Sustainability Management Control Practice: A Study of German SMEs

Media coverage and public perception of topics such as child labor, exploitation of workers, and ecological malpractice have risen considerably over the last years. A rising number of executives therefore consider sustainability issues both in their companies and in companies´ supply chains. However, a holistic approach towards sustainability requires management control (also referred to as management accounting). Employing control practices and state-of-the art sustainability information systems can be seen as the preconditions to be compliant with laws and regulations, to provide data for different stakeholders and reports, and to facilitate economic success. To provide empiric evidence on sustainability management control (SMC), we conducted a study on practices undertaken by SMEs in Germany. We present the results compiled from 74 participants (37 providing full answers to our questionnaire). We sketch the status quo and provide recommendations for companies.