Greening the black box: integrating the environment and management control systems

Sundin, H; Brown, DA

Greening the black box: integrating the environment and management control systems

Sundin, H Brown, DA

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Publication Type:: Journal Article
Citation:: Accounting, Auditing and Accountability Journal, 2017, 30 (3), pp. 620 - 642
Issue Date:: 2017-01-01

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Field	Value	Language
dc.contributor.author	Sundin, H	en_US
dc.contributor.author	Brown, DA	en_US
dc.date.issued	2017-01-01	en_US
dc.identifier.citation	Accounting, Auditing and Accountability Journal, 2017, 30 (3), pp. 620 - 642	en_US
dc.identifier.issn	0951-3574	en_US
dc.identifier.uri	http://hdl.handle.net/10453/124235
dc.description.abstract	© 2017, © Emerald Publishing Limited. Purpose: The purpose of this paper is to adopt an agency theory approach to investigate the integration of environmental issues into management control systems (MCS). Prior environmental accounting research has focussed on increasing organisations’ environmental accountability by “monitoring” through external reporting to stakeholders. However, this overlooks the alignment of agents’ interests within the firm. Design/methodology/approach: A qualitative case study is undertaken in a large Australian listed property trust to investigate how agents’ interests may be integrated with environmental objectives through the use of MCS. Findings: From the case an analytical framework is developed to illustrate how environmental issues are incorporated into organisational behaviour through MCS. The findings include, single objective environmental MCS; multiple objective MCS, which include priorities that specify environmental and economic trade-offs; and balancing MCS, which provide overarching decision-making principles without priorities. Practical implications: The findings provide examples of how an organisation may integrate environmental issues across a range of MCS and the things to consider in doing so. Originality/value: This paper draws on an agency perspective as an approach to incorporate environmental issues into MCS and to align behaviour. It explains a new way in which tensions can be managed. This study is one of the first to adopt the control package approach in investigating the incorporation of environmental issues in MCS.	en_US
dc.relation.ispartof	Accounting, Auditing and Accountability Journal	en_US
dc.relation.isbasedon	10.1108/AAAJ-03-2014-1649	en_US
dc.subject.classification	Accounting	en_US
dc.title	Greening the black box: integrating the environment and management control systems	en_US
dc.type	Journal Article
utslib.citation.volume	3	en_US
utslib.citation.volume	30	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access
pubs.issue	3	en_US
pubs.publication-status	Published	en_US
pubs.volume	30	en_US

Abstract:

© 2017, © Emerald Publishing Limited. Purpose: The purpose of this paper is to adopt an agency theory approach to investigate the integration of environmental issues into management control systems (MCS). Prior environmental accounting research has focussed on increasing organisations’ environmental accountability by “monitoring” through external reporting to stakeholders. However, this overlooks the alignment of agents’ interests within the firm. Design/methodology/approach: A qualitative case study is undertaken in a large Australian listed property trust to investigate how agents’ interests may be integrated with environmental objectives through the use of MCS. Findings: From the case an analytical framework is developed to illustrate how environmental issues are incorporated into organisational behaviour through MCS. The findings include, single objective environmental MCS; multiple objective MCS, which include priorities that specify environmental and economic trade-offs; and balancing MCS, which provide overarching decision-making principles without priorities. Practical implications: The findings provide examples of how an organisation may integrate environmental issues across a range of MCS and the things to consider in doing so. Originality/value: This paper draws on an agency perspective as an approach to incorporate environmental issues into MCS and to align behaviour. It explains a new way in which tensions can be managed. This study is one of the first to adopt the control package approach in investigating the incorporation of environmental issues in MCS.

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http://hdl.handle.net/10453/124235