The Use of Management Control Systems to Formulate and Implement CSR Strategy: A Levers of Control Perspective

Authors

Diane-Laure Arjaliès, Ivey Business SchoolFollow
Julia Mundy, University of Greenwich

Document Type

Article

Publication Date

2013

Volume

24

Issue

4

Journal

Management Accounting Research

URL with Digital Object Identifier

https://doi.org/10.1016/j.mar.2013.06.003

Abstract

Little is known about the role of management control systems (MCS) in managing the strategic processes that underpin Corporate Social Responsibility (CSR). To enhance our understanding of this phenomenon, this study employs Simons’ (1995) levers of control framework to explore how organizations leverage MCS in different ways in order to drive strategic renewal and trigger organizational change while simultaneously supporting society’s broader sustainability agenda. Drawing on data gathered from France’s largest listed companies – members of the CAC 40 – we provide insights into the structures and processes that companies employ to design, implement and monitor their CSR strategy. In doing so, we provide evidence of the way that organisations seek to attain their CSR objectives, and of the relationship between the management of CSR and other business processes. Of particular interest is the role of the levers of control in enabling managers to identify and manage threats and opportunities associated with CSR strategy, thus forming risk management processes that support organisations in their attainment of strategic objectives. Furthermore, the study provides evidence suggesting the use of MCS has the potential to contribute to society’s broader sustainability agenda through processes that enable innovation, communication, reporting, and the identification of threats and opportunities.

Notes

• “Highly Cited Research” paper in Management Accounting Research awarded in December 2016 (i.e. one of the 5 most highly cited papers during 2014, 2015 and up until June 2016)
• Nominated for the 2014 Syntec management consulting best article award in the category “Management / Human Resources / Organization”

The article available for download is a pre-print version. The final published version is found in Management Accounting Research and can be found with the following DOI: https://doi.org/10.1016/j.mar.2013.06.003

Citation of this paper:

Arjaliès, D-L., & Mundy J. (2013), The Use of Management Control Systems to Formulate and Implement CSR Strategy: A Levers of Control Perspective, Management Accounting Research, 24(4): 284-300.