Role and implementation of sustainability management control tools: critical aspects in the Italian context

Abstract

PurposeThe purpose of this paper is to show the relevance attributed to sustainability management control tools (SMCTs) and their real use. Mainly, this study aims to shed light on the approaches, motivations and difficulties encountered in SMCTs adoption by the most sustainable Italian companies, as well as their effectiveness.Design/methodology/approachUsing a pre-structured qualitative survey method, the authors grasped information about external and internal dimensions of sustainability management in light of institutional and resource-based view theories. Data are elaborated with two methods: a regime analysis to assess the relevance of SMCTs and a descriptive analysis to investigate the “aim”, “which” and “how” of the SMCTs' use by companies listed in sustainability indices.FindingsInformal SMCTs prevailed over formal ones. There is a discrepancy between attention paid to some tools praised in the literature and their knowledge and use. In addition, a significant gap exists between what is desired and what is achieved in terms of effectiveness. Further, although sustainability management is primarily oriented towards the external perspective, SMCTs can be key to improving both the disclosure and management of sustainability.Research limitations/implicationsThe criteria for the selection of the sample resulted in a small number of analysed companies, which allowed us to gain insight into what happens inside the listed Italian companies in the most important sustainability indices. These companies have sustainability-oriented management, which also probably safeguards their advantage linked to inclusion in these indices.Practical implicationsThis paper provides food for thought for companies engaged in non-financial disclosure and for those who aim to implement SMCTs. It shows the need to reinforce formal sustainability control tools, also through dissemination of major knowledge about the implementation of these tools, and to encourage sponsorship from top levels of management.Originality/valueCompared with SMCT research using a theoretical or case study approach, this study uniquely undertakes extensive research on the perceived effectiveness of SMCTs in achieving sustainability goals and the difficulties in implementing them, thereby highlighting a discrepancy between some tools emphasised in the literature and those infrequently used in sustainability-oriented companies.

Developing a sustainability implementation framework: insights from academic research on tools, initiatives and approaches

“…The majority of TIAs have been analysed on a conceptual level and in case studies (Corsi & Arru, 2020;Windolph et al, 2014) but only a few studies analyse their implementation (for companies), e.g. TIAs have better implementation results when combined (Lozano, 2020), and their effective use can reduce environmental impacts (Hörisch et al, 2015).…”

“…Although there has been considerable research on each of the TIAs published in the literature (Corsi & Arru, 2020), there has been limited efforts on the implementation of TIAs in academic research. This includes descriptive approaches by using bibliometric methods (Meseguer-Sánchez et al, 2021;Ye et al, 2020), or a limited number of tools, e.g.…”

“…A number of efforts have been developed to help implement sustainability, e.g. in organisations (Corsi & Arru, 2020;Hörisch et al, 2015;Lozano, 2020); policy design (Nadin, 2001); and, academic research (Hallstedt & Nylander, 2019;Hugé et al, 2015). Two positions can be discerned in sustainability implementation: (1) 'implementation frameworks'; and, (2) tools, initiatives and approaches (TIAs).…”

Sustainable Supply Chains: Evidence from Small and Medium-Sized Manufacturers

“…Previously, corporate social responsibility (CSR) mainly referred to what companies were required to contribute socially and ethically [42,43]; however, globalization, SD, and other concerns have resulted in the extension of CSR to human rights, diversity, and the environment [44,45]. Enterprises increasingly feel internal and external pressures that encourage them to embrace sustainability and appropriate SD management [46]. This is also demonstrates how CSR, as a new tool, fits into the current corporate responsibility or sustainability framework in order to complete the picture of corporate sustainability [11].…”

“…The sustainability department can be seen as an inimitable resource. In the division, the skills and abilities of managers are integrated and reorganized to create new strategic value, which shows substantive empowerment towards sustainability [46]. The main task of senior management personnel is to combine environmental management with strategic leadership and organizational development Hypothesis 1 (H1).…”