How Corporation Manage Sustainability

Abstract

Purpose: The purpose of this study is to describe current practice in the use of management control systems to manage sustainability in companies that publicly convey a dedication to sustainability.

Design/methodology/approach: The study is structured around Otley and Ferreia’s (2009) conceptualization of a management control systems. Attention is focused to the aspects of the control systems relating to sustainability. The study is of a descriptive nature and findings are primarily drawn from interviews conducted at the participating companies.

Findings: The companies studied have all set up relevant control capabilities to control for sustainability. This includes assigning responsibility for coordinating and managing the sustainability perspective to departments responsible for sustainability or individual aspects of it, as well as developing capabilities to plan and measure performance related to sustainability. The coherence by which these controls have been implemented, based on broader themes drawn from Otley and Ferreia’s (2009) model, differ somewhat. Some of these themes are more poorly reflected in the companies’ control systems for sustainability than others.

Originality/value: This study contributes to a very limited prior literature on management control systems and sustainability.