Controlling Corporate Social Responsibility with Management Control Systems: A study of four companies in Sweden

Abstract: Purpose: The purpose of this study is to examine and contribute with some practical insights on how Management Control Systems (MCS) can be used by companies to control their Corporate Social Responsibility (CSR). Methodology: A qualitative research method has been used to collect data. Data was collected through semi-structured interviews with four different companies in the food industry and in the construction industry. The empirical data was used to analyze how companies use MCS to control CSR. Theoretical framework: The empirical data will be analyzed by using the framework by Malmi and Brown (2008). Malmi and Brown (2008) are studying four decades of MCS research, resulting in a package of MCS, making it a comprehensive analytical tool. The MCS package includes administrative controls, planning controls, cultural controls, cybernetic controls and reward and compensation controls. Conclusion: The control systems in the MCS package can be used to control the employees’ behavior. Administrative controls are used to engage the entire organization in CSR. Planning controls are used to ensure that the entire organization is working in the same direction. Cultural controls are used to communicate and create a commitment to CSR throughout the entire organization. Cybernetic controls are used to control performance in CSR. Reward and compensation controls are used to control and motivate employees to be socially responsible.