Role of MCS: Boundary system and diagnostic uses of budgets and PMS are more pertinent to operationalizing and managing responsive CSR agendas

 

Strategic CSR directs organisational resources and managerial attention to initiate and operationalize CSR agendas that are consistent with firms’ strategies and are able to differentiate themselves from their competitors, resulting in strengthened strategic positions.

Role of MCS: Belief system and interactive uses of MCS are more effective in facilitating the selection and implementation of Strategic CSR programmes

1. Differentiate between responsive CSR and strategic CSR.

Responsive CSR involves acting as a good corporate citizen, satisfying the evolving needs of stakeholders, and mitigating existing or potential adverse effects of organisational
activities. Short term CSR. Example : donation to the flood victims, something happen in the society then the company take action to help the particular society, unplan CSR, etc

Strategic CSR moves beyond Responsive CSR and directs organisational resources and managerial attention to initiate and operationalise CSR agendas that are consistent with firms’ strategies and are able to differentiate themselves from their competitors, resulting in strengthened strategic positions. Includes in the long term plan, example oil and gas company can implement the strategic CSR. Company really want to do the CSR perposely that will impact the company

2. What are roles of MCS in CSR? 
Management Control System - System that control financial or non financial, budget, performance, 

MCS is a Boundary system and diagnostic uses of budgets and PMS are more pertinent to operationalising and managing Responsive CSR agendas.

MCS is a Belief system and interactive uses of MCS are more effective in facilitating the selection and  implementation of Strategic CSR programmes.

Responsive CSR involves the identification and management of the evolving expectations of a company’s different stakeholders and its existing and potential social and environmental risks. Given that the dimensions of Responsive CSR are more explicit and standardised than those of Strategic CSR, a checklist approach may be adopted to manage Responsive CSR agendas. The boundary system and

diagnostic uses of MCS play a critical role in this process.

The boundary system of MCS in relation to CSR is an explicit set of organisational boundaries that is expressed in negative or minimum terms and defines activities that are considered detrimental to the interests of key stakeholders. The boundary system prevents employees from engaging in actions that expose the firm to social and environmental risks.  This diagnostic use of MCS in relation to

Responsive CSR highlights the aspects critical to stakeholders

and is intended to drive employees to perform and align

their behaviour with stakeholders’ evolving expectations to

promote good corporate citizenship and obtain the license to

operate.

1. Differentiate between responsive CSR and strategic CSR.

Responsive CSR involves companies acting as good citizens and actively mitigating the potentially harmful effects of their value chain on society.  It also involves securing a good corporate citizenship and mitigating existing and potential harms of a firm’s operations. 

Strategic CSR extends beyond these practices and involve initiatives that both differentiate themselves from their competitors and are distinctly beneficial to society and the environment.  Initiatives that would both confer competitive advantage and benefit society. 

2. What are roles of MCS in CSR? 

The roles of MCS in CSR were appropriately being use in boundary system and diagnostic uses of budgets, being used as belief system and interactive uses of MCS are more effective in facilitating the

selection and implementation of Strategic CSR programmes.