Comprehensive Performance Appraisal Of Steel Enterprises In Low-carbon Economy Background

From the appearance of the concept of low-carbon economy in UK Energy White Paper:Our energy future-creating a low carbon economy in 2003, it has gained high attention from each government. Low-carbon economy is also coming into our life gradually and becomes the world's new economy model. As we all know, steel industry is a typical high-carbon industry, it, more than others, under the pressure to cut CO2 emissions. Using low-carbon economy theory to improve the steel enterprises'original methods of performance appraisal, and establish a new appraisal model under the background of low-carbon ecological economy plays an important role in enterprises' development. At one hand, it will help the enterprises to analyze their advantage and disadvantage, and make proper action plans or strategies, promote their sustained development. At the other hand, it provides the scientific information and tools for the government and stakeholder to assess and supervise the steel enterprises. Therefore, it has a very important theoretical value and generally realistic sense.This paper based on the background of low-carbon ecological economy, consulted the ecological, economical, social performance appraisal standard in nation and international, combined the current policy background and enterprise feature, and conducted many academic discussions and empirical researches. The main results are as follows:1. Analyzed the theoretical basis of performance appraisal of steel enterprises in low-carbon economy backgroundIn this paper, the character and core idea of low-carbon economy, enterprises'business values and stakeholders'benefits claim, and enterprises'opportunities and challenges under low-carbon economy background were analyzed. This result provides the theory basis for the building of index system and model of performance appraisal.2. Analyzed the research status of steel enterprises'performance appraisalThrough reviewing and summarizing domestic and international literature, we found that:1. there is still relatively few practical performance appraisal methods that based on low-carbon ecological economy background and can be measured quantitatively; 2. the existing performance appraisal methods are established by expert inquiry,expert survey, and analytic hierarchy process (AHP), and it has too much personal factor; 3.there is less research on steel enterprises'performance appraisal, the existing researches are focus on financial performance evaluation, or combine balance score card(BSC) to rebuild the evaluation system; 4. few research considered the dynamic balance and static balance, it affected the forecast and sustain function of performance appraisal.3. Established the performance appraisal index system of steel enterprises based on low-carbon ecological economy backgroundThe index selection and index system establishment were guided by low-carbon ecological economy ideal, characterized by low pollution, low emission, lower energy consumption. The ultimate goal is to maximize efficiency of resource use, environment protection and people's interests. Based on this, according to relevant accounting and environment management standards, related state policies, combined the features of steel enterprises under low-carbon ecological economy background, and established the comprehensive performance appraisal index system. It includes three first-class indexes of economic performance and environmental performance and social performance, twelve second-class indexes of profit ability, debt paying ability, operation ability, development Capability, resource consumption, environmental impact, environmental governance, environmental improvement, product responsibility, business ethics, labor employment and social impact, and forty three third-class indexes.4. Established a triple performance appraisal model of steel enterprises based on low-carbon ecological economy backgroundThe economic, environmental and social performance were combined by catastrophe progression method (CPM) to establish the triple performance appraisal model of steel enterprises based on low-carbon ecological economy background. In the establishment processes, we put more attention to improving the Scientificalness and sustainability of this model. There is no weight in CPM, the indexes are ranked by internal logical relationship and significant degree, avoided the impact of personal factors, and can make a scientific performance appraisal for the enterprises. The dynamic and static balance is the reflection of balance and orderly of triple performance appraisal and dynamic development process, and it is useful in avoiding enterprises'pursuit of immediate interests and short-term interest, and promotes the comprehensive, harmonious, sustainable development of enterprises.5. Empirical research of comprehensive performance appraisal of four steel enterprises was conductedThe economic, environmental, and social performance of Baosteel(Baoshan Iron and Steel Plant), Masteel (Manshan Iron), TISCO (Taiyuan Iron and Steel Co.) and Wisco(Wuhan Iron and Steel) were analyzed. The appraisal result indicates that Wisco's comprehensive performance is in the first-rate; TISCO and Baosteel take the second place, and Masteel is in the last place in 2008. The rank of economic performance is Wisco, TISCO, Masteel,Baosteel,the rank of environmental performance is Baosteel, TISCO, Wisco,Masteel,and the rank of social performance is Wisco,Baosteel,TISCO,Masteel. In 2009 Baosteel's comprehensive performance is in the first-rate; TISCO and Wisco take the second place, and Masteel is in the last place. The rank of economic performance is Baosteel, Wisco,TISCO,Masteel,the rank of environmental performance is Baosteel, TISCO, Wisco,Masteel,and the rank of social performance is Baosteel, Wisco, Masteel, TISCO.Based on this, balance rate of these four enterprises were analyzed. The appraisal rank of static balance is Baosteel, Wisco, TISCO, Masteel. And the appraisal rank of dynamic balance is Baosteel, Masteel, TISCO, Wisco. At last, on the basis of balance analysis, Baosteel's comprehensive performance is the best, and Wisco, Masteel, TISCO follows. Baosteel has the the most growth potential and sustainability.Overall,with good dynamic and static balance Baosteel's comprehensive performance is the best,which indicates its better growth potential and stronger sustainability.Masteel's comprehensive performance is the last,the main reason is its big difference among other enterprises in environmental and social performance. In the mean time of seeking economical efficiency, enterprise should bear social and environmental protection responsibility.In order to avoid neglecting some aspects,TISCO and Wisco should make steady progress in business development.6. Put forward the improvement strategies of comprehensive performance of steel enterprisesBased on the comprehensive performance appraisal result, steel enterprises' development environment and steel industry development tendency, the improvement strategies were put forward:steel enterprises should strengthen economy and intensive use of resources; conduct the work of energy-saving emission reduction; apply the theory of low-carbon ecological economy and recycle economy to steel enterprises'technical transformation, and build low resources consumption, high additional value, environment-friendly green steel enterprises, and, as a result, improve their comprehensive performance.Finally, in the last chapter, based on the summary, the main achievements as well as limitation and further research are put forward.