Key Performance Indicators in the Context of Sustainable Business Development

Peter SEKÁČ

https://doi.org/10.53465/EDAMBA.2022.9788022550420.345-354

 

Abstract: KPI stands for key performance indicator. The name suggests, a corporate KPI is nothing more than an indicator that measures the performance of a particular business activity or area. There can be instantly find out from car's speedometer and other indicators on the dashboard. Well-chosen KPI combination will allow to run business effectively, not only provide information on how business is doing. but will be able to identify emerging issues in time, take corrective action and see at least a little bit into the future. With KPI, there can be tracked not only a company's financial results, but also performance in all other important areas, such as sales, marketing, manufacturing, customers, suppliers or employees. KPIs also differ depending on the different sectors and the nature of the activity (production / trade / services / logistics ...). Performance indicators can take various forms: absolute number (eg sales achieved in €), relative data (% sales growth), ratio (number of pieces produced per day), ranking or rating (customer satisfaction). From a global perspective, it is the goal of all initiatives addressing the issue sustainable development to correctly define the essence of sustainability, to formulate principles and measures to improve and maintain economic, social conditions from an environmental point of view, to set acceptable targets, to contribute with active interventions to fulfill them, but also to choose the right indicators, indices or other permanent measures sustainability

Keywords: KPI, sustainable development, goal

JEL classification: M12, M14, Q56

Fulltext: PDF

Online publication date: 3 March 2023

ISBN: 978-80-225-5042-0

Publisher: University of Economics in Bratislava

Pages: 345-354

 

To cite this proceedings paper (STN ISO 690 and 690-2):

SEKÁČ, P. 2023. Key performance indicators in the context of sustainable business development. In LÜLEYOVÁ, A. (ed.). EDAMBA 2022: Conference Proceedings. Bratislava: University of Economics in Bratislava, 2023. ISBN 978-80-225-5042-0, pp. 345-354. https://doi.org/10.53465/EDAMBA.2022.9788022550420.345-354