and steel, Chongqng ron and steel, Baotou steel), and 2 average scale enterprses(sgis, Xnng specal steel). 2. Data pre-processng Accordng to the equaton(1)and(2), a total of 66 samples, the parameter values of specfc correspondng ndcators of the 10 lsted companes between 2009 and 2011, namely 66 x 10 data are processed n non-dmenson. Due to the 41

5 fnte space, the non-dmenson values ofbaosteel n 2009 are the only ones lsted.( the followng calculaton s based on the example of Baosteel s data n 2009) Table.4Data on non-dmenson processed enterprse performance evaluaton ndcators of Baosteel n 2009 Indcators of level C Processed data Indcators of level C Processed data C1 Rate of sales proft C14 Current assets turnover rato C2 The weghted average return on net assets C15 Recevables turnover rato C Return on assets C16 Cash recovery of assets C4 Basc earnngs per share C17 CO2emssons of steel, per ton C5 Debt to total assets rato C18 SO2 emssons of steel, per ton C6 Multples of nterest earned C19 Envronmental protecton nvestment rato C7 The quck rato C20 Fresh water consumpton of steel, per ton C8 Cash flow and debt rato C21 Comprehensve energy consumpton of steel, per ton C9 The growth rate of sales revenue C22 Annual growth rate of employees C10 The ncreasng rate of assets C2 Growth rate of wages and benefts C11 Technology nvestment rato C24 Actual payment rate of tax 0.56 C12 Captal ncrement rate 0.49 C25 Rate of socal donaton to revenue C1 Assets turnover rato The computatonal process of trple-bottom-lne performance of Iron and Steel Enterprses Frstly, accordng to the equaton (4), (5), (6), and values of Level 2 ndcators(b1, B2, B, B4, B5, B6, B7,and B8) are calculated separately, such as the calculaton model of B2. Because of B2 s 4 subordnate ndcators(c5, C6, C7andC8), as stated prevously, the butterfly catastrophe, the ndcator of solvency of Baosteel n 2009 s: X B 2 X + X + X + X 4 1/2 1/ 1/4 1/5 C 5 C 6 C 7 C Secondly, contnuously accordng to the equatons (4), (5), and (6), values of the level, ndcators, namely the economc performance A1, ecologcal performancea2, socal performance A,are calculated out based on the Level 2 ndcators, and accordng whch the value of comprehensve performance evaluaton X s worked out. The same can be appled for other enterprses, n other years. (Shown n table 5) Table.5 Values of the 10 enterprses trple-bottom-lne performance between 2009 and 2011 Year Evaluatonvalue A1 A2 A X A1 A2 A X A1 A2 A X Baosteel Shougang Angang Wuhan ron and steel Chongqng ron and steel Baotou steel Masteel Luzhou ron and steel SGIS Xnng specal steel The evaluatng process of statc coordnaton of trple-bottom-lne performance of Iron and Steel Enterprses Takng the data of Baosteel, annual 2010, as example, the trple-bottom-lne performance vector value P s based on formula (6) and data n table 5: P( t) a A ( t) + A ( t) + A ( t) Accordng to equaton (7), statc coordnaton s: 414

6 cosθ H 1 /2 2 /2 The same can be appled for other enterprses, n other years. (Shown n table 6) Table.6 Values of the 10 enterprses statc coordnaton between 2009 and 2011 Year Evaluaton value P(t) H P(t) H P(t) H Baosteel Shougang Angang Wuhan ron and steel Chongqng ron and steel Baotou steel Masteel Luzhou ron and steel SGIS Xnng specal steel The evaluatng process of dynamc coordnaton of trple-bottom-lne performance of Iron and Steel Enterprses Dynamc coordnaton s based on example of Baosteel and data n chart 6. Substtuted nto equaton (8): D [ P( t) P( t t) + 1] [ H( t) H( t t) + 1] [ P(2010) P(2009) + 1] [ H(2010) H(2009) + 1] [ ] [ ] The same can be appled for other enterprses, n other years. (Shown n table 7) Table.7 Values of the 10 enterprses dynamc coordnaton between 2009 and 2011 D Value Year Baosteel Baotou steel Shougang Masteel Angang Luzhou ron and steel Wuhan ron and steel SGIS Chongqng ron and steel Xnng specal steel The evaluatng of comprehensve performance of Iron and Steel Enterprses Accordng to equaton (9)and data above, the value of comprehensve performance of Baosteel n 2010 s: F X H D A The same can be appled for other enterprses, n other years. (Shown n table 8) Table.8 Values of the 10 enterprses comprehensve performance evaluaton between 2009 and 2011 F Value Average value Year Average value Baosteel Baotou steel Shougang Masteel Angang Luzhou ron and steel Wuhan ron and steel SGIS Chongqng ron and steel Xnng specal steel CONCLUSION (1)The trple-bottom-lne performance statc comprehensve evaluaton shows, that n addton to Baosteel s ecologcal of the 2010 annual s greater than the economc and socal performance, ts data n 2009 and 2011, and 415

7 other enterprses n the three year ndcates a contrary result, whch s that the economc s greater than the other two, for ths reason t s unscentfc, prone to draw one-sded concluson to evaluate performance only on the economc n ron and steel enterprse s; and that besdes Wuhan s economc performance more than Baosteel s n 2010, the rest of the data are dsplayed Baosteel rankng frst, whch we can see Baosteel s nductalleadng status n Chna. (2)On the statc coordnaton of trple-bottom-lne performance, data of the 10 enterprses n each annual generally are between 0.97 to 0.099, whch shows a fne statc coordnaton. And that n 2009 annual Masteel ranked the frst, so dd Baotou steel n 2010 and 2011, shows that large enterprses statc coordnaton s not necessarly good. ()On the dynamc coordnaton of trple-bottom-lne performance, values of Baosteel, An gang, Wuhan ron and steel and Baotou steel n 2010 and 2011 annual are larger than 1, ndcatng that the four enterprse s dynamc coordnaton s good, and performance level and the statc coordnaton tend to mprove; And n 2010 values of Chongqng ron and steel, Masteel, Luzhou ron and steel s less than 1 whle greater than 1 n 2011, t presents that the statc coordnaton of the three companes tend from the regressng state of 2010 to the mprovng one of 2011 through adjustments, especally Luzhou ron and steel; On the contrary, the shft s worth thnkng for Shougang, SGIS and Xnng specal steel n 2012, as n 2010 ther dynamc coordnaton values s more than 1 but less than 1 n (4)On the data of comprehensve evaluaton, the average value of the 10 enterprses both n 2010 and 2011 s between 0.9 and 1, wth rankng of Baosteel, Baotou steel, Angang, Wuhan ron and steel, Luzhou ron and steel, Chongqng ron and steel, Masteel, Xnng Specal steel, Shougang, and SGIS. To a certan extent, ths reflects development level of Chna s Iron and Steel Enterprses n the background of low carbon economy. As for Shruggng s low rankng, adjust mental phase of ts post-relocaton has much to do. REFERENCES [1] John Elkngton J., Envronmental Qualty Management, vol. 8(1), pp. 7-51, [2] Wen, S.B., Accountng Research, no. 12, pp , [] Mtchell, M., A. Curts, and P. Davdson., Local Envronment, vol. 1(2), pp , [4] Gmenez,C., Serra,V., Rodon,J., Internatonal Journal of Producton Economcs, vol. 140(1), pp , [5] Dong,X.D., IEEE, vol. 28(5), pp. 5 14, [6] Fauz, H., Svensson, G., Rahman, A. A., Sustan, vol. 2(5), pp , [7] Hu, A. H.,Chen, L. T., Hsu, C. W., Ao, J. G., Envronmental Engneerng Scence, vol. 28(12), pp , [8] Marksberry, P. W., Jawahr, I. S., Internatonal Journal of Machne Tools & Manufacture, vol. 48(8), pp ,2008. [9] Zhao,R.F., Yang L.F., Guangdong Agrcultural Scences, no. 4, pp , [10] Zhu, K.L., Cao,Y.Y., Journal of Xhua Unversty (Phlosophy & Socal Scences), no., pp. -5, [11] Skoulouds,Antons, Evangelnos, Envronmental Management, vol. 44(2), pp ,2009. [12] Tang X. The Vew of Recyclng Economy, no. 6, pp. 8-41, [1] Venkatraman,S., Nayak, R., Internatonal Journal of Busness Innovaton and Research, vol. 4(5), pp , [14] Vtezcacute, N., Internatonal Journal of Trade and Global Markets, vol. (1), pp , [15] Wedmann, Thomas O., Lenzen, Manfred, Barrett, John R., Journal of Industral Ecology, vol. 1(), pp. 61-8,