As environmental issues increasingly impact on the success of the oil industry, and on its enterprise value, the industry needs to establish the systematic environmental management strategy with the objective development of the performance evaluation method. But because most studies on the environmental performance were approached from the result, they were not connected to the process of the environmental performance or corporate performance.
The purpose of this study is to identify a new framework for the accumulation process of the environmental capability that can satisfy the enlarged stakeholders. For that purpose, this study proposes eco-efficiency concept for environmental strategy of the oil industry and then develop the environmental balanced scorecard (EBSC) to guide the process of the strategy implementation. This study also tries to analyze the cases of a foreign oil company and a domestic one using by the suggested EBSC framework.
The findings of this study are as follows:
First, eco-efficiency can be an alternative for the new environmental strategy that the corporate should pursue in the future. Second, in order to estimate the eco-efficiency internally, the cause and effect approach is suitable, and should include the qualitative estimation. Third, although the environmental management level of the domestic company is still behind the foreign one, there are no remarkable differences between the two companies. Forth, from the result of the case study, the classification of the index by short-term and long-term is desirable especially considering the characteristic of the oil industry. Finally, in order to achieve eco-efficiency, there must be not only the company's effort but also the support and collaboration by the government and customers.
