The role of RM and PM systems in integrated sustainability: The case of B&C Speakers

Journal title MANAGEMENT CONTROL
Author/s Lorenzo Leto, Diletta Vito
Publishing Year 2024 Issue 2023/3
Language Italian Pages 27 P. 113-139 File size 301 KB
DOI 10.3280/MACO2023-003006
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

This study aims to understand how companies are changing their risk management and performance measurement systems to support the design and execution of companies’ strategies regarding sustainability. This study points out the motiva-tions, the key figures and the actions connected to the adoption of a triple bottom line (i.e., People-Planet-Profit) strategy by conducting an exploratory case study on an Italian-listed company. Our results show that external forces, such as pres-sure from institutional investors, play a relevant role as motivators of the shift from the financial bottom line to the triple bottom line, just like the organizational cul-ture acts as an essential facilitator. Furthermore, the analysis highlights that changes in risk management and performance measurement systems are necessary for supporting the long-term sustainable success of a company. Finally, this study draws attention to research gaps in the literature to favor the development of future studies on these topics.

Keywords: Integrated sustainability, Risk management, Performance Measure-ment Systems, Explorative case study

  1. Asif M., Searcy C., Zutshi A., Ahmad N. (2011), An integrated management systems approach to corporate sustainability, European Business Review, 23(4), pp. 353-367.
  2. Abdul Aziz N. A., Manab N., Othman S. (2016), Sustainability Risk Management (SRM): An Extension of Enterprise Risk Management (ERM) Concept, International Journal of Management and Sustainability, 5, pp. 1-10.
  3. Arjaliès D.L., Mundy J. (2013), The use of management control systems to manage CSR strategy: A levers of control perspective, Management Accounting Research, 24(4), pp. 284-300.
  4. Asiaei K., O’Connor N. G., Moghaddam M., Bontis N., Sidhu J. (2023), Corporate social responsibility and performance measurement systems in Iran: A levers of control perspective, Corporate Social Responsibility and Environmental Management, 30(2), pp. 574-588.
  5. Bansal P. (2005), Evolving sustainably: A longitudinal study of corporate sustainable development, Strategic Management Journal, 26(3), pp. 197-218.
  6. Baumüller J., Sopp K. (2021), Double materiality and the shift from non-financial to European sustainability reporting: Review, outlook and implications, Journal of Applied Accounting Research, 23(1), pp. 8-28.
  7. Berg F., Kölbel J.F., Rigobon R. (2022), Aggregate Confusion: The Divergence of ESG Ratings, Review of Finance, 26(6), pp. 1315-1344.
  8. Beusch P., Frisk J.E., Rosén M., Dilla W. (2022), Management control for sustainability: Towards integrated systems, Management Accounting Research, 54, 100777.
  9. Bonn I., Fisher J. (2011), Sustainability: The missing ingredient in strategy, Journal of Business Strategy, 32(1), pp. 5-14.
  10. Bourne M. (2005), Researching performance measurement system implementation: The dynamics of success and failure, Production Planning and Control, 16(2), pp. 101-113.
  11. Bourne M., Mills J., Wilcox M., Neely A., Platts K. (2000), Designing, implementing and updating performance measurement systems, International Journal of Operations and Production Management, 20(7), pp. 754-771.
  12. Castellano N. (2011), Modelli e misure di performance aziendale: analisi della letteratura e spunti di ricerca, Management Control, 1, pp. 41-63.
  13. Castellano N. (2012), La misurazione delle performance per le piccole imprese. Strumenti di misurazione e processi di controllo, Giappichelli Editore, Torino.
  14. Castellano N., Felden C. (2021), Management control systems for sustainability and sustainability of management control systems, Management Control, 2, pp. 5-10.
  15. Catturi G., Coda V., Sorci C. (1995). Etica ed obiettivi d’impresa, a cura di A. Riccaboni, Dipartimento di Studi Aziendali e Sociali, Siena.
  16. Chiucchi M.S., Giuliani M., Marasca S. (2014), The design, implementation and use of intellectual capital measurements: a case study, Management Control, 2, pp. 143-168.
  17. Coda V. (2020), Lo scopo dell’impresa, Impresa progetto, Electronic Journal of Management, 3, pp. 1-26.
  18. Commissione Europea (2019), Guidelines on nonfinancial reporting: Supplement on reporting climate-related information.
  19. Corsi K., Arru B. (2020), Role and implementation of sustainability management control tools: Critical aspects in the Italian context, Accounting, Auditing & Accountability Journal, 34(9), pp. 29-56.
  20. Chirieleison (2002), Le strategie sociali nel governo dell’azienda, Giuffrè, Milano.
  21. Christensen D.M., Serafeim G., Sikochi A. (2022), Why is Corporate Virtue in the Eye of The Beholder? The Case of ESG Ratings, The Accounting Review, 97(1), pp. 147-175.
  22. De Cristofaro T., Gulluscio C. (2023), In Search of Double Materiality in Non-Financial Reports: First Empirical Evidence, Sustainability, 15(2), Article 2.
  23. Deegan C., Rankin M. (1997), The materiality of environmental information to users of annual reports, Accounting, Auditing & Accountability Journal, 10(4), pp. 562-583.
  24. D’Onza G. (2008), Il sistema di controllo interno nella prospettiva del risk management, Giuffrè, collana Studi economico-aziendali E. Giannessi.
  25. D’Onza G. (2022), L’orientamento delle aziende ad uno sviluppo sostenibile: Quale contributo da parte dei sistemi di management e controllo?, Management Control, 1, pp. 5-15.
  26. Lisi I. E. (2018), Determinants and Performance Effects of Social Performance Measurement Systems, Journal of Business Ethics, 152(1), pp. 225-251.
  27. Escrig-Olmedo E., Muñoz-Torres M., Fernandez-Izquierdo M. (2010), Socially responsible investing: Sustainability indices, ESG rating and information provider agencies, International Journal of Sustainable Economy, 2, pp. 442-461.
  28. Fahimnia B., Pournader M., Siemsen E., Bendoly E., Wang C. (2019), Behavioral Operations and Supply Chain Management – A Review and Literature Mapping, Decision Sciences, 50(6), pp. 1127-1183.
  29. Fasan M., Bianchi S. (2017), L’azienda sostenibile. Trend, strumenti e case study, Edizioni Ca’ Foscari, Venezia.
  30. Figge F., Hahn T., Schaltegger S., Wagner M. (2002), The sustainability balanced scorecard – Linking sustainability management to business strategy, Business Strategy and the Environment, 11(5), pp. 269-284.
  31. George R.A., Siti-Nabiha A.K., Jalaludin D., Abdalla Y.A. (2016), Barriers to and enablers of sustainability integration in the performance management systems of an oil and gas company, Journal of Cleaner Production, 136, pp. 197-212.
  32. Giannakis M., Papadopoulos T. (2016), Supply chain sustainability: A risk management approach, International Journal of Production Economics, 171, pp. 455-470.
  33. Giovannoni E., Fabietti G. (2013), What is sustainability? A review of the concept and its applications, Integrated reporting: Concepts and cases that redefine corporate accountability, pp. 21-40.
  34. Gond J.P., Grubnic S., Herzig C., Moon J. (2012), Configuring management control systems: Theorizing the integration of strategy and sustainability, Management Accounting Research, 23(3), pp. 205-223.
  35. Hristov I., Appolloni A. (2022), Stakeholders’ engagement in the business strategy as a key driver to increase companies’ performance: Evidence from managerial and stakeholders’ practices, Business Strategy and the Environment, 31(4), pp. 1488-1503.
  36. Hristov I., Chirico A., Ranalli F., Camilli R. (2022), La pianificazione della sostenibilità nelle aziende familiari: Il ruolo dei key value drivers, Management Control, 3.
  37. Hopkin P. (2018), Fundamentals of Risk Management: Understanding, Evaluating and Implementing Effective Risk Management, Kogan Page Publishers, Fifth edition.
  38. Jo H., Na H. (2012), Does CSR Reduce Firm Risk? Evidence from Controversial Industry Sectors, Journal of Business Ethics, 110(4), pp. 441-456.
  39. Kaplan R.S., Norton D.P. (1996), Linking the Balanced Scorecard to Strategy, California Management Review, 39(1), pp. 53-79.
  40. Karwowski M., Raulinajtys‐Grzybek M. (2021), The application of corporate social responsibility (CSR) actions for mitigation of environmental, social, corporate governance (ESG) and reputational risk in integrated reports, Corporate Social Responsibility and Environmental Management, 28(4), pp. 1270-1284.
  41. Kimbrough M.D., Wang X. (Frank), Wei S., Zhang J. (Iris) (2022), Does Voluntary ESG Reporting Resolve Disagreement among ESG Rating Agencies?, European Accounting Review, 0(0), pp. 1-33.
  42. Kleindorfer P.R., Singhal K., Van Wassenhove L.N. (2005), Sustainable Operations Management, Production and Operations Management, 14(4), pp. 482-492.
  43. Laguir L., Laguir I., Tchemeni E. (2019), Implementing CSR activities through management control systems: A formal and informal control perspective, Accounting, Auditing and Accountability Journal, 32(2), pp. 531-555.
  44. Levy Orelli R., Zanin F. (2021), Governing the firm: Innovation, performance and risk, Management Control, 2, pp. 5-14.
  45. Lindgreen A., Swaen V., Maon F. (2009), Introduction: Corporate Social Responsibility Implementation, Journal of Business Ethics, 85(2), pp. 251-256.
  46. Lozano R. (2015), A Holistic Perspective on Corporate Sustainability Drivers, Corporate Social Responsibility and Environmental Management, 22(1), pp. 32-44.
  47. Lu H., Liu X., Falkenberg L. (2022), Investigating the Impact of Corporate Social Responsibility (CSR) on Risk Management Practices, Business & Society, 61(2), pp. 496-534.
  48. Matacena A. (1993), La responsabilità sociale: da vincolo ad obiettivo. Verso una ridefinizione del finalismo d’impresa, In, AA.VV., Istituzioni di economia d’Azienda. Scritti in onore di Carlo Masini, Tomo I, EGEA, Milano.
  49. McWilliams A., Siegel D. (2001), Corporate social responsibility: A theory of the firm perspective, Academy of Management Review, 26(1), pp. 117-127.
  50. Mio C. (2021), L’azienda sostenibile, Editori Laterza, Bari.
  51. Mio C., Costantini A., Panfilo S. (2022), Performance measurement tools for sustainable business: A systematic literature review on the sustainability balanced scorecard use, Corporate Social Responsibility and Environmental Management, 29(2), pp. 367-384.
  52. Qrunfleh S., Tarafdar M. (2014), Supply chain information systems strategy: Impacts on supply chain performance and firm performance, International Journal of Production Economics, 147, pp. 340-350.
  53. Palmer T.B., Flanagan D.J. (2016), The sustainable company: Looking at goals for people, planet and profits. Journal of Business Strategy, 37(6), pp. 28-38.
  54. Perrini F., Tencati A. (2011), Corporate Social Responsibility: Un nuovo approccio strategico alla gestione d’impresa. EGEA, Milano.
  55. Porter M. E., Kramer M. R. (2006), The link between competitive advantage and corporate social responsibility, Harvard business review, 84(12), pp. 78-92.
  56. Porter M.E., Kramer M. R. (2011), The Big Idea: Creating Shared Value. How to Reinvent Capitalism – and Unleash a Wave of Innovation and Growth. Harvard Business Review, 89, pp. 62-77.
  57. Riccaboni A., Leone L.E. (2010), Implementing strategies through management control systems: The case of sustainability, International Journal of Productivity and Performance Management, 59(2), pp. 130-144.
  58. Scapens R. W. (2004), Chapter 15 – Doing Case Study Research, In C. Humphrey e B. Lee (Eds.), The Real Life Guide to Accounting Research, Elsevier, pp. 257-279.
  59. Searcy C. (2012), Corporate Sustainability Performance Measurement Systems: A Review and Research Agenda, Journal of Business Ethics, 107(3), pp. 239-253.
  60. Seuring S., Müller M. (2008), From a literature review to a conceptual framework for sustainable supply chain management, Journal of Cleaner Production, 16(15), pp. 1699-1710.
  61. Sgrò F., Palazzi F., Ciambotti M., Gelsomini M. (2020), The design, implementation and use of intellectual capital measurements: a case study, Management Control, 1, pp. 19-38.
  62. Shiu Y.-M., Yang S.-L. (2017), Does engagement in corporate social responsibility provide strategic insurance-like effects?, Strategic Management Journal, 38(2), pp. 455-470.
  63. Simons R. (1995), Levers of Control, How Managers Use Innovative Control Systems to Drive Strategic Renewal, Harvard Business School Press, Boston, MA.
  64. Sobczak A., Havard C. (2015), Stakeholders’ Influence on French Unions’ CSR Strategies, Journal of Business Ethics, 129, pp. 311-324.
  65. Stoian C., Gilman M. (2017). Corporate Social Responsibility That “Pays”: A Strategic Approach to CSR for SMEs, Journal of Small Business Management, 55(1), pp. 5-31.
  66. UN, United Nation (2015), Transforming our world: the 2030 Agenda for Sustainable Development, A/RES/70/1.
  67. Wang Z., Sarkis J. (2013). Investigating the relationship of sustainable supply chain management with corporate financial performance, International Journal of Productivity and Performance Management, 62(8), pp. 871-888.
  68. Wijethilake C., Lama T. (2019), Sustainability core values and sustainability risk management: Moderating effects of top management commitment and stakeholder pressure, Business Strategy and the Environment, 28(1), pp. 143-154.
  69. Wong W.C., Batten J.A., Ahmad A.H., Mohamed-Arshad S.B., Nordin S., Adzis A.A. (2021), Does ESG certification add firm value?, Finance Research Letters, 39, 101593.
  70. WCED, World Commission on Economic Development (1987), Our Common Future, Oxford University Press, Oxford.
  71. Yin R.K. (2014), Case Study Research: Design and Methods, 5th ed., Sage, Los Angeles.
  72. Zhang F., Zhu L. (2019), Enhancing corporate sustainable development: Stakeholder pressures, organizational learning, and green innovation, Business Strategy and the Environment, 28(6), pp. 1012-1026.

Lorenzo Leto, Diletta Vito, Il contributo dei sistemi di RM e PM alla sostenibilità integrata: il caso B&C Speakers in "MANAGEMENT CONTROL" 3/2023, pp 113-139, DOI: 10.3280/MACO2023-003006