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The Construction and Application of the Evaluation Index System of
The Construction and Application of the Evaluation Index System of
Performance for Coal Enterprises Based on Low-Carbon Circular
Economy1
XIE Maohua, HU Weijuan
School of Economics and Management, Inner Mongolia University, Hohhot, China, 010021
[email protected]
Abstract: The concept of low-carbon and circular economy should be implanted into the evaluation
index system of performance for coal enterprises in the low-carbon economy. It could guide the
enterprises in acting in a sustainable development pattern in the virtuous cycle system. The managerial
objectives of coal enterprises should be represented from four aspects: economy efficiency, energy
consumption, social responsibility and environmental liability .Only is the coal mining progressing in a
circular economic pattern and attaching importance to safety production and people-oriented social
responsibilities, coal enterprises find their way to achieve goals. Therefore, the evaluation system of
performance should be based on the idea of low-carbon circular economy and use the circular economy
model "3R" as the axis. Borrowing method from Pareto principle and AHP to assign weight to indexes,
we put the four aspects of managerial objective into the evaluation system of performance to promote
sustainable development for coal enterprises.
Keywords: Sustainable Development, Managerial Objectives, AHP, Weight
1.
Introduction
After R • Brown (1999) raised revolution of energy economy, the concept of “low-carbon” was put
forward in UK’s White paper of the sources of energy (2003)2. This was the first time that low-carbon
concept appeared in a government document. After that, several studies have progressed in this area.
More recently, Hu (2008), Zou 2009 , Niu (2009), Wu 2008 and Li(2008) elaborated the significance
of national strategy of low-carbon that the low-carbon strategy would be the new rule in governing the
world development, and implied a link between low-carbon and the Chinese status in world economy
situation. As a result, we shall promote low-carbon and circular economy and fight for more
opportunities for development. Zhuang (2009), Pan (2009), Wu(2009), Zhou (2009), Ren (2009) and Fu
(2009) emphasized that research for expansion path for a low-carbon city is about low-carbon, structure
low-carbon, manner low-carbon, sustain low-carbon. Jin (2009), He(2009) and Hong (2009) argued the
technology approaches to low-carbon. Low-carbon concept should be in company with the support of
human race. Zhang (2009) and Wu (2008) provided evidence of relation between low-carbon and
pattern of consumption. Developing countries would prepare for transfer to low-carbon in development
strategy, policy, technological innovation and so on (Jin, 2009). Wang (2009) appealed that low-carbon
economy should be based on a perfect legal system.
While prior literature largely focused on meaning of development of low-carbon economy or how to
complete legal system to achieve low-carbon objectives, this paper attempts to provide guidance for
typical enterprises with highly-polluting productions and carbon-intensive factories in effective
management. Moreover, putting in the concept of low-carbon and adding indexes which measure carbon
emission contributes to an enterprise’s sustainable development in positive circle.
Our government appealed that China would endeavor to cut carbon emissions per unit of gross domestic
( )
( )
1
This paper is part of the project, supported by Humanities and Social Science Foundation from Ministry of
Education of China (Grant No. 08JA790061).
2
UK Energy White Paper :Our energy future - creating a low carbon economy ,2003
245
product by approximately 40%-45% by 2020 from the 2005 level on Nov.26th, 2009. And our
government set about enacting and improving the domestic statistical, monitoring and checking methods,
which can incorporate the emission objective in the long-term planning as an obligatory target. That
means our country will proceed to a decade which is marked with low-carbon and emission enforcement.
Rather than not to use coal and oil at all, developing low-carbon economy encourages us to make full
use of new energy resources to keep the earth clean and explored. Moving to a low carbon development
model requires coal enterprises to renew their financial strategic goals, and then to reset their evaluation
index system of performance. In consequence of shifting to low-carbon economy, it’s indispensable for
coal enterprises to reset the indexes in the evaluation system of performance.
Based on analysis about the prior literature, we make the following contribution to the existing literature:
that, how to reset coal enterprises’ objectives of the evaluation system of performance in a new
low-carbon and circular economy. Furthermore, we extend the literature in the spirit of Scientific
Outlook on Development. The remainder of this paper proceeds as follows. In Section 2, we outline the
reset of coal enterprises’ managerial objectives and provide choices for coal enterprise to realize the
objectives. Section 3 describes the characteristics of coal enterprises’ evaluation system of performance
and the way to achieve the objective of evaluation system. Section 4 provides details of the evaluation
system of performance, and then fleshes out the framework of the evaluation system. Section 5 is
devoted to applications of the evaluation system with the aid of some classic model, and the section 6
concludes.
2.
Reset of the Coal Enterprises’ Managerial Objectives and How to Realize the
Objectives
2.1 Reset of the Coal Enterprises’ Managerial Objectives
In practice, enterprises always center on managerial objectives in the entire business management. With
the guidance of managerial objectives, enterprises do business and design indexes in the evaluation
system of performance.
China is a major coal mining and consumption country3. Coal plays an essential part in primary energy
consumption with a proportion of about 69.3%. And the percent of surplus recoverable reserves of coal
energy is about 70% in conventional energy resources. It is predicted that coal will be the basic energy
in our country by 2020 without any new energy resources be exploited and any new mining technology
be developed. However, it is known that coal enterprises provide a good many primary coal for us,
meanwhile, they bring various wastes, like coal gangue, mine water, gas inlet, washery waste, coal slime
and liquid waste4; coal mining even creates subsidence areas. If these behaviors and phenomenon will
not be controlled, a series of serious environment problems follow, like water pollution, wasting of
resources and so on. The widening bad influence will severely pose threat to the living environment.
Hence, whether or not the pollution and waste in the coal production is pay attention to and effectively
controlled has direct bearing on the realization of the carbon emission reduction, moreover the progress
of low-carbon economy.
At the present stage, many coal mining enterprises blindly exploit the coal energy only for output and
money, in spite of safety in production and effectiveness and quality of the resources. Their picking and
choosing high coal seams gives rise to lots of waste, and poor mining technologies and mining manner
results in ruins in coal seams and losses of associated mineral5. Irresponsibility mining behaviors creates
lots of waste gas, waste water which destroy local atmosphere, soil and geology, along with miserable
3
Data from the Development and Reform Commission shows that the output of raw coal is
approximately 2.965 billion tons in 2009, and it grows by 12.7% from last year.
4
According to statistics, 30% coal is sulfur coal with more than 2% sulfur one unit.
5
Data shows recover rate of mineral resources in our country is only 30%, by comparison, developed
country’s rate is 50%. Every year, 20-30 billion tons renewable resources are wasted.
246
safe accidents. The phenomenon becomes an obstacle to healthy environment and rapid development of
economy and environment, and goes against the principles of low-carbon economy that ask for coal
enterprises to exploit energy effectively and clearly. As a response, coal mining enterprises should adjust
their strategic targets for profit only to sustainable and healthy development.
From the analysis above, we can see coal enterprises’ objectives should be presented in four aspects of
economy, energy consumption, social responsibility and environmental liability. In other words, a coal
enterprise with the “low-carbon and circular development” logo should incorporate the following four
aspects into their management objective: that is economic target, energy consumption target, social
responsibility target and environmental liability target 6 . All in all, the target is for sustainable
development.
2.2 How to Realize the above Objectives
This paper analyzes the way on how to achieve the managerial objectives of coal enterprises. From the
outline of the four aspects of an objective, we can conclude that there are two ways to realize them:
First, the sustainable objectives cannot realize without clean and safe production and effective
exploitation. Safety is one of all-important questions. Through the ages, the high number of incidents
caused concern about safety of mining production, not least because the system is in its fancy. The
reasons are as follows. Coal seams sometimes can be complicated and unexpected; leaders always put
profit and output at a premium, but are unwilling to invest enough money in safety equipment.
Long-term overwork must be another reason. Condition on low-carbon and circular economy, to solve
the prominent problem, enterprises themselves must increase investment, make and implement
production policies and regulations, and strengthen management. Ensure the use of safety equipment;
reinforce a high level of safety awareness. Therefore, this paper suggests adding indexes which reflect
safety monitoring and safety guarantee to the evaluation system of performance, so as to reinforce
management’s awareness and emphasize of the safety problems.
Second, low-carbon and circular economy should rely on technological innovation and policies to create
new economy development mode that can limit and cut down greenhouse gas emission. The nature of
low-carbon is to increase energy consumption efficiency and optimize energy consumption structure.
The government and enterprises must work closely on slowing climate change. Something that circular
economy advocates is an economy development pattern in harmony with environment, which is
distinguished by “matter closed cycle”. It resets the economy activities into a circular pattern: “low
mining—high use—low emissions”. Coal enterprises can learn lessons from the above development
pattern to deal with the coal gangue, mine water, gas inlet, washery waste, coal slime and liquid waste,
etc. In order to optimize structure, theses wastes should be processed in a closed cycle on the principle
of minimization, reusing, recycling. In brief, minimization is to reduce raw material; reusing is to reuse
the intermediate product and by-product; recycling is to recycle the wastes to increase the additional
value.
Minimization is the first step to carry out energy-saving policy from the beginning of the production.
This principle asks for enterprises to use less raw materials and energy to reach the fixed production
purpose. Something that enterprises ought to reduce is not only electricity, fuel and equipment, but also
the emission wastes, industrial sewage, bug dust, SO2, etc. Coal enterprises should move forward to
promote the technology innovation around saving resources. On condition that safety is ensured, create
new methodology and approaches which Increase resource utilization rate and reduce equipment occupy
rate. Make full use of the by-product and recycled material instead of investment in infrastructure and
equipments.
Reusing is a demand from the production procedure. It asks for enterprises to handle with the
procedures in coal mining, as most wastes are produced because enterprises don’t make effective
6
John Elkington raised triple line, and he suggested a company should stick to profits, social
responsibilities and environmental liabilities to develop sustainably. We are inspired.
247
exploits. More reuse can be done with the coal bed gas, terrestrial heat, mine water, the subsidence area
and associated minerals to reduce the resource waste. In addition, extend the lifespan of material using
to prevent resource being waste prematurely. Exploit new uses, for example, mine water can be used to
wash coal and even can become drinking water after further processing; and the subsidence areas can be
farmed and afforested again to attract visitors and farmers.
Recycling is a demand from the final waste. It asks for enterprise to turn waste into things of value and
turn harm into good. The end waste products include coal gangue, coal slime, washery waste and
tailings water. In order to recycle, these wastes can be turned to value things. Coal gangue can be used in
brick making and generating electricity. Coal slime and washery waste can be used in grouting, guniting,
brick making and backfilling subsidence areas to keep coal slime from occupying space and polluting
environment. Polluted tailings water can be recycled through further processing to control the source of
polluted water. Through an exhaust gas recirculation, we can turn waste gas into valuable things. In
short, coal enterprises rely on the coal area to extend industry chain, optimize product structure, and
operate coal gangue- electricity power plant.
3.
Characteristics and Reset of the Coal Enterprises’ Objectives of Evaluation
System of Performance
3.1 Reset of the Coal Enterprises’ Goals of the Evaluation System of Performance
In this section, we discuss how to construct a complete evaluation system of performance based on the
idea of low-carbon and circular economy. The construction of evaluation system of performance should
base on the idea of low-carbon and circular economy at the same time is incompliance with coal
industrial characteristics. The goals we set for the coal enterprises are as follows.
1 We can evaluate the coal enterprises’ economic performance (profitability, operating capacity, and
growth, etc.) through the evaluation system of performance (economic objective).
2 We can evaluate the coal enterprises’ energy consumption and conservation through the evaluation
system of performance (energy consumption objective).
3 We can review the coal enterprises’ implementation of social responsibility (social responsibility
objective).
4 We can appraise the performance in environmental protection (environmental liability).
3.2 The method of Construction of Coal Enterprises’ the Evaluation System of Performance
The method of Construction of Coal Enterprises’ the Evaluation System of Performance is based on the
idea of low-carbon and circular economy. First, we build a framework of the system based on the idea;
and then, we pick some typical indexes on the principle of “reducing, reusing, and recycling”; finally,
we form the system with “eighty- twenty rule” and “Analytic Hierarchy Process” (AHP)
4.
Framework of the Coal Enterprises’ Evaluation System of Performance and
the Indexes
4.1 The framework of Construction of Coal Enterprises’ the Evaluation System of Performance
According to the coal industry characteristics, we can see coal enterprises’ objectives with the
“low-carbon and circular development” logo should be presented in four aspects of economic target,
energy consumption target, social responsibility target and environmental liability target. We describe
the framework in the following figure (see figure 1).
248
Sustainable Development (Total goal)
Business Efficiency
Energy Consumption
Social Responsibliy
Objective
Evrionmental Liability
Control
efficiency
Resource
Reduction
Tax and
safety
Resouce
recycling
Evaluation Index System
Emission
Reduction
Environment
Ptotection
Index
Figure 1 Framework of Evaluation Index System of Performance for Coal Enterprises
4.2 The indexes of Coal Enterprises’ the Evaluation System of Performance
4.2.1 Indexes of operation and business
To reflect the economic operation of coal enterprises, indexes should include:
1. Profitability
The profitability is directly related to the economic efficiency and benefit. Generally, the number of
gross profit is an important indicator in the system of evaluation; nonetheless, it cannot reflect the ability
of making money. Instead, we choose return on assets (ROA), profit margin (PM), return on equity
(ROE), and cost profit margin (CPM) so as to flesh out the indicators from different point of
perspectives to avoid influence from different sizes.
2. Operating ability
Operating ability of any enterprise has direct impact on the profitability. The indicators of operating
ability don’t tell us the ration of input-output; all in all, they mirror the ability of management to keep
the market economy well in hand. In the market economy, these indicators reflect the economy
efficiency on the other hand. These indicators often incorporate total asset turnover (TAT), inventory
turnover (IT), current assets turnover CAT and payable turnover (PT). We also add bad asset turnover
(BAT) into the system to appraise the operating ability. Moreover, bad assets include receivables
( )
249
collectible after three years, prepayment after one year, unearned project in three years, overstock
inventory, idle fixed assets, Unsettled G/L on current assets and deficient assets.
3. Operating risk
Operating risk of the enterprise is from many aspects, and the all-important risk is the risk of operation
on borrowings. We choose cash ration (CA) and liability/ asset ratio (LEV).
4. Capital maintenance
Capital maintenance is the center of the theory of Real return in western countries. It means return is
real on the basis of capital maintenance. But in our country, this theory did exist in name only; much
more serious, enterprises didn’t pay so much attention on it that state-owned property lost severely. So
we choose capital maintenance and increment ratio (CMIR) to know capital appreciate or not.
5. Productive potentials
Mechanization of coal mining production is spreading. For coal enterprises, productive potentials often
exist in the equipments or production lines. We choose net worth to state-owned property ratio
(NWTSOPR) as the auxiliary pointer to measure current economic efficiency.
6. Growth
Growth rate of profit margin (GRPM) is the first choice in those indicators which measure growth. In
the meantime, technical innovation plays an important role in the appreciation of coal products and
extension of the industry chain. Developing new technique can help enterprises diversify and defense
industry risk. Consequently, we put in another ration called research and develop investment intensity
(R&D).
4.2.2 Indexes of energy consumption of coal enterprises
As we know, coal enterprises belong to energy-intensive industry. As a coal enterprise, it needs appraise
its coal consumption situation and coal utilization rate and other resource utilization rate.
1. Coal
Coefficient of recovery in coal face is the indicator we use to examine if the coal resource is utilized
efficiently. Generally speaking, the higher the recovery rate, the better the coal face uses multi-efficiency.
It not only strengthens the complex utilization degree of coal, but also opens up a path for exploit of
secondary resource and product high added value production.
2. Other resources
What is mainly consumed in operating production is water resource and electricity resource. So we use
two indicators: water consumption per ton (WCPT) and electricity power consumption per ton (ECPT).
These two indicators reflect the degree of utilization of water and electricity power.
4.2.3 Indexes of enterprise’s social responsibility and environmental liability
With the development of economics, the coal industry is growing vigorously and coal enterprises are
flourishing. Along with this prosperity, environmental problems and safety problems are on its heels.
Therefore, safety production, energy saving and emission reduction become the arduous task for
governments at all levels and coal enterprises.
1. Social responsibility
One major aspect of the social responsibility of a coal enterprise is economic contribution, so we use
ratio of taxes or profits to be delivered to the state (ROTP) so as to measure its contribution. On the
other hand, safety production is of far reaching importance in coal industry, so we choose mortality per
million tons (MPMT) coal to prevent coal enterprises sacrifice safety production for profit.
2. Environmental liability
As the consumption of coal increases, environmental problems are also of concern. Guided by the
Scientific Outlook of Development, the coal enterprises increase the inputs in environment. We choose
the utilization rate of forest fund (FR) to measure contribution on green responsibility.
Briefly, we show the indexes in table 1.
250
Table 1 The Framework of Evaluation System of Performance
Economic
Index (64)
Profitability
23
ROE
ROA
PM
CPM
Operating Ability 16
TAT
PT
Evaluation System
of Performance for
Coal
Enterprises
(100)
BAT
IT
Risk 9
LEV
CR
Capital Maintenance 5
CMIR
Productive Potentials 4
NWTSOPR
Growth 7
GRPM
R&D
Energy Index
(16)
Social
(15)
Index
Coal 8
Other resource 8
Social Responsibility 15
RR
( )
ECPT(degree)
WCPT cube
ROTP
MPMT
Environmental
Index (5)
5.
Environmental Liability 5
FR
Applications
On the basis of production of the evaluation system above for coal enterprises, we apply the Pareto
principle and Analytic Hierarchy Process to analyze the application of this system.
5.1The indexes of Coal Enterprises’ the Evaluation System of Performance
The Pareto principle (also known as the 80-20 rule) states that, for many events, roughly 80% of the
effects come from 20% of the causes. Italian economist Vilfredo Pareto, who observed in 1906suggested
that 80% of the land in Italy was owned by 20% of the population; he developed the principle by
observing that 20% of the pea pods in his garden contained 80% of the peas. It is a common rule of
thumb in business.
Based on mathematics and psychology, the Analytic Hierarchy Process (AHP) was developed by
Thomas L. Saaty in the 1970s and has been extensively studied and refined since then. It is a structured
251
technique for dealing with complex decisions of multiple goals, multiple criterions and multilevel. AHP,
unlike other decision-making processes, has the capability of handling both qualitative and quantitative
parameters. The three principles of guidance in AHP are decomposition, comparative judgment and
synthesis of priorities (Saaty, 1980, Saaty, 1990). The AHP provides a comprehensive and rational and
integrated framework for structuring a decision problem, for representing and quantifying its elements,
for relating those elements to overall goals, and for evaluating alternative solutions. When AHP is used,
people first decompose decision problem into a hierarchy of more easily comprehended sub-problems,
and the elements in the hierarchy can relate to any aspect of the decision problem. And then, it integrates
qualitative and quantitative criteria and arrives at priorities of alternatives. The AHP converts
evaluations to numerical values that can be processed and compared over the entire range of the problem.
A numerical weight or priority is derived for each element of the hierarchy, allowing diverse and often
incommensurable elements to be compared to one another in a rational and consistent way. Finally,
numerical priorities are calculated for each of the decision alternatives. These numbers represent the
alternatives' relative ability to achieve the decision goal, so they allow a straightforward consideration of
the various courses of action.
5.1.1 AHP procedures and Pareto Principle
1. Build a matrix. Matrix shows results of all such comparisons as follows. A is the goal, and
ui
、u
j
( i, j = 1, 2,..., n ) represent elements. ij represents the relative importance. Of course, we set U11= 1.
Furthermore, if we set Uij = k , then we set Uji= 1/k.
.
u
 u11

 u 21
p =
...

u
 n1
... u1n 

... u 2 n 
... ... 

... u nn 
u12
u 22
...
un2
⑴
2. Eigen value/Eigenvector Method
Eigen values are important tools in several math, science and engineering applications
Eigen value/Eigenvector Method is defined as follows: for square matrix P and vector W,
w = vector of weights
λ = Eigen value of P when PW = λW, ( W -- nonzero)
W is then the eigenvector associated with λ.
det (λI–P) = | λI – P | = 0
Must solve: Pw = λw by solving det (λI – P) = 0
We get λmax.
3. Measure consistency.
⑵
⑶
⑷
CR = CI / RI
RI is the random index.
CI = (λ
⑸
− n) /(n − 1)
max
Use test statistic:
Table 1 provides the numerical value of PI.
Table 2 RI
n
1
2
3
4
5
6
7
8
9
RI
0
0
0.58
0.90
1.12
1.24
1.32
1.41
1.45
252
Rule of Thumb: C.R. < 0.1 or
λmax = n CI = 0
indicates sufficient consistency
①Weights of current efficiency and development potential
Current efficiency and development potential are closely linked. The status of current efficiency has a
direct impact on prospective performance. And the development potentials will guide current efficiency.
According to our judgment, we assign weight of 80 to current efficiency and the other 20 to
development potentials.
Weight of evaluation criteria is decided by relative importance( T·L·Saaty ,1980). The next step in
AHP is to just decide the relative importance of the objectives and systematically evaluate its various
elements by comparing them to one another two at a time.
Table 3 gives the comparison descriptions by 1-9scale.
②
Table 3 Relative Importance of the Objectives By 1-9 Scale
Intensity of Importance
Comparison Description
1
Equal Importance
3
Moderate Importance
5
Strong importance
7
Very Strong Importance
9
Extreme Importance
2,4,6,8
For Compromises Between the Above
We set U11= 1. Furthermore, if we set Uij = k, then we set Uji= 1/k.
5.1.2 Standard
According to standard published in 2007 by The State-owned Assets Supervision and Administration
Commission of the State Council, and the standards from sample enterprise (LV in short), we list the
comparison in table 4 as follows:
Table 4 Comparison Between General Standard and Sample Standard
Objective
Excellent
Good
Equal
Bad
Very Bad
ROE
18.2
12.8
8.3
2.2
-6.9
ROA
12.5
9.8
6.8
1.5
-6.6
PM
30.1
25.9
20.6
12.5
5.1
CPM
17.4
12
7.6
0.9
-9.9
TAT
1.6
1.1
0.6
0.5
0.3
PT
23
15.8
10
5.8
2.3
BAT
0.3
2.2
5.5
9.4
17.5
CAT
3.1
2.2
1.4
0.6
0.2
26.4
15.8
8.1
6.2
4.9
20
15
10
5
0
0.8
1.1
1.6
2.0
3
ⅠProfitability
ⅡOperating Ability
IT
Social Responsibility and
Environmental Liability
Ⅲ
ROTP
WCPT(cube
)
253
ECPT(degree
)
5
6
8
10
20
RR
90
80
70
50
30
FR
60
50
40
30
20
MPMT
1
1.5
2.04
5
10
CMIR
120.1
113.3
106.2
101.6
96.5
LEV
42
50.6
59.6
71.8
81.5
CR
32.5
21.2
10
-5
-12.1
NWTSOPR
90
80
70
60
40
GRPM
23.2
16.9
10.9
-2.5
-13.8
R&D
0.6
0.5
0.4
0.2
0.1
Ⅳ Capital Maintenance
Ⅴ Risk
Ⅵ Productive Potentials
Ⅶ Growth
5.2 The method of appraisement
5.2.1 Calculate the scores
Standard coefficients correspond to five evaluation criterions: 1.0, 0.8, 0.6, 0.4, 0.2, and negative means
very bad. Standard coefficients are level parameters that different parameters reflect different levels.
1. Upper limit base score=weight ×standard coefficient of upper level
2. Lower limit base score = weight ×standard coefficient of lower level
3. Adjusted score = (actual value – standard value)/ (standard coefficient of upper level-standard level)
×(standard coefficient of lower level- standard value)
4. Total score = base score+ adjusted score
According to this method of calculation, we get table 5 of weights of evaluation indexes of coal
enterprises.
Table 5 Weights of Evaluation Indexes for Coal Enterprises
Economic
Profitability
ROE
Index (64)
23
ROA
Operating Ability 16
Evaluation System of
Performance for Coal
Enterprises (100)
Risk 9
254
6
5
PM
5
CPM
7
TAT
3
PT
4
BAT
5
IT
4
LEV
6
CR
3
Capital Maintenance 5
CMIR
5
Productive Potentials 4
NWTSOPR
4
GRPM
4
R&D
3
RR
8
Growth 7
Energy Index
(16)
Coal 8
Other resource 8
Social
(15)
Index
Environmental
Index (5)
Social Responsibility 15
Environmental Liability 5
( )
ECPT(degree)
WCPT cube
4
4
ROTP
5
MPMT
10
FR
5
5.2.2 Evaluation Standard
The borderlines of the evaluation results divide the enterprises’ performance into four types. We order
85, 70, 50and 40 as the borderlines.
1. When the final score reaches 85, the enterprise will get a rating type “Excellent” (A), in detail,
A++≥95; 95 >A+≥90; 90 >A≥85
2. When the final score is between 70 and 85, the enterprise will get a “Good” (B), in detail,
85>B+≥80; 80>B≥75;75>B-≥85.
3. When the final score is between 50 and 70, the enterprise will get an “Equal”(C), in detail,
70>C≥60; 60>C-≥50
4. When the final score is between 40 and 50, the enterprise will get a “Bad” (D).
5. When the final score is below 40, the enterprise will get a “Very Bad” (E).
6.
Conclusion
Coal industry is different from other industry, since it is energy-intensive and highly polluting industry.
Based on the idea of low-carbon and circular economy, not only the coal enterprises should cover the
profitably, operating ability, operating risk, capital maintenance, potentials and growth, but also cover
the consumption of energy and social liability in the evaluation system of performance. Borrowing
method from Pareto principle and AHP to assign weight to indexes, we put the low-carbon and circular
concept into the evaluation system of performance to promote sustainable development for coal
enterprises.
Author in brief:
1. Xie Maohua, male, professor of School of Economics and Management, Inner Mongolia University,
chief of Department of Accounting, guest researcher of China Culture Administration Society, executive
director of Inner Mongolia Accounting Association, visiting scholar in Qinghua. Papers were published
on Finance &Accounting, Group Economy, Chinese Economic Review, Chinese and American
Economic Review, Finance and Accounting Monthly, etc. Works: Method of Cost Control, Method and
Technique of Auditing Practices, etc. TEL: 0471—4992478
2. Hu Weijuan, female, postgraduate in School of Economics and Management, Inner Mongolia
University
255
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