How the drivers behind reporting affect the relationship between management control systems and sustainability reporting: An empirical study

Abstract: The aim of this study is to provide empirical evidence on how the drivers behind SR affect the relationship between MCS and SR. The theoretical framework addresses literature on sustainability reporting and management control systems. We adopted the framework by Malmi and Brown (2008) to define the management control systems. Furthermore, three theoretical perspectives are presented to categorize the drivers behind SR. Based on the literature findings, four propositions were developed. Information was collected through semi-structured interviews with eight organizations. In addition, we gathered data from the organizations’ sustainability- or integrated reports to complement the fieldwork findings. Findings The empirical findings suggest that the drivers behind SR do have an effect on the relationship between SR and MCS. Yet, the extent to which these drivers influence the interplay was not consistent with all of the propositions. This study contributes to existing literature by providing empirical insights on how the drivers behind reporting affect the relationship between MCS and SR. Moreover, prior research focused on a few elements of internal control systems. The package of controls framework by Malmi and Brown (2008) allowed us to provide a more complete overview of the organizations’ MCS.