Integration of CSR into Management Control Systems : A focus on the social and environmental pillars through four case studies within the food industry

The purpose of this research is to improve the understanding of the organizational role of CSR and more specifically the sustainable development implementation process into various companies’ Management Control Systems (MCS). It aims to determine crucial internal and external factors influencing the CSR integration and evaluate the role of controls carried out during this process. To handle CSR complexity, a qualitative study has been conducted through five interviews among four companies from the food industry, more precisely, dairy, beverage, and catering fields. It gives us an insight into the social and environmental measures’ integration into the companies’ activities. To get an overview of the procedures for applying, following-up and controlling these initiatives and recognize CSR actors, we selected companies that differ in terms of size, strategy, and goals. Overall, this paper provides contribution to the existing CSR implementation four-level model designed by Szczanowicz and Saniuk (2014). Building on the cases’ findings and the literature examined, a framework is proposed that provides the basis for the effective integration of CSR into MCS. In line with past research, the study finds how CSR integration process into MCS, that is into the planning, reporting, evaluation, and rewards systems, is influenced by six factors: legislation, consumers’ expectations, competition, organizational structure, corporate willingness to engage with stakeholders and managerial attitudes. Based on these key internal and external variables, two types of approaches towards sustainable development implementation are highlighted. The main contribution of this study is that it demonstrates that the approaches adopted by the company towards CSR, either proactive or reactive, will affect the effectiveness of the CSR measures and indicators integration into MCS. Significant findings regarding proactive companies’ behavior have been formulized as drivers for an effective CSR implementation and thus contribute to the model. This framework is to be used by organizations willing to develop their sustainability commitment and respond to societal growing expectations. Managers and CEO should review the design of the MCS in order to better consider CSR