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Management Control Systems and the Integration of the Sustainable Development Goals into Business Models

Author

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  • Marina Florêncio

    (School of Economics and Management, University of Minho, 4710-057 Braga, Portugal)

  • Lídia Oliveira

    (School of Economics and Management, University of Minho, 4710-057 Braga, Portugal)

  • Helena Costa Oliveira

    (Porto Accounting and Business School, Polytechnic of Porto, 4200-465 Porto, Portugal)

Abstract

Since the introduction of Agenda 2030 and the Sustainable Development Goals (SDGs), companies play a central role in promoting sustainable development. Management control became essential to support the SGDs’ integration into business models. This qualitative and interpretative study relies on a Brazilian company proactive in sustainability—Natura—and analyzes its management controls for sustainability using the Malmi and Brown framework. Natura’s external reports were used, along with public interviews with its sustainability key actors. The findings suggest the existence of broad management control, comprising planning, cybernetic, reward and compensation, administrative and cultural controls. Additionally, strong formal and informal management controls for sustainability are juxtaposed. The company’s culture and values are the main motivation for integrating the SDGs. It was found that Natura has been introducing increasingly innovative cybernetic controls, with emphasis on environmental profit and loss, social profit and loss, and integrated profit and loss tools. The research contributes to a greater awareness of the company role in achieving the SDGs, and the importance of their integration into business models. This study also adds to the management control literature, responding to the research calls concerning the role of management control tools to achieve SDGs.

Suggested Citation

  • Marina Florêncio & Lídia Oliveira & Helena Costa Oliveira, 2023. "Management Control Systems and the Integration of the Sustainable Development Goals into Business Models," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2246-:d:1046721
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    References listed on IDEAS

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    1. Jan Bebbington & Jeffrey Unerman, 2018. "Achieving the United Nations Sustainable Development Goals," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 31(1), pages 2-24, January.
    2. Regina Scheyvens & Glenn Banks & Emma Hughes, 2016. "The Private Sector and the SDGs: The Need to Move Beyond ‘Business as Usual’," Sustainable Development, John Wiley & Sons, Ltd., vol. 24(6), pages 371-382, November.
    3. Lueg, Rainer & Radlach, Ronny, 2016. "Managing sustainable development with management control systems: A literature review," European Management Journal, Elsevier, vol. 34(2), pages 158-171.
    4. Leanne Johnstone, 2019. "Theorising and conceptualising the sustainability control system for effective sustainability management," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(1), pages 25-64, April.
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    Cited by:

    1. Caropul Mendes & Hugo Raposo & Ricardo Ferraz & José Torres Farinha, 2023. "The Economic Management of Physical Assets: The Practical Case of an Urban Passenger Transport Company in Portugal," Sustainability, MDPI, vol. 15(15), pages 1-19, July.
    2. Stefanie Einhorn & Bernhard Fietz & Thomas W. Guenther & Edeltraud Guenther, 2024. "The relationship of organizational culture with management control systems and environmental management control systems," Review of Managerial Science, Springer, vol. 18(8), pages 2321-2371, August.

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