Balanced Scorecard. A framework for measuring both financial outcomes and non-financial drivers, including Learning and Growth, Business Process Excellence, and Relationships.

Brand equity. The intangible value associated with a particular brand identity.

Business case. A rationale for a business decision, based on analysis of costs, risks and benefits.

Champion. A person that actively endorses a proposed initiative and thus influences its adoption.

Corporate citizenship. Treatment of stakeholders in an ethical and socially responsible manner.

Corporate governance. The system by which business corporations are directed and controlled.

Corporate social responsibility (CSR). Commitment to uphold human rights, behave according to accepted ethical standards, and contribute to socio-economic development and quality of life.

Cost of ownership. The total cost incurred by a customer in acquiring, using, and disposing of a product.

Design for Environment (DfE). A systematic process for incorporating environmental life cycle awareness into the development of new products and processes. Design for EHS is a similar practice that includes health and safety.

Differentiation. A competitive business strategy that seeks to offer products with distinctive features in order to differentiate the brand from those of competitors.

Economic value added (EVA). A measure of a company's financial performance, calculated by deducting its opportunity cost of capital from its after-tax operating profit.

Eco-efficiency. A measure of the resource intensity of a company's operations, including the inputs of materials, natural resources, and energy required to produce and deliver a unit of output.

Energy intensity. A measure of environmental efficiency in production, calculated by dividing the net energy consumption by the quantity or monetary value of the output.

Environmental footprint. The total environmental burden associated with a business operation, including resource consumption, land use, waste and emissions, and ecological impacts.

Environmental health & safety (EHS). A professional discipline concerned with protecting the environment, human health, and safety through scientific, engineering, and management methods.

Extended producer responsibility. A doctrine that assigns responsibility to manufacturers for minimizing the adverse environmental impacts of their products during customer use and end-of-life disposition.

Global warming. Gradual increase in average temperatures at the earth's surface, attributed to increased atmospheric concentrations of carbon dioxide and other greenhouse gases (GHGs), also known as global warming gases (GWGs).

Green purchasing. A business practice whereby purchasing agents in business or government evaluate products and services based upon selected environmental performance attributes.

Human capital. The set of skills which employees acquire on the job, through training and experience, and which increase their value in the marketplace.

Intangible asset. A non-monetary asset or value driver, including people, ideas, networks, and processes, which is not traditionally accounted for on the balance sheet.

License to operate. The ability of a corporation or business to continue operations based on ongoing acceptance by external stakeholder groups.

Logistics. The business function that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information.

Management system. A management approach that enables an organization to identify, monitor and control its performance, including financial, environmental, or social aspects.

Material intensity. A measure of environmental efficiency in production, calculated by dividing the net material consumption by the quantity or monetary value of the output.

Non-governmental organization (NGO). A not-for-profit organization that is not associated with government, e.g., charitable foundations, advocacy groups.

Non-renewable resource. A natural resource that cannot be replaced within the same time scale that it is consumed for industrial purposes, e.g., fossil fuels.

Partnership. A tailored business relationship that yields a competitive advantage resulting in business performance greater than would be achieved by the firms working together routinely.

Product life cycle. (1) A series of stages in the physical life of a product, including resource extraction, procurement, transportation, manufacturing, product use, service, and end-of-life disposition or recovery. (2) A series of stages in the commercial life of a product, including concept development, design, introduction, growth, extension, phase-out, and discontinuance.

Product stewardship. Integration of EHS and sustainability considerations into the management of a product's life cycle, including relationships with customers and suppliers.

Product take-back. A program, either voluntary or mandatory, whereby manufacturers take responsibility for recovering and recycling obsolete products at the end of their useful lives.

Renewable resource. A natural resource that can be replaced within the same time scale that it is consumed for industrial purposes, e.g., lumber.

Return on investment (ROI). A measure of a corporation's profitability, equal to a fiscal year's income divided by common stock and preferred stock equity plus long-term debt.

Return on net assets (RONA). A measure of a corporation's profitability determined by dividing net income for the past year by total average assets minus total liabilities, i.e., net worth.

Risk management. The process of identifying and evaluating risks and selecting and managing techniques to adapt to risk exposures.

Risk. (1) The possibility of losing rather than gaining. (2) A measure of price fluctuation relative to the market. (3) The possibility of an adverse incident due to hazards or uncertainties.

Shareholder value. The value that a shareholder is able to obtain from his/her investment in a company, including capital gains, dividends, and proceeds from buyback programs.

Stakeholder. Any party that has an interest, financial or otherwise, in a firm - shareholders, creditors, employees, customers, suppliers, the community, interest groups, and the government.

Strategy. A set of goals and aspirations combined with an action plan for achieving those goals.

Supply chain. A network of suppliers and customers who add value in the form of materials, components, or services, ultimately resulting in a final product.

Supply chain management (SCM). The integration of key business processes from end user through original suppliers, which provides products, services, and information that add value for customers and other stakeholders.

Sustainability. Conditions or characteristics supportive of sustainable development, encompassing the environmental, social, and economic aspects of a corporation.

Sustainable development. Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Time to market. The time interval or cycle time between the launch of a new product development effort and the market introduction of the new product.

Transparency. Openness of a company or organization with regard to disclosing information about its policies, principles, and decision-making processes.

Triple bottom line. A framework for sustainable development that defines three fundamental aspects of corporate performance - economic, environmental, and social.

Upgradeable design. A design for a durable product that allows the product to be upgraded by the replacement of outdated components.

Value creation. Activities that generate shareholder value for a company, e.g., value-based management.

Value driver. A fundamental and persistent characteristic of a business enterprise that influences its market value positively.


Sources: New York Times Financial Glossary, Eco-Nomics LLC, The Global Supply Chain Forum, Council of Logistics Management, GEMI.