How can stakeholder demands be integrated into core management systems of companies and managed in an effective and efficient

way? How can be ensured that, coming from the paradigm of economic, ethics, legal, environmental and social matters are implemented and managed by companies in an equal ways? The instrument of the BSC is being discussed as a possible appropriate conceptual framework for CSR. Recent researches at the Institute for Economy and the Environment at the University of St.Gallen have shown that the BSC is suitable to integrate qualitative, for example environmental and social, aspects into the core management system of the companies. Companies can use the combination of the BSC and CSR to help create a competitive advantage by letting decision makers know if they are truly entering into CSR virtuous cycle which is combines to improve organizational performance exponentially. A company could begin to compete on cost leadership as a result of improved technology and effective and efficient processes, which leads to improved ecological protection, which results in better risk management and a lower cost of cap ital. Alternatively a company could differentiate itself from its competitors' values and performance as a result of its community building activities, which can improve corporate reputation, result in improved brand equity, creating customers satisfaction, which increases sales. Since the 1990s, the Balanced Scorecard System has provided a rigorous way to measure performance by quantifying so-called intangible assets. The Balanced Scorecard draws its strengths from four perspectives: 1) financial measures; 2) customers; 3) internal processes; and 4) learning and growth. Kaplan and Norton used this four perspective model and link it with the time-based dynamics of strategy to create strategy maps. A strategy map provides a visual representation of the organizations strategy. A strategy map creates a powerful communication tool that enables employees to understand a strategy and translate it into actions to allow the organization to succeed. The key benefit of a strategy, as articulated by Michael Porter, is when the integrated and aligned activities enable the company to offer a value proposition better than competitors. While Porters work helps managers formulate strategy, the Balanced Scorecard provides the discipline to ensure that the formulated strategy has specific objectives for shareholders and customers, an explicit value proposition and organizational culture. Porter argues that strategy is determined by a unique combination of activities that deliver a different value proposition than competitors or the same value proposition better. The strategy map framework allows companies to identify and link together the critical internal processes and human, information and organizational capital that deliver the value proposition differently or better. The process of creating a strategy map and Balanced Scorecard translates the formulated strategy into specific objectives, measures and targets and initiatives in the four inter-related perspectives. The strategy map helps organizations translate, communicate, implement and review the strategy they have formulated following Porters principles.

The methodology is general as whichever strategic framework the organization is using still needs to translate and communicate across all business units and to all employees if the strategy is to be implemented effectively. Choosing the CSR indicators that correctly match a corporations strategy is both art and science, as much of strategic planning. The four perspectives can be easily adapted to CSR opportunities and challenges CSR is a non-financial driver that needs to be quantified. Companies need to realize that non-financial measures impact profitability. The importance of CSR is increasing. The upcoming generation of employees has much greater expectations as to the actions of companies, and it impacts where they decide to work. Potential employees will research the social actions of companies before determining where to work