Theorising and conceptualising the sustainability control system for effective sustainability management

Abstract

This conceptual paper explores the iterative relationship between system design and use for the development process of sustainability control systems (SCS). Building upon Adler and Borys' seminal framework (Adm Sci Q 41(4):61-89, 1996) as an analytical tool, it suggests that SCS are characteristically distinct, and more research into the dual role of control (i.e. control over based on system design and control in situ based on system use by the individual user) is necessary for future theorisations of the SCS. It poses that for sustainable futures that extend beyond organisational boundaries, more attention is required on individual general employees in management accounting and control frameworks as instrumental for performance outcomes. To this end, individual values, borne from the extra-organisational context, are considered important alongside organisational ones for the development of SCS. Thus, the paper bridges perspectives on system characteristics, the individual and performance outcomes by offering a theoretical framework for future research. It also extends studies on accounting as a social practice by emphasising the extra-organisational factors that influence internal accounting systems. Finally, it expounds upon the notion of social control as an individual-level phenomenon, necessary for sustainability. This expanded theoretical perspective also has implications for practice by encouraging managers to think strategically about how systems are received from the perspective of the user. This can encourage more commitment to the sustainability cause from the outset, as well as over spatial and temporal boundaries.

Do chief sustainability officers and CSR committees influence CSR-related outcomes? A structured literature review based on empirical-quantitative research findings

“…Since the financial crisis of 2008/09, many reform initiatives on sustainable corporate governance and sustainable management control were discussed and finalised from an international perspective (e.g., Feder and Weißenberger 2019;Ghosh et al 2019;Johnstone 2019;Lingnau et al 2019). Boards of directors are motivated to engage in implementing a sustainability management system and increasing their sustainability expertise.…”

“…Regarding increased research on business case(s) for CSR (Reinhardt et al 2020;Salzmann et al 2005), firm value substantially may be affected negatively through damage to firm reputation as a consequence of corporate irresponsibility. Sustainable management control regarding CSR-related board expertise represents a strategy to decrease conflicts of interest between management and different stakeholder groups, and to strengthen firm reputation (e.g., Feder and Weißenberger 2019;Ghosh et al 2019;Johnstone 2019;Lingnau et al 2019).…”

Ecological Management Accounting—Taking into Account Sustainability, Does Accounting Have Far to Travel?

“…The environmental entity must be central to any debate on ecological development. This means starting with the impact on the environment and working backwards to the organization-changing the emphasis allows a clearer ecological standard to be established and not seen as a nice add on [68,70].…”

“…In terms of the findings, the linkage of EMA and Sustainability are explored as separate steams with limited cross over [65]. Three of the papers explore the development of environmental management accounting systems in firms-including how this can trigger environmental innovation [66], and how control systems can be both within and over the organization systems-extending the framework for control [68] and have a positive impact on environmental strategies [69].…”

The Role of Structural Context in Making Business Sense of Investments for Sustainability–A Case Study

“…This study is also limited to the formal management control elements related to the investment process. Future studies should therefore address aspects related to informal and social controls, such as culture and behavioral aspects [68,87,88], and add the dimension of social control to acknowledge both the organizations' and the involved decision-makers' norms and values, which has been advocated in recent studies on sustainability control systems, to enable more effective sustainability management [89].…”