How PMS can be used to implement sustainability in food manufacturing companies

Abstract: Purpose: The aim of this study is to shed a light on the possible link between CSR and PMS. We explore whether and under which conditions PMS can be used as a tool to enforce sustainability. In order to do that, we provide a set of propositions about the factors that influence the decisions of organizations to implement a PMS to realize the objectives of sustainability. Methodology: Qualitative research based on an inductive method. We based our findings on the extant academic literature and interviews conducted in three Scandinavian food companies. Theoretical framework: In the first part, we examine the literature on sustainability and we discuss its three dimensions (economic, environmental, social). In the second part, we use the studies made by Otley and Ferreira (2009), Malmi and Brown (2008) and Simons (1995) to describe the four cornerstones of PMS: objectives, measures, targets, rewards. Empirical framework: We have conducted three semi-structured interviews in three Scandinavian food companies: Findus Sverige AB, Cloetta AB, and Arla Foods. We have collected archival material on these companies (websites, annual and CSR reports) and examined their sustainability practices along both the three dimensions of sustainability (economic, environmental, social) and the four steps of a PMS (objectives, measures, targets, rewards). Analysis: We compare both the three companies interviewed for our study and the findings of our research with the theory examined in the theoretical framework. In addition, a set of propositions that summarize our findings is presented. Discussion and conclusion: In the final part, the results of our research are synthesized. What we found is that the companies interviewed extended their PMS for standard operations to the CSR field. All of them had some sort of CSR strategy, strive to measure sustainability objectives, fix targets and provide financial or non-financial incentives, but not punishments, for having achieved the prefixed targets.