Implementing CSR activities through management control systems: A formal and informal control perspective

PurposeThe purpose of this paper is to take into account Simons’ (1994) formal levers of control framework and more informal processes to examine how organizations implement and manage corporate social responsibility (CSR) activities through management control systems (MCSs).Design/methodology/appro...

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Bibliographic Details
Published in:Accounting, auditing & accountability journal auditing & accountability journal, 2019-05, Vol.32 (2), p.531-555
Main Authors: Laguir, Lamia, Laguir, Issam, Tchemeni, Emmanuel
Format: Article
Language:English
Subjects:
Case studies
Community support
Control systems
Corporate responsibility
Customers
Interviews
Legitimacy
Management controls
Measurement
Social responsibility
Society
Stakeholders
Stockholders
Strategic planning
Sustainability
Top management
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Summary:PurposeThe purpose of this paper is to take into account Simons’ (1994) formal levers of control framework and more informal processes to examine how organizations implement and manage corporate social responsibility (CSR) activities through management control systems (MCSs).Design/methodology/approachA multiple-case study was conducted in ten large French organizations. Qualitative data were collected during in-depth semi-structured interviews with the managers who were best informed on CSR practices and MCSs. The authors then performed within-case and cross-case analysis.FindingsThe study shows that organizations use different MCSs to manage CSR activities directed toward their salient stakeholders – that is, employees, customers, suppliers and community. Specifically, the authors found that social MCSs are used to communicate CSR values, manage risk, evaluate CSR activities, and identify opportunities and threats. In addition, the use of MCSs to implement CSR activities is mainly driven by the need to satisfy salient stakeholder demands, manage legitimacy and reputation issues, and meet top management expectations and enhance their commitment. Last, the use of social MCSs is hindered by a lack of clear strategic CSR objectives and action plans, a lack of global standards and measurement processes for CSR, and a lack of time and financial resources.Originality/valueThe study addresses recent calls in the literature for research into the ways formal and informal control systems are used to implement CSR activities and provides insight that may stimulate further research.
ISSN:0951-3574
1758-4205
DOI:10.1108/AAAJ-05-2016-2566