Abstract
A growing number of companies are implementing proactive environmental strategies with the objective of gaining competitive advantage through an enhanced reputation, the reduction in production costs, and a first-mover advantage in the green product market. Yet according to the natural-resource-based view, the development and maintenance of unique and valuable environmental capabilities are the central elements allowing companies to gain financial benefit from their proactive environmental strategy. In this context, management control systems can contribute to the development of environmental capabilities by focusing attention on strategic priorities and stimulating dialogue. Through a single case study, and building on Simons’ (Levers of control: how Managers use innovative control systems to drive strategic renewal, Harvard Business School Press, Boston, 1995) four levers of control, we propose a conceptual framework of management control levers that show how companies can enhance (1) stakeholder integration capability through the joint use of belief, boundary, and diagnostic control systems; (2) shared vision capability through the joint use of the belief and boundary systems; (3) organizational learning capability through the use of interactive control systems and to a lesser extent diagnostic control systems; and (4) continuous innovation capability through the use of interactive control systems, belief systems and to a lesser extent diagnostic control systems.
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Appendices
Appendix 1: Main Guidelines for the Interviews with EH&S Team Members
1. EH&S team Description of the job position in the EH&S Team Description of Xerox’s environmental strategy and its evolution i.e., priorities, pollution control, pollution prevention, environmental innovation: product, manufacturing process Role of the EH&S team in the implementation of environmental strategy i.e., set or provide guidelines, managing environmental strategy, challenging environmental performance, reshaping or replacing environmental strategy, monitoring results, reporting data, employee training Certification ISO 14001 Energy Challenge 2012 program and role of the EH&S team in that program i.e., corporate communication about the EC2012 program outside and inside the company. Xerox’s commitment to the EPA Climate Leaders Program Description of the Lean Six Sigma process developed for implementing the Energy Challenge 2012 |
2. Target and goals First target: reduction by 10% greenhouse gas emission between 2002 and 2012 i.e., setting goals, previous analyses, involvement of the manufacturing team or facilities management team Evolution of the target of the program, setting a new program Explanation of the success of the first EC2012 program |
3. Data gathering and analysis Procedure, frequency, measurement tool, monitoring system Who is concerned? What kind of reporting? |
4. Diagnostic control system i.e., description of the goal and objective systems, indicators used to monitor and manage environmental performance, reporting, revision of the goal or objective. i.e., description of the automatic management tool (the Johnson Control Energy and Emissions Management Tool) i.e., audit and certification of the data disclosed |
5. Interactive control system between EH&S team and other managers i.e., meeting between EH&S team and other managers, frequency, objectives, support, face-to-face or team meeting, involvement of the top managers in environmental strategy, description of the “action plans,” description of the strategic uncertainties of Xerox’s corporate environmental strategy |
Appendix 2: NVivo Coding Themes
Hart (1995): Natural-resource-based theory | |
Pollution control and prevention: minimize emissions, effluent, and waste | Pollution control: storage of emissions or effluent, treatment of emissions or effluent, pollution control equipment or device, preserving (protecting) clean air, water, biodiversity Strategy prevention: reduction in emissions or effluent (greenhouse gas emissions), prevention of emissions or effluent, housekeeping, material substitution, manufacturing process innovation, reduction in energy consumption or water consumption, employee involvement, continuous improvement of emission reduction, cost advantage for customers, cost saving for the company |
Product stewardship | Life cycle analysis of the product, supplies return, reuse, recycling program, eco-design of the product, environmental innovation (product), competitive advantage (product), suppliers’ requirements, value chain leverage, long-term approach, green product, leader position |
Simons (1995): four levers of control | |
Belief systems (core values) | Mission statements, vision statements, credo, statements of purpose, target market |
Boundary systems (types of behavior no longer allowed, risks to be avoided) | Clear rules, limits, code of business conduct, operational guidelines, strategic planning systems, assets acquisition regulations, capital budgeting systems |
Interactive control systems (strategic uncertainties) | Face-to-face debate, meeting with operating managers, focus of attention, involvement of top managers, assumptions and action plans of subordinates, concentration on strategic uncertainties, continually challenging, action plans, management tool, reshape or replace the strategy, strategic uncertainties |
Diagnostic control systems (critical performance variables) | Profit plans, budgets—investments, goals, and objectives systems, monitoring and coordination systems, indicators, review of critical performance indicators, correcting deviation, measurement systems, feedback, achievement, audit |
Appendix 3: Inventory of Documentary Data
Type of document | Description | Authors | Date | Diffusion |
|---|---|---|---|---|
Energy Managers’ quarterly newsletter | Environmental Sustainability Manager | March 2008 | Internal | |
Energy challenge 2012 reporting | Health and Safety and Sustainability Department | 2002 and 2006 | Internal/external | |
Global Citizenship Report | Health and Safety and Sustainability Department | 2006 to 2016 | External | |
Environmental Health and Safety Report | Health and Safety and Sustainability Department | 2006 to 2015 | Internal | |
Environmental Protection Agency partnership | Health and Safety and Sustainability Department | 2006 to 2010 | External | |
Preserving Our Planet through Sustainable Innovation and Development | Health and Safety and Sustainability Department | 2011 | External | |
White Paper, EPS Sustainability, Xerox Enterprise Print Service | Environmental Sustainability Manager | 2010 | Internal | |
White paper, Smarter Ways to Green: How to Make Sustainability Succeed in Your Business | Vice President Environment, Health and Safety | 2008 | External | |
Xerox and Paper: A Sustainability Reference Guide | Senior Vice President, Xerox Supplies Business Group | 2008 | Internal and external | |
Xerox and the Environment: Our Sustainability Commitment—Briefing Paper for Xerox Customers | Office and Solution Business Group (marketing product) | 2010 | Internal and external | |
Green Product Specification Development | Product Manager | 2008 and 2010 | Internal | |
Xerox guides customers to print responsibly: Helping to meet the challenge of sustainable printing | Graphic Communication Business Group (marketing printing) | 2010 | Internal and external | |
PowerPoint | Xerox Corporation Environmental Sustainability | Health and Safety and Sustainability Department | 2012 and 2014 | Internal |
PowerPoint | Xerox Enterprise Print Services: Sustainability is smart business | Education and Learning Department | 2009 | Internal |
PowerPoint | Xerox Case Studies—Good for Business, Good for the Environment | Education and Learning Department | 2009 | Internal |
PowerPoint | Xerox Innovation, Good for Business, Good for the Environment Innovation in paper Innovation in toner Innovation in multifunction devices | Education and Learning Department | 2009 | Internal |
PowerPoint | Environmental Sustainability: Our Commitment | Health and Safety and Sustainability Department | 2010 and 2012 | Internal and external |
PowerPoint | Sustainability Reporting | Health and Safety and Sustainability Department | 2010 | Internal |
PowerPoint | Xerox’s GHG Reduction Initiative | Health and Safety and Sustainability Department | 2006 and 2010 | Internal and external |
Excel and internal software | Environmental Performance Metric Report | Health and Safety and Sustainability Department | 2002–2011 | Internal |
Excel and internal software | Greenhouse Gas Emissions reporting | Health and Safety and Sustainability Department | 2002–2011 | Internal |
EC 2012 Revision | Health and Safety and Sustainability Department | 2006 | Internal | |
PowerPoint | Environment Health and Safety Seminars | Health and Safety and Sustainability Department | 2003 2006 2009 | Internal |
PowerPoint | Lean Six Sigma, Environment Modules | Health and Safety and Sustainability Department | 2006 2011 | Internal |
Appendix 4: Inventory of Interviewees and Classification
Function | Hierarchical position | Duration |
|---|---|---|
Vice president, health, safety, and sustainability | Top manager | 1 h 14 min |
Environmental sustainability program manager | Top manager | 1 h 24 min |
Environmental project manager of the EA toner plant (Webster) | Middle manager | 1 h 21 min |
Energy manager for the Xerox Webster campus | Middle manager | 1 h 15 min |
Environmental program manager in charge of energy reporting | Middle managers | 1 h 25 min |
Environmental sustainability manager | Top managers | 1 h 23 min |
Environmental saving reporting | Middle manager | 1 h 28 min |
Environmental engineer focusing on water | Middle manager | 1 h 26 min |
Environmental engineer focusing on air | Top manager | 1 h 05 min |
Environmental engineer focusing on air | Middle manager | 1 h 24 min |
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Albertini, E. The Contribution of Management Control Systems to Environmental Capabilities. J Bus Ethics 159, 1163–1180 (2019). https://doi.org/10.1007/s10551-018-3810-9
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DOI: https://doi.org/10.1007/s10551-018-3810-9