Role and implementation of sustainability management control tools: critical aspects in the Italian context

Purpose – The purpose of this paper is to show the relevance attributed to sustainability management control
tools (SMCTs) and their real use. Mainly, this study aims to shed light on the approaches, motivations and
difficulties encountered in SMCTs adoption by the most sustainable Italian companies, as well as their
effectiveness.
Design/methodology/approach – Using a pre-structured qualitative survey method, the authors grasped
information about external and internal dimensions of sustainability management in light of institutional and
resource-based view theories. Data are elaborated with two methods: a regime analysis to assess the relevance
of SMCTs and a descriptive analysis to investigate the “aim”, “which” and “how” of the SMCTs’ use by
companies listed in sustainability indices.
Findings – Informal SMCTs prevailed over formal ones. There is a discrepancy between attention paid to
some tools praised in the literature and their knowledge and use. In addition, a significant gap exists between
what is desired and what is achieved in terms of effectiveness. Further, although sustainability management is
primarily oriented towards the external perspective, SMCTs can be key to improving both the disclosure and
management of sustainability.
Research limitations/implications – The criteria for the selection of the sample resulted in a small number
of analysed companies, which allowed us to gain insight into what happens inside the listed Italian companies
in the most important sustainability indices. These companies have sustainability-oriented management,
which also probably safeguards their advantage linked to inclusion in these indices.
Practical implications – This paper provides food for thought for companies engaged in non-financial
disclosure and for those who aim to implement SMCTs. It shows the need to reinforce formal sustainability
control tools, also through dissemination of major knowledge about the implementation of these tools, and to
encourage sponsorship from top levels of management.
Originality/value – Compared with SMCT research using a theoretical or case study approach, this study
uniquely undertakes extensive research on the perceived effectiveness of SMCTs in achieving sustainability
goals and the difficulties in implementing them, thereby highlighting a discrepancy between some tools
emphasised in the literature and those infrequently used in sustainability-oriented companies.