Proactive Strategic Responses to Corporate Sustainability Pressures: A Sustainability Control System Framework

Abstract

Purpose – The purpose of this paper is to develop a framework which sheds new light on how sustainability control systems (SCS) can be used in proactive strategic responses to corporate sustainability pressures.

Design/Methodology/Approach – Corporate sustainability pressures are identified using insights from institutional theory and the resource-based view of the firm.

Findings – The paper presents an integrated framework showing the corporate sustainability pressures, proactive strategic responses to these pressures, and how organizations might use SCS in their responses to the corporate sustainability pressures they face.

Practical Implications – The proposed framework shows how organizations can use SCS in proactive strategic responses to corporate sustainability pressures.

Originality/Value – The paper suggests that instead of using traditional financial-oriented management control systems, organizations need more focus on emerging SCS as a means of achieving sustainability objectives. In particular, the paper proposes different SCS tools that can be used in proactive strategic responses to sustainability pressures in terms of (i) specifying and communicating sustainability objectives, (ii) monitoring sustainability performance, and (iii) providing motivation by linking sustainability rewards to performance.

Citation

Wijethilake, C. and Ekanayake, A. (2018), "Proactive Strategic Responses to Corporate Sustainability Pressures: A Sustainability Control System Framework", Malina, M.A. (Ed.) Advances in Management Accounting (Advances in Management Accounting, Vol. 30), Emerald Publishing Limited, Leeds, pp. 129-173. https://doi.org/10.1108/S1474-787120180000030006