Environmentally driven mode of business development: a management control perspective

• Published in: Scandinavian journal of management 2000, Vol.16 (3), p.305-333
• Main Authors: Jansson, Åse, Nilsson, Fredrik, Rapp, Birger
• Format: Article
• Language: English
• Subjects: Business strategy; Business strategy Corporate strategy Environmental management systems Environmentally driven mode of business development Management control systems; Corporate strategy; Environmental management systems; Environmentally driven mode of business development; Management control systems
• ISSN: 0956-5221; 1873-3387
• DOI: 10.1016/S0956-5221(99)00022-6

A prerequisite for successful business development is that the control system is designed and used in such a way that strategically important areas can be planned and followed up. Thus, it must be possible to relate results on the quality front, for example, to the company's strategy, which is why quality systems are often integrated with the overall system of control. Environmental management systems, on the other hand, often tend to lead a life of their own, quite disconnected from the overall control system with its routines for strategic planning and follow-up. This can perhaps explain why environmental work has not become a natural part of corporate business development, despite the market for environmentally friendly products. In this article, we therefore focus particularly on control systems and their role in the promotion of an environmentally driven mode of business development. It appears that the integration of environmental management systems with other control systems has been found to be important. The tentative model presented here indicates the conditions under which such integration is possible. It also shows how a company's approach to environmentally driven business development can fall into various phases. The model includes three dimensions: (1) strategy, (2) control systems, and (3) attitude to environmental work. A number of hypotheses are formulated regarding the importance of these dimensions for the successful promotion of an environmentally driven mode of business development in large companies. The article concludes with some suggestions as to how the model can be used in further research.