The Use of Management Control Systems to Manage CSR Strategy: A Levers of Control Perspective

17 Pages Posted: 25 Apr 2013 Last revised: 29 Mar 2015

See all articles by Diane-Laure Arjaliès

Diane-Laure Arjaliès

Ivey Business School at Western University

Julia Mundy

University of Greenwich

Date Written: April 25, 2013

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.

Keywords: Corporate Social Responsibility, CSR Strategy, Levers of Control, Management Control Systems, Sustainability

JEL Classification: M14, M21, M41

Suggested Citation

Arjaliès, Diane-Laure and Mundy, Julia, The Use of Management Control Systems to Manage CSR Strategy: A Levers of Control Perspective (April 25, 2013). 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.. Available at SSRN: https://ssrn.com/abstract=2256325

Diane-Laure Arjaliès (Contact Author)

Ivey Business School at Western University ( email )

London, Ontario
Canada

HOME PAGE: http://www.ivey.uwo.ca/faculty/directory/diane-laure-arjalies/

Julia Mundy

University of Greenwich ( email )

30 Park Row
Greenwich
London, SE10 9LS
United Kingdom

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