QuartaVista
QuartaVista (lat. “Four Views”) is an innovation project that is developing a new navigation system or instrument for companies by offering assistance in four dimensions for decisions and planning. The focus is on economic effects as well as ecological and social ones, as well as on the company knowledge base. To financial account balances, QuartaVista adds accounts for ecological, social, and knowledge dimensions. This gives an overall overview of possible effects and leads to sustainable business decisions.
Doing business sustainably as a success factor for the future
Climate change, pandemics, digitalization, Globalization, shifting values, as well as worldwide economic crises pose new challenges for businesses. This makes sustainable trading an increasing success- and competition factor and hence part of company strategy. Doing business as usual hides unforeseeable risks that can threaten a company’s existence.
Corporate governance can therefore no longer just be seen one-dimensionally as a financial matter. Other aspects such as ecological, knowledge, and social ones must also be considered.
But how can investments in these intangibles be evaluated and made transparent in the company balance sheet? QuartaVista concerns itself with this question.
QuartaVista is one of 17 projects that are promoted by the German Federal Ministry for Labor and Social Affairs (BMAS) and supported professionally by the Federal Institute for Occupational Safety and Health (BAuA) as part of the "New Quality of Work Initiative" (INQA) and the “Businesses and Administration Fit for the Future in the Digital Age" directive.
In the QuartaVista innovation project, the economic activity of a company is to be evaluated quantitatively for its effects on nature and society (for example, ecological footprint), as well as for its fitness for the future (for example, knowledge management). QuartaVista also researches how the three additional dimensions can be made comparable across companies and business areas. These results can make a substantial contribution to the way a company is run in future.
In the innovation spaces of four partners from the food sector, relevant information and measured values can be processed, and new procedures and ways of thinking can be tested and developed further for practical use. To do this, the project partners – based on their company goals – define key figures with which they want to check and verify sustainable business practices.
The KPIs are determined and visualized on a dashboard – ideally automatically, using their own software. This lets them be compared regularly with company goals and be evaluated.
When these goals are achieved, added value is posted. If a goal is missed, a provision must be made. The result of the simulated business activity is then a modified profit and loss statement and balance (see graphic) according to QuartaVista.
Balancing sustainable business
The starting point for the QuartaVista innovation project is this: Current business activity is controlled and taxed one-dimensionally, according to traditional rules, with regard to financial results. The classic company balance sheet does not include intangibles such as customer satisfaction, CO2 footprint (carbon footprint), and employee wellbeing.
However, companies also interact in other dimensions with their environment and society and can gain advantages and make profits in these fields.
QuartaVista is investigating how to make these extensions to the company balance sheet more transparent for the company itself, for customers, investors, and society, resulting in a new form of control, taxation, and support for companies, for example, with regard to the following
• How the company behaves socially
• The effects of company business on the environment
• How the company acquires and retains knowledge.
This would enable another view of profit and loss, and lead to an appreciation of sustainable company business. These three additional dimensions should be regarded as an integral element of the company balance sheet and corporate governance.