Management control systems and corporate social responsibility: perspectives from a Japanese small company

2018 ◽  
Vol 18 (1) ◽  
pp. 68-80 ◽  
Author(s):  
Masahiro Hosoda
Keyword(s):  
Corporate Social Responsibility ◽  
Control System ◽  
Social Responsibility ◽  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Informal Control ◽  
Content Type ◽  
Formal Control ◽  
Corporate Social

Purpose Corporate social responsibility (CSR) has become part of daily business for small- and medium-sized enterprises (SMEs) in Japan. The purpose of this study is to explore how management control systems (MCSs) can support the translation of activities into CSR actions using a case study of a SME in Japan. Design/methodology/approach The case is based on an interview with a CEO of a SME in Japan. The paper contributes to the discussion on CSR and MCSs and investigates the integration of CSR activities in SMEs in Japan through MCSs. Findings The case company’s formal control systems incorporate environmental and social aspects that are reflected in its top-down, stakeholder-centered approach into CSR through a formal CSR policy. An informal control system is evident and reflected in the CEO’s emphasis on creating shared value by implementing CSR. An interactive control system, a type of formal control system, is useful in the interactions between CEOs and employees and in translating the opinions of stakeholders into CSR actions. Formal control systems can be supported by informal control systems in the implementation of CSR activities. Originality/value This research contributes to the management accounting literature by showing that formal and informal control systems can support the motivation of employees and the integration of stakeholders’ opinions on the implementation of SMEs CSR activities in Japan. The MCS approach also contributes to SMEs in Japan that seek to address the demographic and economic challenges.

scholarly journals MENUJU SISTEM PENGENDALIAN MANAJEMEN BERTANGGUNG JAWAB SOSIAL STUDI PADA PT. PELINDO MARINE SERVICE SURABAYA

InFestasi ◽  
2019 ◽  
Vol 15 (1) ◽  
pp. 46
Author(s):  
Nurul Kompyurini
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Control Systems ◽  
Theoretical Foundation ◽  
Management Control ◽  
Management Control Systems ◽  
Research Articles ◽  
Management Control System ◽  
Stakeholder Groups ◽  
Corporate Social

<p><em>This study has two objectives. First, to find out how corporate social responsibility (CSR) is defined, and second, to find out whether CSR has been integrated in the management control system (MCS). The theoretical foundation is built from various research articles and literature on corporate social responsibility and management control systems. The object of this research was PT. Pelindo Marine Service Surabaya (PT. PMS). The data in this study comes from interviews with company management.</em></p><p><em>The findings in this study are that the company cannot determine the objectives of social responsibility related to its stakeholders. This contributes to the absence of integration of social responsibility into the MCS. The lack of social responsibility goals related to stakeholder groups has caused the integration of these aspects into MCS to be hampered, and this has the potential to reflect the organization's seriousness in following its stakeholder approach.</em></p>

scholarly journals MENUJU SISTEM PENGENDALIAN MANAJEMEN BERTANGGUNG JAWAB SOSIAL STUDI PADA PT. PELINDO MARINE SERVICE SURABAYA

InFestasi ◽  
2019 ◽  
Vol 14 (2) ◽  
pp. 46
Author(s):  
Nurul Kompyurini
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Control Systems ◽  
Theoretical Foundation ◽  
Management Control ◽  
Management Control Systems ◽  
Research Articles ◽  
Management Control System ◽  
Stakeholder Groups ◽  
Corporate Social

<p><em>This study has two objectives. First, to find out how corporate social responsibility (CSR) is defined, and second, to find out whether CSR has been integrated in the management control system (MCS). The theoretical foundation is built from various research articles and literature on corporate social responsibility and management control systems. The object of this research was PT. Pelindo Marine Service Surabaya (PT. PMS). The data in this study comes from interviews with company management.</em></p><p><em>The findings in this study are that the company cannot determine the objectives of social responsibility related to its stakeholders. This contributes to the absence of integration of social responsibility into the MCS. The lack of social responsibility goals related to stakeholder groups has caused the integration of these aspects into MCS to be hampered, and this has the potential to reflect the organization's seriousness in following its stakeholder approach.</em></p>

Implementing CSR activities through management control systems

2019 ◽  
Vol 32 (2) ◽  
pp. 531-555 ◽  
Author(s):  
Lamia Laguir ◽  
Issam Laguir ◽  
Emmanuel Tchemeni
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Structured Interviews ◽  
Content Type ◽  
Global Standards ◽  
Strategic Csr ◽  
Multiple Case ◽  
Corporate Social ◽  
Cross Case Analysis

Purpose The 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/approach A 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. Findings The 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/value The 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.

Corporate Social Responsibility: An Integrative Approach in the Mining Industry

2017 ◽  
Vol 8 (3) ◽  
pp. 19-37 ◽  
Author(s):  
Maria do Céu Gaspar Alves ◽  
Margarida Maria Mendes Rodrigues
Keyword(s):  
Corporate Social Responsibility ◽  
Control System ◽  
Social Responsibility ◽  
Social Impact ◽  
Management Practice ◽  
Mining Industry ◽  
Management Control ◽  
Integrative Approach ◽  
Management Control System ◽  
Corporate Social

The mining industry has a huge environmental and social impact in the country/region where is located, consequently its contribution for sustainable development has been widely discussed. Corporate social responsibility (CSR) represents a challenge for this industry, namely, its inclusion as a common management practice integrated in the company´s management control system. For such, it´s imperative that there is a balance between the economic, environmental and social company's concerns. The aim of this article is to study that challenge in a Portuguese subsidiary belonging to a Japanese economic group. The data were collected through interviews and document analysis. The results suggest that CSR practices are not integrated in the management control system, are not part of a long-term environment strategy, and only reflect compliance with Portuguese legislation. It is expected, with this study, to contribute for the literature enrichment about CSR in multinationals companies operating in the extractive industry.

Outsourcing mandated corporate social responsibility in India: risks and performance

2019 ◽  
Vol 15 (3) ◽  
pp. 453-472 ◽  
Author(s):  
Nava Subramaniam ◽  
Monika Kansal ◽  
Dessalegn Getie Mihret ◽  
Shekar Babu
Keyword(s):  
Social Capital ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Service Providers ◽  
Management Control ◽  
Principal Agent ◽  
Control Mechanisms ◽  
Content Type ◽  
Bridging Capital ◽  
Corporate Social

Purpose This paper aims to assess the risks and challenges of corporate social responsibility (CSR) management in the Indian-mandated CSR ecosystem from a service purchaser–supplier dualistic perspective and the role management control systems (MCS) and social capital play in managing such risks and challenges. Design/methodology/approach This study undertook a qualitative approach that involved in-depth interviews of 22 CSR directors, managers or chief executive officers from 13 central public sector enterprises (CPSEs) that had purchased CSR services and nine managers of non-government organisations (NGOs) serving as CSR suppliers. Data analysis was founded on the principal–agent and social capital theoretical perspectives. Findings A highly bureaucratic, time-pressured mandated environment poses several goal congruence and adverse selection threats to outsourced CSR project arrangements. A mix of formal and informal control mechanisms is critical for enhancing trust or bonding between service purchasers and service providers and enriching bridging capital or access to resources derived from interpersonal connections between NGOs and communities. Practical implications NGOs and CPSEs may benefit from understanding each other’s goals and culture and using appropriate formal and informal MCS for managing CSR expectations and outcomes. Originality/value Drawing on a unique mandatory CSR regime, this study offers principal–agent and social capital perspectives on CSR programme delivery, highlighting the importance of various formal and informal MCS in lowering agency costs in outsourced CSR relationships.

Corporate Social Responsibility

2019 ◽  
pp. 1135-1154
Author(s):  
Maria do Céu Gaspar Alves ◽  
Margarida Maria Mendes Rodrigues
Keyword(s):  
Corporate Social Responsibility ◽  
Control System ◽  
Social Responsibility ◽  
Social Impact ◽  
Management Practice ◽  
Mining Industry ◽  
Management Control ◽  
Management Control System ◽  
Corporate Social

The mining industry has a huge environmental and social impact in the country/region where is located, consequently its contribution for sustainable development has been widely discussed. Corporate social responsibility (CSR) represents a challenge for this industry, namely, its inclusion as a common management practice integrated in the company´s management control system. For such, it´s imperative that there is a balance between the economic, environmental and social company's concerns. The aim of this article is to study that challenge in a Portuguese subsidiary belonging to a Japanese economic group. The data were collected through interviews and document analysis. The results suggest that CSR practices are not integrated in the management control system, are not part of a long-term environment strategy, and only reflect compliance with Portuguese legislation. It is expected, with this study, to contribute for the literature enrichment about CSR in multinationals companies operating in the extractive industry.

Integrating management control systems, mindfulness and sustainability: an occupational health and safety perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wahab Shahbaz ◽  
Aymen Sajjad
Keyword(s):  
Occupational Health ◽  
Control Systems ◽  
Organizational Context ◽  
Health And Safety ◽  
Occupational Health And Safety ◽  
Management Control ◽  
Management Control Systems ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this paper is to integrate the notions of management control systems (MCS), mindfulness and sustainability, and introduce a framework demonstrating how sustainability outcomes – specifically occupational health and safety (OHS) improvements – can be accomplished by incorporating mindfulness-based interventions (or mindfulness-based training) as an effective MCS enabler. Design/methodology/approach The authors have conducted an integrative literature review to synthesize the knowledge of the mindfulness, sustainability and MCS literatures with a specific focus on OHS. Findings The findings revealed that there is a dearth of research that has investigated the potential linkages between mindfulness, MCS and sustainability. While some studies have explored the role of MCS in promoting sustainability and corporate social responsibility concepts, as well as the linkages between mindfulness and sustainability, this paper specifically looked at how mindfulness-based interventions can be applied in the organizational context to enhance OHS sustainability outcomes. Research limitations/implications This paper introduces a framework that shows how mindfulness-based interventions, as a means of MCS, can be used to enhance desired OHS sustainability outcomes. Originality/value This paper extends the sustainability, mindfulness and MCS literature by explicating how mindfulness-based interventions can be used as one of the key MCS enablers that support sustainability and OHS outcomes. Accordingly, the authors argue that this is one of the few early review papers that have investigated the potential connections between mindfulness, sustainability and MCS in the OHS context.

scholarly journals Management control system, corporate social responsibility, and firm performance

2019 ◽  
Vol 6 (3) ◽  
pp. 1354-1368 ◽  
Author(s):  
Agus Ismaya Hasanudin ◽  
Yuliansyah Yuliansyah ◽  
Jamaliah Said ◽  
Christin Susilowati ◽  
Muafi Muafi
Keyword(s):  
Corporate Social Responsibility ◽  
Control System ◽  
Firm Performance ◽  
Social Responsibility ◽  
Management Control ◽  
Management Control System ◽  
Corporate Social

Corporate social responsibility and earnings management in the EU: a panel data analysis approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Panagiotis E. Dimitropoulos
Keyword(s):  
Corporate Social Responsibility ◽  
Panel Data ◽  
Social Responsibility ◽  
Earnings Management ◽  
Financial Reporting ◽  
Negative Association ◽  
Content Type ◽  
Corporate Social ◽  
The Eu

Purpose Over the past decades, corporate social responsibility (CSR) has been considered as a significant corporate strategy and also has been documented as a main information dissemination mechanism of corporations to shareholders, creditors and other external stakeholders. This fact makes the CSR activities and CSR performance interconnected with the quality of firms’ financial reporting. The purpose of this paper is to study the impact of CSR performance on the earnings management (EM) behaviour using a sample from 24 European Union (EU) countries summing up to 121,154 firm-year observations over the period 2003–2018. Design/methodology/approach The study uses a multi-country data set with various dimensions of CSR performance including indexes regarding workforce, community relations, product responsibility and human rights protection. The empirical analysis is conducted with panel data regressions. Findings Evidence supports the negative association between CSR and EM indicating that high CSR performing firms are associated with less income smoothing and discretionary accruals, thus with higher financial reporting quality. Practical implications Regulatory agencies in the EU could use the findings of the study for the improvement of the accounting framework via enhancing the use and publications of social and environmental responsibility information and reports. Social implications Also, the current paper could be of interest not only to academic researchers but also to potential and existing investors in European corporations. The negative association between CSR performance and EM could be used by investors in assessing the risk of firms and the quality and reliability of their financial information. Originality/value This is the first study within the EU, which considers the multi-facet characteristics of CSR on the quality of accounting earnings and offers useful policy implications for regulators and investors.

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