Controlling the Space of Equal Opportunity: A framework for management control systems regarding anti-discrimination and diversity

Abstract: Purpose: The purpose of this study was two-fold. First, we aimed to develop a framework concerning how to directly and indirectly control discrimination in the workplace using Man- agement Control Systems (MCS). Second, we wanted to examine whether this framework is practically applicable in multinational enterprises (MNE). Methodology: The first part of the purpose was achieved through conducting a literature study concerning MCS and discrimination. We combined existing knowledge of both MCS and an- tecedents of discrimination in one developed framework. For the second part of the purpose, we performed a case study. Semi-structured interviews concerning discrimination, MCS and the MCS in place to control discrimination were conducted with higher-level managers of one MNE in southern Sweden. Findings: Based on existing literature, we developed a framework that includes environmental and individual factors that might influence discrimination and diversity in the workplace, the MCS that can be used in order to decrease discrimination and/or increase diversity and the possible consequences of discrimination, diversity and the related MCS. Our empirical study found evidence that MCS are employed with the purpose of directly and indirectly controlling discrimination in MNEs. The developed framework was supported by empirical data. However, the original framework was expanded to fit all data that was important for our research. We believe that the final developed framework is general enough to encompass data relevant to discrimination but still parsimonious enough to avoid the inclusion of irrelevant data. Limitations: Due to the lack of extensive data, generalisations are more difficult to make. The empirical part of this study focused on finding data validating the developed theoretical frame- work, and thus did not measure the effectiveness of management control systems in place to combat discrimination. Finally, during the study we only interviewed top-level managers, which made it more difficult to draw conclusions concerning the existence and application of MCS throughout the entire organisation. Practical Implications: We believe managers of MNEs could use the framework of the current study as a foundation for the development and/or optimisation of MCS in their organisation. The framework could contribute to increasing awareness, and transparency about the uncon- trollable external and individual factors that could influence the level of discrimination and diversity, and the effectiveness of MCS in an organisation. The framework increases visibility and clarity of the existing MCS in an organisation. This would then serve as a starting point for development and improvement of MCS for controlling discrimination, supplying practitioners with one common language.