Management Control Systems for Sustainable Supply Chain Operations and Corporate Social Responsibility

MANAGEMENT CONTROL SYSTEMS ON SUSTAINABLE SUPPLY CHAIN OPERATIONS AND CORPORATE SOCIAL RESPONSIBILITY Abstract This study aims to explore the integration of sustainable practices within supply chain management (SCM) through the lens of Management Control Systems (MCS). It addresses the growing imperative for businesses to align economic goals with environmental and social responsibilities in response to escalating stakeholder demands and regulatory pressures. The study investigates the role of different Management Control Systems (MCS) in facilitating the adoption of Green Supply Chain Management (GSCM) and Corporate Social Responsibility (CSR) as strategic imperatives. In pursuit of these objectives, Robert Simons’ Levers of Control framework has been taken as the focal starting point and extended through an extensive literature review targetting the theoretical findings on various contemporary frameworks of Management Control systems. Incorporating evidence from theoretical findings, the effectiveness of different control mechanisms to strategy adaptation on global supply chains has been analyzed by a case study of a global manufacturer. This study is utilized to illustrate practical applications of these concepts by conducting interviews with the chosen company. The findings contribute to the broader discourse on sustainable business practices, offering insights into the challenges and opportunities of embedding sustainability within supply chain operations through effective management control mechanisms. Keywords: supply chain, management control, sustainability, corporate social responsibility, strategy adaption.