Implementing CSR activities through management control systems

2019 ◽  
Vol 32 (2) ◽  
pp. 531-555 ◽  
Author(s):  
Lamia Laguir ◽  
Issam Laguir ◽  
Emmanuel Tchemeni
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Structured Interviews ◽  
Content Type ◽  
Global Standards ◽  
Strategic Csr ◽  
Multiple Case ◽  
Corporate Social ◽  
Cross Case Analysis

Purpose The purpose of this paper is to take into account Simons’ (1994) formal levers of control framework and more informal processes to examine how organizations implement and manage corporate social responsibility (CSR) activities through management control systems (MCSs). Design/methodology/approach A multiple-case study was conducted in ten large French organizations. Qualitative data were collected during in-depth semi-structured interviews with the managers who were best informed on CSR practices and MCSs. The authors then performed within-case and cross-case analysis. Findings The study shows that organizations use different MCSs to manage CSR activities directed toward their salient stakeholders – that is, employees, customers, suppliers and community. Specifically, the authors found that social MCSs are used to communicate CSR values, manage risk, evaluate CSR activities, and identify opportunities and threats. In addition, the use of MCSs to implement CSR activities is mainly driven by the need to satisfy salient stakeholder demands, manage legitimacy and reputation issues, and meet top management expectations and enhance their commitment. Last, the use of social MCSs is hindered by a lack of clear strategic CSR objectives and action plans, a lack of global standards and measurement processes for CSR, and a lack of time and financial resources. Originality/value The study addresses recent calls in the literature for research into the ways formal and informal control systems are used to implement CSR activities and provides insight that may stimulate further research.

Integrating management control systems, mindfulness and sustainability: an occupational health and safety perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wahab Shahbaz ◽  
Aymen Sajjad
Keyword(s):  
Occupational Health ◽  
Control Systems ◽  
Organizational Context ◽  
Health And Safety ◽  
Occupational Health And Safety ◽  
Management Control ◽  
Management Control Systems ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this paper is to integrate the notions of management control systems (MCS), mindfulness and sustainability, and introduce a framework demonstrating how sustainability outcomes – specifically occupational health and safety (OHS) improvements – can be accomplished by incorporating mindfulness-based interventions (or mindfulness-based training) as an effective MCS enabler. Design/methodology/approach The authors have conducted an integrative literature review to synthesize the knowledge of the mindfulness, sustainability and MCS literatures with a specific focus on OHS. Findings The findings revealed that there is a dearth of research that has investigated the potential linkages between mindfulness, MCS and sustainability. While some studies have explored the role of MCS in promoting sustainability and corporate social responsibility concepts, as well as the linkages between mindfulness and sustainability, this paper specifically looked at how mindfulness-based interventions can be applied in the organizational context to enhance OHS sustainability outcomes. Research limitations/implications This paper introduces a framework that shows how mindfulness-based interventions, as a means of MCS, can be used to enhance desired OHS sustainability outcomes. Originality/value This paper extends the sustainability, mindfulness and MCS literature by explicating how mindfulness-based interventions can be used as one of the key MCS enablers that support sustainability and OHS outcomes. Accordingly, the authors argue that this is one of the few early review papers that have investigated the potential connections between mindfulness, sustainability and MCS in the OHS context.

scholarly journals Resilience capacities and management control systems in public sector organisations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Enrico Bracci ◽  
Mouhcine Tallaki
Keyword(s):  
Public Sector ◽  
Control Systems ◽  
Organisational Change ◽  
Management Control ◽  
Management Control Systems ◽  
Adaptive Behaviour ◽  
Longitudinal Case Study ◽  
Structured Interviews ◽  
Content Type ◽  
And Coping

Purpose Inspite of the attention resilience receives in relation to public policy and public management, very few studies have analysed the internal mechanics of public sector organisations to see what is producing their resilience. Considering management control systems (MCSs) as the drivers of organisational change, this paper aims to explore their role as determinants of resilience in the public sector. The paper attempts to open the black box of organisational functioning focusing on one complex component. Design/methodology/approach This paper adopted a qualitative approach for this longitudinal case study. This paper used a mix of primary and secondary sources in terms of direct observation, semi-structured interviews and internal document analysis. This paper used a framework drawing on Barbera et al. (2017) and management control’s constraining and facilitating concepts to explore how anticipatory and coping capacities of resilience are supported and reinforced by MCSs. Findings Findings suggest that MCSs support adaptive behaviour and assist decision-making by providing knowledge and ready-to-use answers to cope with external shocks. However, this is found in case of the adoption of facilitating MCSs, which empower managers and employees and are based on stewardship roles. In such a context, MCSs played an essential role in shaping anticipatory and coping capacities. At the same time, financial shocks fostered the investment in MCSs, cyclically strengthening or developing new anticipatory and coping capacities. Originality/value To the best of the authors’ knowledge, this paper is one of the first attempting to identify how facilitating MCSs, as a driver of organisational change, can make an organisation more resilient. It shows how resilience capacities are generated and strengthened via MCSs.

Management control systems and corporate social responsibility: perspectives from a Japanese small company

2018 ◽  
Vol 18 (1) ◽  
pp. 68-80 ◽  
Author(s):  
Masahiro Hosoda
Keyword(s):  
Corporate Social Responsibility ◽  
Control System ◽  
Social Responsibility ◽  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Informal Control ◽  
Content Type ◽  
Formal Control ◽  
Corporate Social

Purpose Corporate social responsibility (CSR) has become part of daily business for small- and medium-sized enterprises (SMEs) in Japan. The purpose of this study is to explore how management control systems (MCSs) can support the translation of activities into CSR actions using a case study of a SME in Japan. Design/methodology/approach The case is based on an interview with a CEO of a SME in Japan. The paper contributes to the discussion on CSR and MCSs and investigates the integration of CSR activities in SMEs in Japan through MCSs. Findings The case company’s formal control systems incorporate environmental and social aspects that are reflected in its top-down, stakeholder-centered approach into CSR through a formal CSR policy. An informal control system is evident and reflected in the CEO’s emphasis on creating shared value by implementing CSR. An interactive control system, a type of formal control system, is useful in the interactions between CEOs and employees and in translating the opinions of stakeholders into CSR actions. Formal control systems can be supported by informal control systems in the implementation of CSR activities. Originality/value This research contributes to the management accounting literature by showing that formal and informal control systems can support the motivation of employees and the integration of stakeholders’ opinions on the implementation of SMEs CSR activities in Japan. The MCS approach also contributes to SMEs in Japan that seek to address the demographic and economic challenges.

Weaving a web of control

2014 ◽  
Vol 27 (4) ◽  
pp. 634-654 ◽  
Author(s):  
Puja Ladva ◽  
Jane Andrew
Keyword(s):  
Control Systems ◽  
Organisational Culture ◽  
Management Control ◽  
Management Control Systems ◽  
Structured Interviews ◽  
Accounting Firms ◽  
Content Type ◽  
Management Controls ◽  
The Relationship ◽  
The Web

Purpose – The purpose of this paper is to explore the relationship between management controls and the work-life balance (WLB) of junior accountants working in four multinational accounting firms using semi-structured interviews. Design/methodology/approach – The authors interviewed junior accountants, asking them about their firms’ time budgeting process, their views on organisational culture and their experience of WLB. Findings – Time budgeting controls and the dominant discourses of “efficiency” and “career” form a web of control within these firms that sustain the long-hours culture. Drawing on the work of Foucault, the authors argue that the web of control is particularly strong because it is not imposed externally by a clearly identifiable source of power. Instead, the interviews revealed how junior accountants actively produce the web of control in order to secure their identity. This is particularly apparent when they speak of their career. Research limitations/implications – This research sheds light on the relationship between management controls and WLB. Management controls are effective in large multinational accounting firms because they work through the emergent identity of young professionals. Originality/value – The link between management control systems and WLB has received little attention from accounting academics. This research offers important insights into the way management control systems and organisational culture may impact the lived experience of WLB within multinational accounting firms.

Synthesizing management control frameworks

2010 ◽  
Vol 14 (1) ◽  
pp. 96-108 ◽  
Author(s):  
Winnie O'Grady ◽  
Paul Rouse ◽  
Cathy Gunn
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Content Type ◽  
Control Framework ◽  
Explicit Consideration ◽  
Multiple Levels ◽  
Viable System ◽  
Levers Of Control ◽  
Practical Implications

PurposeThe purpose of this paper is to investigate the holistic nature of control systems to understand how they operate across organizational levels and manage change.Design/methodology/approachThis paper takes an analytical approach using the viable system model (VSM) to assess the two main frameworks of control reported in the accounting literature.FindingsThe VSM provides an elegant framework for management control systems with explicit consideration of: multiple levels of control, communication channels, interactions with the environment, and the mechanisms for attaining balance between stability and change.Practical implicationsThe evaluation of current management control systems produces specific suggestions for improving the levers of control frameworkOriginality/valueThe VSM has not previously been aligned with management control frameworks.

Paradoxical tensions of the COVID-19 pandemic: a paradox theory perspective on the role of management control systems in helping organizations survive crises

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ralph Kober ◽  
Paul J. Thambar
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Short Term ◽  
Content Type ◽  
Strategic Objectives ◽  
Paradox Theory ◽  
Practical Implications

PurposeThis paper presents paradox theory as a useful theoretical lens for researchers exploring crises such as coronavirus disease 2019 (COVID-19). The authors argue that paradox theory, which emphasizes a “both/and” as opposed to an “either/or” approach, is ideally suited for management control systems (MCS) research on crises.Design/methodology/approachThe authors adopt a revelatory case approach to provide empirical examples of the insights that paradox theory can provide.FindingsThis paper highlights how MCS can be used to simultaneously manage short-term/operational and long-term/strategic objectives to navigate a crisis. Furthermore, it highlights how MCS can be mobilized during crises to identify and embrace opportunities.Practical implicationsThis paper illustrates the importance of MCS focusing on not just the short-term, but also the long-term, and managing multiple objectives in assisting organizations to survive crisis.Originality/valueThis paper highlights the benefits of using paradox theory to understand the role of MCS in helping organizations manage crises and to use a crisis as a source of opportunity.

In the field of tension between creativity and efficiency: a systematic literature review of management control systems for innovation activities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Philipp Lill ◽  
Andreas Wald ◽  
Jan Christoph Munck
Keyword(s):  
Systematic Review ◽  
Control Systems ◽  
Systems Design ◽  
Management Control ◽  
Management Control Systems ◽  
Future Research ◽  
Content Type ◽  
Innovation Activities ◽  
Body Of Knowledge ◽  
Control Systems Design

PurposeThe number of theoretical and empirical research on management control of innovation activities has significantly increased. Existing studies in this field are characterized by a wide dispersion and a multitude of different definitions. The purpose of this article is to provide a systematic review of the literature on management control of innovation activities and to synthesize the current body of knowledge.Design/methodology/approachFollowing a systematic review approach, this article reviews 79 articles on management control for innovation activities from 1959 to 2019 and inductively derives a multi-dimensional framework.FindingsThe review of existing studies advances the debate about the detrimental versus beneficial character of management control systems for innovation, showing that the repressing character of control is not inherent to control itself, but emanates from the design of the respective management control system.Research limitations/implicationsThe multi-dimensional framework connects and combines existing research and thus synthesizes the current state of knowledge in this field. Additionally, the framework can guide practitioners to systematically assess context factors and consequences of their management control systems design, and it shows avenues for future research.Originality/valueThe scientific and practical value of this paper is the convergence of the current body of knowledge consisting of various definitions and conceptualizations and the identification of avenues for future research.

scholarly journals People in suits: a case study of empowerment and control in a non-profit UK organisation

2020 ◽  
Vol 32 (3) ◽  
pp. 511-528
Author(s):  
Roxana Corduneanu ◽  
Laura Lebec
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Interactive Systems ◽  
Employee Perceptions ◽  
Structured Interviews ◽  
Content Type ◽  
Non Profit ◽  
And Control

PurposeDrawing on Simons's levers of control (LoC) framework, the primary aim of this study is to advance an understanding of the balance between empowerment and constraint in a non-profit UK organisation. In particular, this study examines the antecedents and manifestations of LoC (im)balance, in relation to employees' level of engagement with the control systems in place.Design/methodology/approachFor this study, 27 semi-structured interviews were conducted with different organisational members, from directors to non-managerial staff, to gain an in-depth appreciation of the main differences between managerial intentions in the design of management control systems (MCS) and employee perceptions regarding the role of such systems.FindingsThis research reveals that suppression of interactive systems and internal inconsistencies between different types of controls hinder the balance between empowerment and constraint. This imbalance is then found to have important consequences for employee buy-in, in some cases, defeating the purposes of control.Research limitations/implicationsThis study enhances our understanding of the gap between the design of control systems and the employee perceptions of it in an unusual organisational setting (non-profit and bringing together clinical and non-clinical staff and operations).Originality/valueThe study of MCS and its role in organisations has long been the focus of both academic and practitioner research. Yet, while extant literature focused on management's perspective on MCS, few studies have explored employees' attitudes and behaviours that accompany the implementation of control. What is more, little is known about the specific uses and behavioural outcomes of MCS in the context of non-profit organisations. Drawing on Simons's LoC framework, this paper addresses these gaps in the literature and investigates the balance between control and empowerment of employees in a UK non-profit organisation with significant clinical remit.

scholarly journals Bridging management control systems and innovation

2019 ◽  
Vol 16 (3) ◽  
pp. 342-372 ◽  
Author(s):  
Rúben Silva Barros ◽  
Ana Maria Dias Simões da Costa Ferreira
Keyword(s):  
Control Systems ◽  
Methodological Approach ◽  
Management Control ◽  
Management Control Systems ◽  
Positive Role ◽  
Content Type ◽  
Fine Grained ◽  
Qualitative Approaches ◽  
Innovation Mode ◽  
Behavioural Aspects

Purpose The purpose of this study is to present the evolution of thinking on the role of management control systems (MCSs) in innovation, according to the development of control practices, and to provide a reflection on the achievements of the more recent literature. Design/methodology/approach This paper assesses articles, books and book chapters that have explored MCSs in innovation, together with seminal works on management accounting and control. Findings Moving from the traditional phase where MCSs were seen as detrimental to innovation, the literature has now reached a new consensus that attributes a positive role to control. In this recent phase, it arises from the literature that MCSs in the realm of innovation should embrace a multiplicity of controls; MCSs depend on the magnitude and innovation mode of a company; MCSs evolve over time; and that synergies and tensions are expected to arise. Adding these factors to the inherent complexity of innovation, the assertion is that qualitative approaches should be undertaken to infuse the field with more fine-grained evidence. It is also proposed that this methodological approach be used to address the following points: (1) the use of multiple controls; (2) synergies and tensions; and (3) behavioural aspects of controls in relation with innovation. Originality/value The paper is of value for researchers who have an interest in studying the use of MCSs in innovation and in qualitative research and proposes some areas of research that could be explored.

How management control systems enable and constrain integrated thinking

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruth Dimes ◽  
Charl de Villiers
Keyword(s):  
Decision Making ◽  
Control Systems ◽  
Economic Benefits ◽  
Management Control ◽  
Management Control Systems ◽  
Practical Implementation ◽  
Successful Implementation ◽  
Content Type ◽  
Perceived Trust

Purpose This paper aims to examine how management control systems (MCS) can enable and constrain the successful adoption of integrated thinking in an organisation. Design/methodology/approach The study adopts a case study approach, involving in-depth interviews and documentary evidence. Findings The case study organisation perceived trust to be critical to the successful adoption of integrated thinking, and informal social controls with strong endorsement from senior management frequently substituted for more formal technical controls in helping to develop a trust-based organisational culture. These cultural changes improved collaboration and brought economic benefits by encouraging outcome-based decision-making rather than capital-based decision-making, thereby enabling employees to identify and address poorly performing projects earlier. However, established performance measurement systems geared towards reporting and rewarding accounting profits created tension, constraining the potential benefits of integrated thinking by reinforcing business unit protectionism. Practical implications Integrated thinking can be seen as a form of management with the potential to improve organisational outcomes. An improved understanding of factors that might enable or constrain integrated thinking could facilitate its spread. Originality/value Despite several calls for research on the practical implementation of integrated thinking, this has not been studied extensively. To the best of the authors’ knowledge, this study is one of the firsts to contribute to a better understanding of the role of MCS in the successful implementation of integrated thinking in an organisation. The study also contributes to the MCS literature.

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