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Barriers to and Enablers of Sustainability Integration in the Performance Management Systems of an Oil and Gas Company

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Abstract

The social and environmental impacts of the petroleum industry have serious consequences and call for sustainable solutions and practices. Embedding sustainability into organisations is vital to address these issues, and requires the integration of sustainability into performance management systems. The aim of this paper is to investigate the barriers to, and enablers of, sustainability integration in the performance management systems of an oil and gas company. A qualitative case study has been used to identify the stages and means of integration in the organisation, based on Gond et al.’s (2012) framework depicting the role of control systems in supporting sustainability integration within strategy. The findings revealed that although cognitive, organisational and technical enablers moved integration of sustainability forward in the organisation, certain cognitive barriers considerably affected the attainment of full integration. Institutional pressures provided the impetus for the development of enablers, giving rise to several implications for governments, academics and other parties. The study shows that sustainability integration in performance management systems could lead to better management and control of sustainability performance in organisations. This study provides a more comprehensive approach towards understanding the integration of sustainability in control systems from a socio-technical perspective.

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... The macroeconomic climate and the state of the Alberta and Canadian petroleum industry affect investment in any type of innovation, including cleantech. Reduced profits for an oil and gas firm means reduced availability of net positive cash flow to fund cleantech innovations (George et al. 2016). When rationalizing investments in a period of declining profits, oil and gas firms focus on investments with stronger proven returns, which can have the consequence of de-emphasizing cleantech opportunities in capital plans (George et al. 2016). ...
... Reduced profits for an oil and gas firm means reduced availability of net positive cash flow to fund cleantech innovations (George et al. 2016). When rationalizing investments in a period of declining profits, oil and gas firms focus on investments with stronger proven returns, which can have the consequence of de-emphasizing cleantech opportunities in capital plans (George et al. 2016). Seetharaman et al. (2019) observe that both government and firm-level support for cleantech innovations declines in economic downturns: rather than government support acting as a substitute for declining private support, both end up being pro-cyclical. ...
... At an extreme level, industry efforts to reduce the negative environmental consequences of production can actually drive these investors away. George et al. (2016) note that oil and gas companies attempting to communicate sustainability efforts to investors can face accusations of "green-washing": under-representing their environmental footprint or over-representing their efforts to mitigate that footprint. If investors perceive a firm is cynical (rather than earnest) in its actions, they may look elsewhere to invest. ...
Article
Innovative clean technologies are part of the solution to reducing greenhouse gas emissions in both Canada and Alberta, particularly in the latter’s petroleum industry. However, while governments and their agencies may provide policies and financial support, proponents of cleantech still face numerous barriers to full deployment and commercialization. To navigate the innovation and funding process successfully, it’s crucial for proponents to know the factors that impact the effective commercialization of cleantech innovations. They must also understand the role policies play in either supporting or hindering favourable outcomes. Start-ups require support that focuses on innovation with a strong commercial potential, while scale-ups need to rely on proven strengths if they want to obtain private sector support for growth. Granting agencies and governments have an important role in supporting innovation. More clearly demonstrating and communicating their due diligence around funding decisions justifies expenditure of public money. Moreover, their decisions can and should send a signal to private sector financiers whether a certain innovation represents a good investment. Due diligence equally works to signal financiers when a specific project does not merit investment. Innovative clean technologies are part of the solution to reducing greenhouse gas emissions in both Canada and Alberta, particularly in the latter’s petroleum industry. However, while governments and their agencies may provide policies and financial support, proponents of cleantech still face numerous barriers to full deployment and commercialization. To navigate the innovation and funding process successfully, it’s crucial for proponents to know the factors that impact the effective commercialization of cleantech innovations. They must also understand the role policies play in either supporting or hindering favourable outcomes. Start-ups require support that focuses on innovation with a strong commercial potential, while scale-ups need to rely on proven strengths if they want to obtain private sector support for growth. Granting agencies and governments have an important role in supporting innovation. More clearly demonstrating and communicating their due diligence around funding decisions justifies expenditure of public money. Moreover, their decisions can and should send a signal to private sector financiers whether a certain innovation represents a good investment. Due diligence equally works to signal financiers when a specific project does not merit investment. The need to find innovative solutions to reducing emissions may seem pressing, but the race should not be to the swiftest. De-risking for commercialization means that a proponent must firmly establish that the technology works, is economically feasible and can attain sufficient market penetration for a return on investment to the prospective financier, as well as provide socio-economic and environmental benefits. Trying to simplify or speed up the stages of innovation and the funding process means proponents can be exposed to incompletely proven and riskier technologies, which can damage credibility with financiers. A balance must be struck between the financier’s wish to expedite the de-risking process and the need to avoid inadequate de-risking which can jeopardize the project and its funding at a later stage. Distinctions must also be made between firm-level support, which allows a company more flexibility in pursuing or cancelling projects, and project-level supports, in which the funding is specifically targeted for use in the development of a particular innovation and has a defined end point. Cleantech innovation in Alberta faces added hurdles associated with a post-2014 economic downturn that has reduced some firms’ cash flows and has made firms, as well as government, less inclined to support cleantech innovations. This situation makes it crucial for innovation proponents seeking funding to distinguish clearly between a proposed project’s economic and environmental benefits. A technology whose primary benefit is reducing emissions is susceptible to changes in emissions pricing or regulations, and thus is not an attractive candidate for investors. An innovation that primarily reduces costs but offers a secondary environmental benefit is a better investment because it is much less sensitive to policy changes. Alberta innovators must make sure they emphasize the economic benefits, and do their due diligence and careful de-risking if they want to surmount the added obstacles. Cleantech innovation doesn’t have to become a casualty of the provincial economic environment if the proper steps in the innovative and fiscal processes are conscientiously followed.
... These skepticisms lead people and societies to question whether oil and gas companies are serious about practicing and addressing their disclosed commitments or paying lip service to these goals. This skepticism evolves mainly due to oil companies focusing on producing clean forms of fossil fuels that are far from "green", leading them to be exposed to greenwashing (George et al., 2016;Grasso, 2019). ...
... Therefore, oil companies should strive to have an environmentally sound image, mainly through adherence to sustainability indices in the capital market. We expect the oil companies listed in the DJSI to be more motivated to be involved in and disclose positive information about their involvement and support of the energy transition, indicating that the communication strategy of companies seeking legitimacy (George et al., 2016;Yang et al., 2020;Yu et al., 2020). Internationalization allows companies to acquire and create knowledge and experience related to business models, technologies, competitive environment, enhanced supply chain, and their landmarks operating away from the home country exposes the firm to multiple contexts that share similarities and dissimilarities with the home country context and that the more internationalized the firm is, the greater the management commitment and adherence to environmental issues (Hartmann et al., 2020). ...
... Yun et al. (2019) argue that a failure to recognize a transitioning energy landscape may lead to investments in certain types of hydrocarbons that ultimately yield suboptimal returns and that moving too rapidly away from core businesses could weigh on returns from unfamiliar technologies with uncertain prospects for profitability. The fact is that in the last few decades, oil and gas companies have been accused of 'greenwashing' in their corporate reports and reducing their spending on high-capital renewable energy (solar and wind energy) to focus on investments with better returns, such as biofuel technologies and cleaner ways of using fossil fuels, which are far from 'green' or, even, to strive to deny science, and this is a powerful indirect contributing factor to climate change (George et al., 2016;Grasso, 2019). ...
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Based on the greenwashing approach in line with legitimacy theory, we examine first whether the strategic positioning of key oil companies is addressed by their disclosed commitments in their corporate reports and, second, whether the disclosures made by oil companies in relation to energy transition reflect their behavior. We use an ordinal logistic regression model in a sample of 38 oil companies, our findings suggest that the lower the investment in oil and gas exploration and production, and the smaller the variation in the volume of hydrocarbon reserves, the more likely a company narrates a strong commitment to the energy transition. Also, we consider that investments in fossil fuels need to be reduced significantly to accelerate the transition to cleaner and sustainable energy sources, and it is vital to observe the alignment of disclosed commitments by companies to the transition and their behavior, avoiding the accusation of greenwashing practices.
... Despite the ongoing energy transition movement, this sector continues to serve as the primary source of global energy generation, with a reliance on fossil fuels projected to persist for several decades (Mjachina et al., 2014;Olawuyi, 2021;UNDP, 2017). However, its economic significance is accompanied by significant controversy, mainly because of potential social and environmental ramifications (George et al., 2016). Consequently, it becomes imperative for O&G companies to enhance their sustainability efforts and align with the SDGs (Inkpen and Ramaswamy, 2018;Kolk and van den Buuse, 2012). ...
... Because of the increasing importance of the sustainable development idea, studies related to the term sustainability have grown impressively in recent years (Ali et al., 2023). In this sense, over the past few decades, business organizations have exhibited a growing commitment to CSR, seeking to assume the negative consequences generated by their operations on both society and stakeholders and looking for ways to move forward in achieving sustainable initiatives (Borges et al., 2022;George et al., 2016;Di Vaio et al., 2022b). ...
... Such coordination has the potential to streamline processes, reducing inefficiencies and bureaucratic hurdles, ultimately facilitating the alignment of company projects with the SDGs. As highlighted by George et al. (2016), beyond institutional structures, policymakers also require adequate knowledge to enhance their legislative capacity, which is vital for effective governance. ...
Article
Purpose This paper aims to understand the difficulties faced by Latin American oil and gas (O&G) companies in adopting integrated practices aligned with the UN Sustainable Development Goals (SDG) Agenda. Design/methodology/approach A Delphi study was conducted with 14 experts with extensive knowledge and experience in the O&G sector to collect opinions and investigate sustainable practices in the Latin American context. Findings A consensus was reached after two rounds, demonstrating a unified view of sustainability experts on the difficulties faced by O&G companies to adopt practices aligned with the SDGs. The difficulties identified through the Delphi method were allocated into five clusters named: “public sector and governments,” “civil society,” “corporate issues,” “technology and innovation” and “financial aspects.” These clusters were used to discuss the main challenges associated with implementing business practices that recognize the SDGs and their achievement as a synergistic reinforcing system rather than an additive structure. Originality/value This study provides further insights into the underexplored subject relating to the challenges experienced by Latin American O&G companies in the implementation of the SDGs, adopting the perspective of academic and industry experts in this field. The findings can help professionals in O&G companies implement sustainable practices, policymakers in debates about futures laws and regulations and academic in future research.
... Gond et al. (2012) emphasised that different organisational, leadership and environmental factors could influence the path towards sustainability integration and should be a future research focus. Addressing this, subsequent studies such as De Villiers et al. (2016), George et al. (2016), Bui and De Villiers (2017a), Dimes and de Villiers (2021) and Lakshan et al. (2022) have attempted to identify the enabling and constraining factors for integration of sustainability to some accounting practices. However, previous studies have mostly ignored the significance and role of managers' conception of the determinants and facilitators of sustainability integration. ...
... The qualitative research design was chosen to examine the manager's conception reflecting influential forces for the sustainable integration of MCS based on a theoretical framework extending the models by Gond et al. (2012) and George et al. (2016). To achieve the research objectives, we conducted a multiple case analysis using data from 36 in-depth semi-structured interviews, selecting five companies representing industries in Sri Lankan Manufacturing Sector. ...
... 2.1 Sustainability integration in management control systems Sustainability has been treated as a topic of management control research since a decade or two ago, and scholars' interests have rapidly grown during the past five years (Felden and Castellano, 2021). Traditionally, the MCS is mostly designed to control key business concerns, and due to the increasing emphasis on corporate sustainability, there is a need to develop control tools and techniques that would cover multidimensional performance aspects (Epstein and Wisner, 2005;George et al., 2016;Gond et al., 2012;Guenther et al., 2016;Henri and Journeault, 2010;Pondeville et al., 2013;Schaltegger, 2011). As a result, management accounting literature that developed new forms of accounting and controls to address these concerns (i.e. ...
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Purpose This study aims to explore the managerial conception of the determinants and barriers of sustainability integration into management control systems (MCS) of manufacturing companies in Sri Lanka. Although existing literature has explored the factors that influence the adoption of specific management controls to handle environmental and social issues, the role of management conception has been underrepresented. Specifically, literature is scarce in identifying contextual and organisational factors that influence corporates beyond mere adoption of controls but to integrate with regular controls, especially in developing countries such as Sri Lanka. Design/methodology/approach A multiple case study approach has been used to identify the management conception of barriers and enablers for sustainability control integration. The analysis is conducted based on a theoretical framework extending the work of Gond et al. (2012) and George et al. (2016). To obtain an in-depth and multifaceted view, semi-structured interviews were conducted with managers in charge of different functional departments of five manufacturing companies. Findings The findings identified managers’ perceived factors, such as environmental impact, stakeholder pressure (customer, competitor and regulatory authorities) and top management commitment, showing a clear difference between strongly and weakly integrated companies. Contrary to the literature, domestic regulatory pressure and multinational ownership do not sufficiently drive MCS sustainability integration. Practical implications The findings have implications for managers and practitioners to anticipate the potential barriers and determinants of sustainability integration and provide guidance to take proper measures to deal with them when designing and implementing their MCS. Originality/value The study adds value to the literature by presenting a theoretical framework based on the triangulation of different theories to recognise the significance of management idea in sustainable integration. Furthermore, because sustainable integration of MCS is a novel idea, this research is one of the earlier attempts to highlight problems from the perspective of developing countries.
... Despite being a driving force behind global economic growth, the O&G industry is known for endangering the environment, destroying habitats, and having a negative impact on the livelihood of communities near operation sites of these companies. A growing interest in sustainability issues of these companies has been sparked by their disruption of environment and the realisation that petroleum is a nonrenewable energy source (George et al., 2016). For instance, a study conducted by Verdantix (2014) discovered that O&G companies are investing more money in sustainability-related activities like environmental restoration and industrial energy management. ...
... However, such expenditures, according to Lozanova (2014), do not represent a concerted effort to embrace sustainability because the practices do not address broader ecological concerns, indicating a clear lack of accountability in pursuit of such reforms. Further, in recent years, O&G companies have been criticised for allegedly engaging in 'green washing' in their corporate reports and marketing efforts (George et al., 2016), and their sustainability practices and policies have been questioned. For instance, these companies promote the advantages of new energy sources while concealing the hidden trade-off by drilling for oil in unexplored areas and destroying natural habitats and biodiversity (de Freitas Netto et al., 2020). ...
... Most academic and policy researches have focused on the role of global governance in achieving the SDGs (McKeon, 2017) and the contributions of governments to national SDG projects (see Abhayawansa et al., 2021;Nygård, 2017). Meanwhile little attention has been paid to business involvement in advancing the targets enshrined in the SDGs (see Abdalla & Siti Nabiha, 2015;Adams et al., 2018;Cole & Broadhurst, 2021;Erin et al., 2022;George et al., 2016). For a corporation to execute the SDGs in any jurisdiction, accountability processes are crucial (Adams et al., 2018;Heras-Saizarbitoria et al., 2022). ...
Article
This paper aims at exploring the institutional pressures and accountability processes in pursuit of sustainable development goals (SDGs) in indigenous oil companies in Ghana. Applying a qualitative research strategy, semi‐structured interviews with 20 company managers and other industry stakeholders were used to collect in‐depth and rich empirical data. In pursuit of the SDG agenda, the indigenous oil companies appear to be sensitive to both internal and external stakeholder pressure. However, the coercive pressures from regulators did not always result in the companies implementing actual change. Instead, coercive pressures from non‐governmental actors have taken on the role of ‘regulator’ of organisational practices. Also, internal forces of change were mainly the foreign partner's audit pressure and management commitment to enhance company reputation. Beyond the institutional pressures to incorporate SDGs into business practices, the finding adds fresh perspectives to the three logical steps of SDG accountability processes used by the companies to track their contribution to SDG implementation and reporting, namely: data collection, SDG performance measurement, and communication of SDG outcomes. Finally, the study discovers that the companies are making little progress towards the achievement of the SDGs because of financial limitations, rigid organisational environments that prevent change, and a lack of a standardised institutional framework. The findings suggest that in order for an organisation to gain legitimacy, its SDG agenda must incorporate the concerns of non‐governmental actors and local communities into its corporate decision‐making. Failure to meet the needs of these essential stakeholders may jeopardise the legitimacy of organisation which will threaten its survival.
... The selection of the oil and gas industry as the focus of this study is based on its significance as a critical case, considering the sector's worldwide importance and the increased attention it has received since the Deepwater Horizon spill in 2010. 2,3,72,105 There is a significant ethical dilemma for companies in this sector due to the discrepancy between their reported sustainability focus and their actual actions and instances of greenwashing. 47,48,56,107 The annual reports of these companies from 2011 to 2020 were reviewed, obtained from the London Stock Exchange and the Financial Analysis Made Easy (FAME) database. ...
... This highlights the potential differences in corporate governance structures and regulatory environments. 105 Also, European (M = 2.316) and Asian (M = 2.316) firms place greater importance on SCM practices than American (M = 2.136) companies. This could indicate variations in operational strategies and industry norms. ...
Article
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This study aims to explore the influence of institutional pressures on the global oil and gas industry's prioritisation of sustainability and supply chain management (SCM) practices. This study conducted a thorough analysis of 15 prominent oil and gas companies across Europe, Asia and America over a span of 10 years. The study employed a mixed-method approach, combining qualitative content analysis of annual reports with quantitative analysis of variance to assess the companies’ commitment to sustainability practices in response to different institutional pressures. The findings uncovered notable variations in the prioritisation of economic, social, environmental and stakeholder sustainability across different continents. The study also highlighted various institutional pressures that impact these companies, including regulatory demands, Paris Agreement objectives and non-governmental organisation expectations. Notably, these companies displayed different levels of responsiveness to these pressures, which impacted their SCM and sustainability strategies. This research also highlights the intricate relationship between institutional pressures and sustainability within the oil and gas industry. This implies that companies should develop strong sustainability strategies that align with external pressures to improve their competitive advantage. For policymakers, the study suggests the development of more robust regulatory frameworks that consider the varying sustainability practices across different regions. Furthermore, it promotes the need for additional research to investigate the effectiveness of these strategies in real-world applications, establishing a foundation for well-informed policy choices that support a sustainable future in the oil and gas industry.
... Several indexes have been used to assess sustainability, including the benefit-of-thedoubt index [87] for overall sustainability, or specific indicators for each of the three dimensions of sustainability (environmental, social and economic) [88][89][90]. Their integration in performance management systems could lead to more effective management and control of sustainability performance in utility companies [91]. Additionally, ESG performance, as disclosure, is strongly influenced by corporate governance mechanisms. ...
... At the same time, this literature review reveals that utility companies do not only disclose their commitment to sustainability, but their practices go beyond the talk level, confirming previous studies' results [3]. Several studies investigated the sustainability practices and the impact these have on ESG performance [86,87,90,91]. Some studies evidenced that circular economy [68,69,74] and technological innovations [70][71][72] are essential to supporting utility companies' change from traditional business models to sustainable business models [2]. ...
Article
Full-text available
Utilities have a key role in the transition to a more economically and socially sustainable future. Driven by pressures from investors, regulators, government and society, companies across all sectors are setting bold ambitions for sustainability. However, they strongly depend on the utility industry meeting their own sustainability goals. Despite the relevance of their role, the determinants and obstacles to the adoption of sustainability practices by utility companies have been little investigated by scholars. This article aims to bridge this gap through a systematic literature review of 72 articles published from 1990 to 2023 in the accounting and management fields. After the analysis of bibliometric data and keywords used for science mapping, this study developed an in-depth review of the literature. Five different clusters, corresponding to the main research topics on which management and accounting literature has focused over the last 30 years, were identified. The results highlight that the expanding regulation and institutional pressures coming from governments, financial investors, consumers and society represent the primary factors that are driving utility companies toward sustainability. However, there are still several obstacles preventing utility companies from radically changing their business models, including the high costs associated with the technological and process innovations required. This study offers theoretical and practical contributions and policy implications. It contributes to systematizing literature on this topic, evidencing existing gaps and future research guidelines. It also outlines some managerial propositions that may be useful for practitioners, governments and policymakers.
... Sustainability (and management) control systems are seen as a crucial layer that enables strategy to be achieved (Harris, Herzig, De Loo, & Manochin, 2019). The sophistication of sustainability control systems is increasing because of internal and external factors that are driving the integration of sustainability initiatives in extractive companies (George et al., 2016). However, most firms still use control systems to manage narrow aspects of sustainability (Lueg & Radlach, 2016), and the level of integration of MCS (and sustainability controls) into organisational strategy is limited and fragile (Battaglia et al., 2016). ...
... While the sophistication of MCS (and SCS) has grown (Chenhall & Moers, 2015;George et al., 2016), there is only a limited connection between these control systems and external reporting (see, for example, Durden, 2008;Cho et al., 2015;Kuruppu et al., 2019), and the decision-making that was taking place within the company. This could be because Extractex was primarily concerned about its external perceptions, and this self-consciousness seemed to stem from the heightened scrutiny that external stakeholders place on the organisation (Interviews with Operational employee 1, 2; Sustainability Manager 1, Communications Director). ...
Article
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This study responds to calls for more research to understand how sustainability control systems feature (or do not feature) in short-term operational and long-term strategic decision-making. An in-depth case study of a large multinational organisation undertaking several rounds of sustainability reporting is presented. Data collection was extensive including 26 semi-structured interviews with a range of employees from senior management through to facility employees, access to confidential reports and internal documents, attendance of company meetings, including an external stakeholder engagement meeting and the attendance of the company’s Annual Environmental Meeting. A descriptive, analytical and explanatory analysis is performed on the case context (Pfister, Peda, & Otley, 2022). Simon’s (1995) Levers of Control framework structures our discussion. The case company has sophisticated and formalised diagnostic controls and strong belief and boundary systems. Conventional management controls and sustainability control systems are used in short-term operational decision-making, although differences between financial imperatives and other aspects such as environmental concerns are difficult to reconcile. Sustainability control systems also provided information to justify company actions in short-term decisions that impacted stakeholders. However, sustainability control systems played a very limited role in the long-term strategic decision. Tensions between social, environmental and economic factors are more reconcilable in the long-term strategic decision, where holistic risks and opportunities need to be fully identified. External reporting is seen in a ‘constraining’ light (Tessier & Otley, 2012), and intentionally de-coupled from sustainability control systems. This paper responds to recent calls for rich, holistic and contextually grounded perspectives of sustainability processes at an extractives company. The study provides novel insight into how sustainability control systems are used (or not used) in short-term or long-term decision-making and external reporting. The paper illustrates how a large company is responding to sustainability pressures within the unique contextual setting of New Zealand. The study outlines the imitations of existing practice and provides implications for how sustainability-based internal controls can be better embedded into organisations.
... La scelta del case study riflette, tra gli altri, l'esigenza espressa da numerosi studiosi di social and environmental accounting di entrare più in contatto con le pratiche reali, con le motivazioni degli attori e di andare oltre i contenuti ufficiali presenti nei documenti e nei report (Adams e Larrinaga-Gonzalez, 2007;Owen, 2008;Fiorentino et al. 2016). La scelta del case study, è stata adottata anche in alcuni studi precedenti che hanno utilizzato il framework di Gond (Battaglia et al., 2016;Beush et al., 2021;Caputo et al., 2017;George et al., 2016). ...
... Quello della Greenpellet rappresenta un caso virtuoso in cui pressioni normative, fattori abilitanti cognitivi, uso interattivo dei SCS e strategie di sostenibilità si rafforzano a vicenda contribuendo ad armonizzare i differenti obiettivi e a generare risultati e impatti sulla comunità anche in presenza di avverse condi-zioni ambientali. Tale risultato non è stato, ad esempio, rilevato da altri studi che pure hanno applicato il framework di Gond Nei lavori di Battaglia et al. (2016) e di George et al. (2016) il peggioramento delle condizioni economiche ha portato alla marginalizzazione degli obiettivi ambientali. La tesi della prevalenza nelle PMI dei sistemi di controllo informali su quelli formali appare, infine, sostanzialmente confermata. ...
Article
We adopt the framework of Gond et al. (2012) to explore the role of control systems in promoting the integration of sustainability within the strategies of a SME. The study responds to requests for more investigation on the transition processes towards sustainability by SMEs. While the literature on the social responsibility of SMEs is well developed, only scant studies relate to the links between control systems and sustainability. Thus, the study is based on a longitudinal case study of an Italian SME operating in a sector particularly sensitive to environmental issues, such as that of pellets. The results show that the integration between control systems has had positive effects. Specifically, cognitive enabling factors, the interactive use of Sustainable Control Systems and sustainability strategies, mutually reinforcing each other, have contributed to making the integrated sustainability strategy stable even in the presence of adverse external conditions. From a more theoretical point of view, the paper responds to requests to carry out more studies not only on the drivers and motivation to adopt sustainable strategies but also on the role played by the internal management accounting and control processes in implementing them.
... Doing so contributes to advancing sustainable development principles that place a premium on environmental preservation and enhancing public well-being. Integrating an environmentally conscious approach into this research's air quality monitoring framework resonates with global endeavours aimed at sustainable development [17]. By furnishing decisionmakers with accurate and timely information, the research actively supports formulating policies prioritizing environmental preservation, fostering a delicate balance between developmental goals and ecological sustainability. ...
Article
This study aims to significantly improve air quality monitoring through the innovative application of Artificial Intelligence (AI). Introducing the Artificial Intelligence Kualitas Udara (AIKU) model, this research offers a novel approach by integrating advanced machine learning algorithms with environmental sensors to predict air quality in real-time more accurately than traditional methods. The novelty of the AIKU model lies in its sophisticated data analytics framework, which processes high-frequency environmental data to assess air quality changes dynamically. The technique employs calibrating and deploying the AIKU model across various urban and suburban settings and analyzing its performance against conventional monitoring systems such as the Internet of Things (IoT) and Wireless Sensor Networks (WSNs). The results demonstrate that AIKU significantly outperforms these traditional systems in both accuracy and speed of response, highlighting its effectiveness in real-time environmental monitoring. Furthermore, the AIKU model's scalability and adaptability are tested, showing promising potential for application in densely populated urban areas and less populated rural settings. This research contributes to environmental monitoring by demonstrating how AI can transform traditional methodologies into more effective, scalable, and intelligent ecological management systems. This research provides substantial evidence that the AIKU model can serve as a powerful tool for sustainable and smart development worldwide, enhancing the ability of governments and organizations to respond to environmental challenges promptly and effectively. Doi: 10.28991/HIJ-2024-05-03-017 Full Text: PDF
... Within these three perspectives, research has pointed to several barriers to mobilizing and migrating management control systems toward effective sustainability reporting and management. These might pertain to matters of technical (Battaglia et al., 2016), organizational (Gond et al., 2012), or cognitive integration (George et al., 2016;Perego et al., 2016) or a lack of knowledge of best practices (Adams and McNicholas, 2007). These can also be related to the ways of integrating sustainability goals into organization-wide planning processes (Adams and McNicholas, 2007) and difficulties in choosing between different indicators and reporting guidelines (Domingues et al., 2017). ...
... Therefore, the higher economic growth rate means the region's development is improving. Furthermore, in order to support the sustainability of economic enterprises, it is essential to make decisions related to the management of these enterprises with a focus on increasing productivity and adopting technology-based financial reporting (George et al., 2016;Erokhin et al., 2019;Antoaneta et al., 2023). The economic activity sectors and their contributions to the Gross Regional Domestic Product (GRDP) of Wajo Regency are presented in Table 2. Table 2 illustrates the economic growth of Wajo Regency. ...
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Natural resource-based economic growth impacts increasing the productivity of small and medium enterprises (SMEs) in Wajo Regency. This study aims to analyze: (1) Economic growth and financial management performance work as determinants of increasing the productivity of small and medium enterprises (SMEs), (2) The direct and indirect effects of financial management, technology utilization, business diversification, and product innovation, on business productivity economics and business sustainability of SMEs, dan (3) Financial management strategy and productivity of SMEs in supporting economic growth. This study uses a combination of qualitative-quantitative approaches sequentially—data obtained through observation, in-depth interviews, surveys, and documentation. The results of the study indicate that the optimization of financial management performance and the effectiveness and efficiency of the utilization of business capital impact increasing the productivity of SMEs. Furthermore, financial management, technology utilization, business diversification, and product innovation directly affect the productivity of SME economic enterprises with a determination coefficient of 60.58%. The increase in SMEs' business productivity directly and indirectly affects their business sustainability, with a determination coefficient of 67.73%. This study recommends financial management based on the effectiveness and efficiency of the utilization of business capital coupled with the use of technology, business diversification, and product innovation, which are essential parts that need to be considered in the formulation of economic development policies in the framework of encouraging increased productivity and business sustainability of SMEs in Wajo Regency, South Sulawesi, Indonesia.
... Additionally, these activities can trigger social issues and unrest within communities (Orazalin and Mahmood, 2018). Therefore, the management of oil and gas fields, which have a limited lifespan, must be carried out as effectively as possible to maximize positive impacts and minimize negative impacts for sustainable development (George et al., 2016). ...
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This study illustrates the importance of sustainable energy management in the context of oil field management in Indonesia. Using the Rappetro approach, this research evaluates the sustainability of oil field management across various dimensions, including ecological, economic, socio-cultural, technological, and legal-institutional aspects. Findings indicate that the sustainability index for all dimensions—ecology (64.07%), economy (57.72%), socio-cultural (52.91%), technology (64.44%), and legal-institutional (61.7%)—is robust. This signifies that oil exploration and exploitation operations in the area have effectively integrated conservation principles. Energy management and balanced integration of ecological, economic, and technological aspects in oil field management play a key role in ensuring long-term sustainability. Theoretically, this research provides valuable insights for the energy sector by highlighting the sustainability of oil field management. Its implications are relevant in shaping sustainable energy practices, emphasizing the need for a comprehensive approach in every stage of oil resource exploration and exploitation. Thus, this study makes a significant contribution to guiding policies and practices that support sustainable energy development in the future.
... In recent years, researchers have conducted studies on sustainability performance management within various specific domains, including the circular economy [22], supply chain management [23], and specific industries such as tourism [24] and oil and gas [25]. In particular, researchers have recently involved a value-based system such as sustainability organizational culture [e.g., 26,27] and stakeholder-based brand equity [e.g., 28] as an element of a new paradigm of managing for sustainability, regarded as an effective way to deal with the wicked sustainability problems, because the identification of the wicked sustainability problems is frequently accompanied by conflicting norms, value frames, and beliefs [14,29]. ...
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Although the United Nations (UN) has continued to introduce the Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs) to address global sustainability, the world is becoming less sustainable. This is not surprising since our knowledge about effective sustainability performance management is scanty. The present study attempts to develop a sustainability performance management framework to deal effectively with the prevailing sustainability problems. It starts by introducing the “wicked” nature of sustainability problems, followed by a research methodology to build the sustainability performance management framework. The review suggests that the framework’s components are related to the organizational culture of sustainability, the sustainability strategy employed by the firm, the corporate sustainability practices implemented, and the resulting outputs and outcomes in terms of sustainability performance. The connections between these elements are fundamentally critical, along with a feedback loop to address the dynamic, wicked sustainability problems. Finally, a Sustainability Performance Management framework and its associated propositions are derived, followed by future research directions and practical implications.
...  The implementation of energy-efficient lighting controls involves the use of daylight harvesting devices and occupancy sensors to regulate lighting settings in accordance with the presence of natural light and occupancy inside a given space. [14] 2. Integration of Renewable Energy Sources [15]: The process of renewable energy integration entails the integration of renewable energy sources into the energy supply composition in order to fulfil the power and heating requirements of a specific facility or a more extensive energy system. Renewable energy sources include a range of natural processes that possess the inherent capacity to replace themselves over a period of time. ...
Chapter
This book series invites all the Specialists, Professors, Doctors, Scientists, Academicians, Healthcare professionals, Nurses, Students, Researchers, Business Delegates, and Industrialists across the globe to publish their insights and convey recent developments in the field of Nursing, Pharmaceutical Research and Innovations in Pharma Industry. Book series on Pharmacy and Nursing covers research work in a set of clinical sciences and medicine.
... Furthermore, the results indicated that supplier management and logistics play pivotal roles in achieving sustainability within O&G supply chains. George et al. (2016) explored the facilitators and barriers associated with integrating sustainability into the performance management systems of the O&G sector. Their findings indicated that such integration enhances overall organizational performance and management. ...
... En las estrategias corporativas, la cultura y los procesos comerciales de la empresa, debe estar inmersa la sustentabilidad, sin embargo, mientras las empresas dirigen sus esfuerzos hacia el logro de la sustentabilidad, comúnmente se enfrentan a problemas relacionados con la falta de integración de los datos, derivado de actividades sin coordinación (George et al., 2016), ocasionando además un informe de rendimiento de sustentabilidad ineficaz y una toma de decisiones inadecuada (Chofreh et al., 2019). ...
... En las estrategias corporativas, la cultura y los procesos comerciales de la empresa, debe estar inmersa la sustentabilidad, sin embargo, mientras las empresas dirigen sus esfuerzos hacia el logro de la sustentabilidad, comúnmente se enfrentan a problemas relacionados con la falta de integración de los datos, derivado de actividades sin coordinación (George et al., 2016), ocasionando además un informe de rendimiento de sustentabilidad ineficaz y una toma de decisiones inadecuada (Chofreh et al., 2019). ...
... En las estrategias corporativas, la cultura y los procesos comerciales de la empresa, debe estar inmersa la sustentabilidad, sin embargo, mientras las empresas dirigen sus esfuerzos hacia el logro de la sustentabilidad, comúnmente se enfrentan a problemas relacionados con la falta de integración de los datos, derivado de actividades sin coordinación (George et al., 2016), ocasionando además un informe de rendimiento de sustentabilidad ineficaz y una toma de decisiones inadecuada (Chofreh et al., 2019). ...
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Esta investigación tiene como objetivo realizar una revisión sistemática de las finanzas sustentables para otorgar una aproximación epistemológica en el contexto latinoamericano. A través de un estudio bibliométrico se identifican los temas encadenados al análisis de las finanzas con enfoque sustentable. Se analizan los registros de Web of Science de Clarivate Analytics considerando artículos publicados en diez países de América Latina en los últimos 16 años. Como resultado, los temas ligados al estudio de las finanzas sustentables son: la gestión de riesgo, asignación de activos ambientales, sociales y de gobernanza (ESG), mercado de bonos, bonos verdes, emprendimiento social y estabilidad financiera; de esta manera se conciben como líneas de investigación que otorgan reconocimiento a la interdisciplinariedad de las finanzas y su relación con la sustentabilidad.
... 3. The arithmetic means of the respondents' responses to the dimensions of technology ranged between (2.340-2.943) with a medium and low evaluation score, as paragraph (13) states that "the company resorts to technological changes out of its belief in its need for all that is new in the field of services." To which it belongs, "with an arithmetic mean (3.340) and a standard deviation (1.060)" it came in the first place with a medium degree, while paragraph (14) which states "individuals in the company can be prepared to receive advanced technology" with its arithmetic mean (2.136) and a standard deviation (1.156). ...
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Business organizations are actively seeking to improve and develop their performance to ensure their growth and continuity in the market and seek change for the better, especially in light of the risk and uncertainty that negatively affects the performance of those organizations if they are not met with work mechanisms that enable them to keep pace with the changes resulting from these cases. The study aimed to find out the impact of organizational change on strategic performance. Data was obtained through a questionnaire designed to measure the answers of the study sample. The questionnaire was distributed to the employees of the company. The study population consisted of workers in Asia Cell Telecom Company in Iraq, SPSS, v.24 and SMART programs were used to find out the results of the questionnaire in order to reach the nature of the relationship between the variables of the study. The study gains its importance from the fact that it is looking at an interesting topic in order to develop performance in a way that makes the researched organization in a competitive position in its field of work. The study showed the existence of a statistically significant relationship between the two variables, where it was found that the level of organizational change practice was medium, in addition to that the arrangement of the dimensions of the field of organizational change according to the arithmetic mean came as follows: organization culture, organizational structure, technology and finally human resources, where two dimensions obtained a degree Medium evaluation, namely: organization culture, and organizational structure. The study recommended the need to address the shortcomings that occur as a result of the company's management's weakness in attracting individuals with high skills and experience and encourage the company's management to strengthen the system of rewards and incentives through the selection of qualified individuals.
... There are now a number of management systems (MSs) with different focuses, standardized according to international standards, e.g. Quality [37][38][39]. ...
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The implementation of management systems has become a strategic advantage in achieving business goals, especially in industrial organizations, but the implementation of social responsibility requirements is especially ethical. Large multinational companies have long been developing and, in particular, implementing their own codes of conduct, which include their suppliers, to demonstrate their commitment to Corporate Social Responsibility (CSR). The compliance with CSR requirements from stakeholders is thus extended or intertwined with requirements in established management systems (MSs). The objectives of the study were to (1) analyze the different approaches to CSR in internationally recognized cross-industry and industry-specific standards and codes in different industries; (2) select the most appropriate framework for assessing the degree of applicability of CSR in the selected management systems and develop a methodology for its assessment; (3) apply the proposed methodology (referred to as SRIMS) in the selected areas: automotive industry, research organization, and metallurgical industry; (4) through ANOVA, validate its use for assessing the overall level of CSR applicability in an organization's established management systems. The application of the Bonferroni method confirmed the hypotheses that the developed SRIMS model is a sufficiently appropriate tool for assessing the overall level of applicability of CSR requirements to established MSs.
... This implies that the procurement and logistics performance of the SC management improves with IT exploitation and integration. To further justify this result, George et al. (2016) detailed that implementing advanced IT systems leads to significant improvements in operational performance (e.g., lead times and on-time deliveries) of the SC of petroleum industries. ...
Article
This research examines the potential impact of information technology (IT) on supply chain management (SCM) in the Nigerian petroleum industry. Specifically, the study seeks to identify the IT systems utilized by the key actors in the industry, the challenges facing SCM operations, and the potential benefits of IT for addressing these challenges. The field survey used 266 individuals, comprising regulators, production units, transporters, vendors, and customers. The study employed inferential statistics, and hypotheses were tested using the chi-square statistical test. The findings reveal that enterprise social networks, real-time track and tracking systems, warehouse management systems, and electronic invoice and fund transferring systems are the IT systems most commonly utilized by the key actors in the Nigerian petroleum industry. However, monitoring and evaluation remain the most challenging area for IT development in SCM operations. The study recommends that the government implement policies that encourage the adoption of IT in SCM operations, as well as incentives to encourage industry players to digitize data. The original contribution of this research is that it identifies the key IT systems utilized by the actors in the Nigerian petroleum industry and the challenges facing SCM operations, as well as proposing policy recommendations.
... New product development (NPD) has become a key issue in corporate success in the biochemistry industry, with increasingly significant contributions to sales and profits [23][24][25][26]. Despite the importance of NPD, the failure rate of newly developed products is surprisingly high [27,28], with reports of failure rates over 75% [29]. ...
Article
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With the dramatically increased demand for data analysis, statistical techniques play a key role in modern society for both academics and practitioners. Statistical techniques have been evolving from descriptive statistics to statistical inference in fields that require the evaluation of uncertainty and the quantification of risks. With the growing complexity of various fields, such as manufacturing and industrial applications, as well as business decision-making, modeling and quantifying risks has become essential. In this paper, we aimed to use statistical risk analysis and Value at Risk (VaR) to address the decision problem for project portfolios. Traditional economic evaluation criteria used in the management of project portfolios, as they pertain to new product development (NPD), are based on the assumption that pinpoint estimations will remain constant in the future. The assumption that NPD is static, however, is clearly unrealistic due to the inherent uncertainty of NPD projects. In this study, we stress the critical role that uncertainty plays in the selection of NPD portfolios, and clarify the reasons why it must not be overlooked. Using Value at Risk measurements, we show how uncertainty plays a critical role in evaluating and prioritizing NPD portfolios. The implications of this study regarding statistically modeling NPD portfolio decisions are provided for academics and practitioners.
... Corporate Management control hoped to employ a key responsibility to constructing and implementing the methods of sustainability strategy that are frequently assigned with a high capacity of supporting the corporate decision-making process (Crutzen & Herzig, 2013). In a firm, the integration phase of control systems portrays the responsibility of corporate control systems to support sustainability integration ideas in company strategic plan (George et al. 2016). SMC attempts to work in an iterative process to incessantly measure, manage and improve the interaction among business firms, society as well as environmental aspects (Bennett and James, 1998). ...
... In the context of partial upgrading, even if a commercial facility generates benefits to the public through increased economic activity, the environmental footprint of the facility and issues around land use and common-pool resources can create substantial social risks to the viability of the project. George et al. [50] note that both internal and external factors influence oil and gas firms' actions to integrate sustainability into their management practices. These external factors include social norms, industry norms and standards, and sustainability regulations. ...
Article
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Partial upgrading of bitumen (PUB) improves the quality (increases the value) of crude oil from bituminous sands to the level where pipeline specifications are met without—or with reduced use of—costly diluent. By reducing the cost of transportation to downstream refineries, PUB can serve as a solution to market access challenges and takeaway capacity constraints for oil sand producers. However, despite significant government and private investments, proponents in the Canadian province of Alberta still face challenges in commercializing the technology. We used a capacity investment model to explore the expected effects of different policy support types on a firm’s decision to invest in a partial upgrading facility integrated with an existing oil sands extraction facility. We evaluated 10 potential policy interventions and their expected effects on investments in partial upgrading. We focused our analysis of these policy interventions on the revenues and costs of firms, risk sharing, and overall public benefits and costs. We find that the majority of interventions are transferred from government to private interests, with little public benefits. Defensible policy actions include capital investment at the demonstration phase, providing incentives for industry collaboration, equity investment at the commercial stage, and reforming the government’s bitumen valuation methodology.
... Thus, sustainability reporting can minimize the gap between companies and the community by providing sufficient information. Although the petroleum sector is one of the most important sectors in the current era, its operations have serious consequences for society and the environment (Alazzani and Wan-OPEN ACCESS EDITED BY Hussin 2013; George et al., 2016). Despite yielding much-needed resources, exploiting oil and gas is a double-edged sword. ...
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The purpose of this article is to assess the quality of the sustainability reporting indicators used by oil and gas companies (OGCs) in Gulf Cooperation Council (GCC) countries. This study utilizes the International Petroleum Industry Environmental Conservation Association (IPIECA) guidance as a new robust methodology to assess the quality of sustainability reporting, which is considered a comprehensive benchmark that directly relates to the oil and gas sector. This study conducts a content analysis of the sustainability reports published by OGCs in GCC countries for the 2016–2018 period. The results reveal that the quality of the sustainability indicators disclosed by companies is largely unsuitable. The results also show that companies fail to report detailed information on environmental indicators as the most important category for OGCs. The findings demonstrate that most OGCs in Qatar pay more attention to sustainable reporting indicators than the OGCs in other GCC countries. This study successfully addresses many previously outstanding issues regarding the quality of the sustainability reporting indicators used by OGCs in GCC countries. Hence, the findings paint a clear picture of the situation so that regulators, policymakers, and managers can correct the existing shortcomings in the quality of sustainability reporting and promote sustainability reporting guidance best practices.
... Managerial accounting can be the answer through which the accounting and reporting of the sustainability of organizations can be organized effectively, using new digital technologies that have generated a digital transformation of business models. Furthermore, integrating managerial accounting tools in organizational performance management systems leads to better management and control of the organization's sustainable performance [9]. ...
Article
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Sustainability and digital transformation are two phenomena influencing the activities of all organizations. Managerial accounting is an essential component of these transformations, having complex roles in decision-making to ensure sustainable development through implementing modern technologies in the accounting process. This paper studies the roles of digitized managerial accounting in organizational sustainability drivers from a decision-making perspective. The empirical investigation assesses the influence of managerial accounting on the economic, social, and environmental drivers of sustainability from the perception of 396 Romanian accountants using an artificial neural network analysis and structural equation modeling. As a result, the research provides a holistic view of the managerial accounting roles enhanced by digital technologies in the sustainable development of healthcare organizations. From the accountants’ perception, the leading managerial accounting roles on organizational sustainability are enablers and reporters of the sustainable value created in the organization. Additionally, the roles of creators and preservers are seen as relevant by a significant part of the respondents. Therefore, healthcare organizations must implement a sustainability vision in managerial accounting and accounting information systems using the capabilities offered by new digital technologies.
... According to McKinsey's 1.5-degree pathway scenario, $750 billion must be invested in CCUS, $200 billion in EV infrastructure, and $700 billion in hydrogen-production capacity over the next decade. The O&G industry's emphasis on financial performance, costs, and market expansion suggests that although sustainability issues may appear to be gaining importance (George et al., 2016), business and sustainability initiatives are driven by financial performance. Over the past decade, global O&G companies have placed a greater emphasis on energy demand and market expansion, including renewable energy and natural gas offerings. ...
... Accordingly, there is a growing need to understand the design and use of MCSs and/or SCSs to foster the implementation of sustainability and CSR strategies (Ghosh et al., 2019;Laguir et al., 2019;Wijethilake and Upadhaya, 2020). Research on the design of control systems for sustainability and CSR has been demanded to reveal the degree of integration of sustainability and business strategy (Battaglia et al., 2016;George et al., 2016;Gond et al., 2012). The management control package (Malmi and Brown, 2008;Simons, 1995) perspective is adopted to systematically explore what different MCSs and/or SCSs configurations are observable in practice and informed by different strategic orientations (Crutzen et al., 2017;Gond et al., 2012). ...
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This research was set up to investigate the impact of Environmental Management Accounting Practices on Financial Performance (ROI) for mining firms operating in Bindura. The study objectives were to identify environmental management accounting practices employed by mining firms, establish the roles of environmental management accounting practices and to assess the relationship of environmental management accounting practices on environmental performance (EP) and on return on investment (ROI). Mixed method research strategy which blends characteristics of both quantitative and qualitative research design were used. Data was collected from a sample of 41 participants using questionnaires and interviews as data collection instruments. Descriptive statistics and inferential statistics analysis tools were employed. Data analysis and presentation employed the convenience of SPSS and MS Excel packages. The research concluded that mining companies mainly use environmental budgeting, environmental capital appraisal and environmental performance tools in their mining processes and activities. It also concluded that EMAPs improves environmental performance (EP) and ultimately financial performance. To the primary beneficiaries the research study suggested that mining firms should embrace EMAPs as part of strategic management process so that they maximise from benefits associated with adoption of EMAPs. The research also recommended that the Central government should consider designing fiscal incentive policies to encourage more investment in environmentalism. Lastly, media has been recommended to stimulate public interest in environmentalism for it is anticipated that public interest pressure groups activism will accelerate the speed on adoption of environmental management accounting practice
Chapter
This chapter reviews academic papers published in both accounting and non-accounting journals on performance management and performance measurement system (PMS) practices in developing countries. As stated in Chap. 2, the study by Khan (Corp Ownersh Control 13(2):497–517, 2016) carried out a review of the literature from 1987 to 2012 by reviewing 102 papers published in different developing countries. The aim of this chapter is to provide an updated review of the literature on the same topic from 2013 to 2023 to recognise the latest developments during the past decade. Developing countries are playing a pioneering role in sustainability regulations, while researchers worldwide in recent years are embracing sustainability disclosure, green banking and climate change-related research. This updated review provides additional avenues for academic scholars interested in conducting future research in developing countries on sustainability, climate change and other contemporary non-financial performance topics. Overall, this chapter sheds further light on these issues by presenting this review of the most recent literature and offering future research directions.
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The aim of this research is to apply the meta-synthesis technique to identify safety, health, and environmental indicators in the value-added model of the petrochemical industry supply chain. In the petrochemical industry, safety, health, and the environment hold significant importance. Safety indicators such as work accident rates, safety training, and the use of protective equipment can indicate operational sustainability in the petrochemical industry. The researcher employed a systematic review and meta-synthesis approach to analyze the results and findings of previous researchers. By following the seven-step method of Sandelowski and Barroso, influential factors were identified. Out of 556 articles, 55 were selected based on the CASP method, and the validity of the analysis was confirmed with a Kappa coefficient of 0.711. To assess reliability and quality control, the transcription method was used, which revealed an excellent agreement level for the identified indicators. The results of the collected data analysis using MAXQDA software led to the identification of 84 initial codes in 16 categories. The 16 criteria are: political factors, cultural factors, legal factors, financial factors, individual factors, managerial factors, information resources, implementation, review, feedback analysis, performance evaluation factors, risk concepts, identification of environmental issues, identification of health issues, learning about safety topics, and the value-added supply chain of the petrochemical industry with a sustainable development approach. In the value-added model of the petrochemical industry supply chain, safety, health, and environmental indicators are of great importance. Safety in these industries is essential, as non-compliance with safety standards can lead to serious incidents, including personal and environmental damage. Therefore, adherence to safety standards and training, along with the development of safety technologies, can lead to significant improvements in this industry. Additionally, the health of employees and maintaining their well-being is another priority of this supply chain. Creating a healthy work environment and providing appropriate health services to workers can play a crucial role in increasing productivity and reducing injury rates caused by working conditions.
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Purpose Performance management system (PMS) is a crucial element of strategic human resource practices in any organization. This research aims to provide a concise overview of how bibliometric analysis is employed to assess the influence and significance of cutting-edge technologies in shaping of PMS. This study seeks to identify key trends, emerging technologies and their impact on the evolution of performance management practices, contributing valuable insights for researchers, practitioners and policymakers in this field. Design/methodology/approach This investigation is carried out utilizing total of eight research questions, which are examined through VOS Viewer and Biblioshiny software. The research offers visual diagrams and tables depicting the data extracted from the Scopus Database. Findings The study’s results underscore a noticeable increase in research literature pertaining to PMS, indicating a shift from conventional methods to a strategic, technology-driven approach. These findings cover the way for further investigation across various disciplines, offering opportunities to enhance the efficacy and productivity of PMS. Practical implications The implementation of new technologies such as Artificial intelligence (AI), machine learning and robotics etc. in PMS have also been analysed to give a sneak peak of the bigger future picture of AI and strategic human resource integration. Originality/value To the best of the authors' understanding, this analysis represents the inaugural application of bibliometric techniques to evaluate the advancement of research on Performance Management System (PMS) dating back to 1978, utilizing academic literature sourced from the Scopus databas
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The increasing awareness of the role of fossil fuels in global warming, fluctuating oil and gas prices, and governments' commitments to phase out fossil fuels are driving the Norwegian oil and gas industry to increasingly aim for a transition to more sustainable renewable energy. There are few studies investigating how highly emission‐intensive oil and gas firms can transition into greener industries. In this multiple‐case study, we investigate how these firms can develop green innovations and enter renewable industries by developing dynamic capabilities. We find several microfoundations of dynamic capabilities that are important for green innovation development. Expanding the search window and proactive behavior are key for identifying new opportunities, while developing market insight, cross‐sector collaboration, and structural ambidexterity are crucial to seize and reconfigure opportunities. The findings also illuminate how firm strategy in the sensing stage impacts what opportunities firms seize. The study is one of few studies that explore the microfoundations of dynamic capabilities necessary for entering new and unfamiliar markets, and it contributes to the understanding of the dynamics of the underlying microfoundations and the impact of green innovation type on these dynamics.
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The post-COVID-19 era of hotel/resort management requires a new attitude to assessing and benchmarking business performance. To survive and compete in the “new normal” environment, hotel/resort businesses need to build on their strategic agility and sensitivity, humanistic and sustainable leadership and resource fluidity. In this view, performance measurement is aligned with the evolving strategic goals, which collectively support people and places—customers, employees, communities and the environment. This case study explores the systems and practices implemented in hotels and resorts to measure business performances during the COVID-19 pandemic in Australia. We highlight how hotel/resort managers can apply agile leadership and more humanistic approaches in promoting a new way of thinking to innovate around the balanced scorecard (BSC) framework. In this vein, the case also provides an opportunity to think strategically about the implications of static versus dynamic performance measurement systems.
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The Agenda 2030 Sustainable Development Goals (SDGs) require collaboration between governments, individuals, and the business community. However, research is still needed to understand how companies should contribute to the SDGs. Notably, researchers acknowledge companies' reporting practices play a crucial role in connecting organizational behavior to sustainability, advocating for more inclusive and transparent reporting to enhance companies' contribution to sustainable development. Despite the extensive literature on sustainability disclosure, limited empirical studies focus on socially inclusive and dialogic reporting as a determinant of SDGs’ achievement. Focusing on the second SDG (“Zero hunger”), this study analyses 211 of the most relevant worldwide large public companies in achieving it. The results reveal that companies adopting more inclusive and dialogic reporting practices also make greater contributions to SDG2, thus underlining the significance of inclusive reporting in achieving SDGs.
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The implementation of management systems has become a strategic advantage in achieving business goals, especially in industrial organizations, but the implementation of social responsibility requirements is an especially ethical issue. Due to the existence of various standards (often industry-specific) as well as individual codes of conduct developed by large multinational organizations, supplier organizations must face a variety of requirements. The question, then, is to what extent their established management systems (MSs) meet these requirements. The objectives of the study were to: (1) analyze the different CSR requirements of internationally recognized cross-industry and industry-specific standards and codes in different industries; (2) select the most appropriate framework and develop a methodology for assessing the degree of applicability of CSR in the selected management systems; (3) apply the proposed methodology (the so-called Social Requirements Applicability in Management Systems—SRIMS) in the selected areas: automotive industry, research organization, and metallurgical industry; and (4) analyze the results of SRIMS by the application of the ANOVA and Bonferroni method and define clusters within the selected factors—“Organization”, “Standard”, and “Chapter” and determine differences between pairs within each factor. The application of the Bonferroni method confirmed the hypotheses that the developed SRIMS model is an appropriate tool for assessing the overall level of applicability of CSR requirements in established MSs.
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Las empresas han iniciado en la última década la implementación de distintas prácticas hacía la mejora de su desempeño de carbono para atenuar su impacto en el cambio climático. Sin embargo, la efectividad de estas prácticas en la reducción de las emisiones de carbono continúa siendo debatible. Esta investigación explora el efecto que tiene cinco prácticas de gobernanza climática, i.e. la supervisión de la junta, la ejecución eficaz, la divulgación pública, la contabilidad de emisiones, y la planeación estratégica sobre el desempeño de carbono en las empresas de la Bolsa Mexicana de Valores del 2014-2018. Basado en la perspectiva de los grupos de interés, así como en la lógica institucional, se argumenta teóricamente que las presiones por una mejora en el desempeño climático de las empresas promueven una transición de lógica económica hacia una sustentable, la cual contribuya a la reducción de las emisiones de carbono e incrementar la legitimidad de sus operaciones. Para comprobar las hipótesis de investigación, se realiza un análisis longitudinal mediante Mínimos Cuadrados Generalizados Factibles (FGLS) con datos recabados de Bloomberg, Thomson Reuters, y los reportes de sustentabilidad. Los hallazgos sugieren que sólo la divulgación pública tiene un efecto positivo en la reducción de las emisiones de carbono, mientras que la supervisión de la junta, la ejecución eficaz, y la planeación estratégica incrementan dichos gases. Esta evidencia sugiere la necesidad de integrar de manera substantiva las prácticas de gestión climáticas por parte de los responsables de la toma de decisión, evitando así la impostura verde (greenwashing) para una efectiva implementación. De esta forma se contribuye a la identificación de aquellos mecanismos que coadyuven a la reducción de las emisiones de carbono dentro de la literatura de la gestión ambiental.
Conference Paper
Capacitance-Resistance model (CRM) has been a useful tool for fast production forecasts for decades. The unique combination of simplicity and physics-based nature in this data-driven approach allowed it to stay as an object of scientific interest and get its own place among other types of models capable of giving predictions on flow rates, such as full-scale 3D reservoir models. However, the model simplicity, assumptions, and limitations does not allow wide application of a conventional CRM in complex field cases. A vast majority of studies on CRM are about overcoming its limitations by introducing new coefficients, modifying the analytical form of the equation, etc. Integrating CRM with rapidly developing artificial intelligence (AI) methods seems to be a logical continuation of model evolution. Recently introduced Physics-Informed Neural Networks (PINN) can preserve CRM's governing equations and coefficients that gives some insights about wells and formations standing out from other popular machine learning and deep learning methods. Moreover, PINN type models give certain flexibility in the choice of architectures – it means that the model architecture can be changed in a way that may assist in solving different problems. Thus, we introduce end-to-end learning of neural networks (NN) while implying some physical constraints. It is intended to overcome one of the major limitations of CRM, which is obtaining predictions for oil and water production rates from total liquid. This way, the additional training of rough approximation fractional flow models that are either not suitable for the case or may require the knowledge of reservoir properties is not needed. In this work, the well-known concept of Capacitance-Resistance models appears in a new form, which allows performing history matching rather rapidly, achieving robustness and forecasting liquid, oil and water production rates simultaneously. To test this new approach, several datasets (both synthetic and real) were used. The results obtained by PINN are compared to those obtained by a conventional CRM. By conventional we mean the analytical solution, which was modified by our research group to take into consideration common real field cases such as shut-in wells, workover operations, etc. by introducing dynamic characteristic coefficients [1].
Conference Paper
Artificial Intelligence (AI) has significant potential to optimize practices, processes, and energy consumption along with maximizing yield, quality, and uptime. This has substantial impact on putting organizations on the path to net-zero, as such optimizations can reduce greenhouse gas emissions by 20% with minimal capital investments. This comprehensive study presents proven industrial case studies that delivered economically strong strategies coupled with sustainability practice and providing strategic insights to identify, manage and/or attenuate the associated impacts. Environomics presented in this study is a novel framework which deals with unifying economic strategies with sustainability practices (through artificial intelligence) for optimal business performance in terms of finances but also environmental impact. This is achieved through a track, trace, and optimize approach for resources (particularly emissions, energy, water, waste, materials,, and safety) This was achieved through a combination of AI methods such as unsupervised machine learning, multi-variate optimization, and the implementation of similarity measures. A few of the inputs included well data (including production data, drilling data, completion data etc.), logistics/supply chain data (scheduling data, production inventory, mobilization data etc.), safety data (near-miss, observations, hazards, disciplines and insights etc.) with associated costs and emission data. Multiple industrial case studies are presented where sustainability metrics are identified through validated AI models to optimize productivity while reducing emissions and inventory. For instance, well profiling can be used to identify historical parameters that have maximized production potential while optimizing for aspects such as cost or emissions. Furthermore, we can identify the optimal completion parameters for a new well which satisfies carbon targets, use well profiles to build an optimized drilling schedule that meets budget or production criteria while still achieving production targets and optimizing drilling rig routes. Thus, the approach can quickly (within run time) solve interrelated environomic challenges in the reservoir studies space and the field development space. Further case studies indicate that the supply chain can have immense optimization impact on scope 3 aspects with results indicating 30-50% asset utilization improvement with respect to fleets (Vessel, Truck, Rigs). With respect to materials, a 10-20% reduction of material inventory levels all improved through AI. As the workforce are also part of the environment it has been observed that identifying unsafe behaviors within a large operation, also leads to enhanced sustainability behaviors. The models indicate potential of overall emission reduction ranging from 12-20%. This led to the comprehensive framework presented in this study to support sustainable practices that are also economically feasible and deployable. The real-time sustainability metrics generated has immense values in terms of decision-making processes and scenario generation in a fraction of the time that is required using traditional approaches. In addition to assessing the scope of impact, a novel multidisciplinary study and framework is presented to analyze environomic strategies to propose a market-oriented approach through the application of artificial intelligence. Furthermore, industrial, and academic case studies have been evaluated to identify, predict, and optimize the crucial parameters within such workflows that are effective in reducing resources utilized and associated emissions.
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The relationship between sustainability (or CSR) and company value has been intensively researched in recent times. However, the specifics of individual industries have not been sufficiently taken into account. Our study aims to fill this research gap. We focus on the oil and gas industry as a particularly powerful and controversial industry. Based on legitimacy theory and institutional theory, we argue that the relationship between firm value and sustainability is negative in this industry. Our sample consists of 205 firms with 1515 observations. Using a simultaneous equation system (3SLS) to determine its direction, we find the two to be negatively interrelated in a vicious circle. Furthermore, we find evidence for a moderating role of the renewable energy share of a company's headquarter country as well as the company's industry segment. The explanatory power continues to hold with consideration of a profitability measure (Return on Sales) instead of firm value.
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Oil and gas (O&G) projects have a high social and economic impact in many countries. This study aims to identify the success factors in the O&G industry and to present a framework for evaluating the projects in an uncertain environment. In this study, 197 indicators are identified from a literature review and summarized to 34 indicators. Exploratory factor analysis (EFA) was performed, and seven main factors have been identified as success factors of O&G projects. Confirmatory factor analysis (CFA) confirmed the validity of the measurement model. A two-step fuzzy inference system is proposed to present an evaluation framework for assessing the performance of O&G projects. The hybrid framework was applied for the assessment of five Iranian O&G projects.
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Purpose Globally, the oil and gas (OG) industries are under pressure from numerous stakeholders for their sustainable operations against the backdrop of climate change, ecological damage and social challenges. Drawing on the twin theoretical frameworks of the institutional theory and dynamic capability perspective, this study aims to examine the impact of the institutional pressures and dynamic capabilities on the overall sustainability performance of OG industry. Design/methodology/approach This study uses survey method to analyze the responses from 275 middle management professionals of OG industry in India using partial least squares structural equation modeling. Further, focused group discussions with the select industry leaders validate the empirical findings of this study. Findings The research reveals that both institutional pressures and firm’s dynamic capabilities have significant positive impact on its economic and environmental performances in OG sector in India. However, they do not have any impact on social performance, unlike earlier findings. Research limitations/implications The main limitation of the study is generalizability of the findings, given the cross-sectional design of the study. Practical implications Insights of this study will help regulators and policymakers in formulating effective regulatory and policy frameworks, besides creating awareness amongst the organizations to simultaneously focus on all the three aspects of sustainability performance. Originality/value The research has bearing on policy formulation and creating a regulatory ecosystem to ensure overall sustainability performance of OG industry in India.
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A great deal of research has emphasized the strategic management of corporate social responsibility (CSR). However, gaps remain on how CSR can be effectively integrated with existing business processes. One key question remaining is how to design business processes so that they accommodate stakeholder requirements in an integrated manner. The purpose of this paper is to present a framework that can be used to integrate CSR into business processes. The framework highlights the concept of simultaneous ‘top-down integration’ and ‘bottom-up community-related indicators development’ approaches to CSR. These two approaches are elaborated with the help of two cases. The top-down approach focuses on building CSR into existing business initiatives through an integrated management systems (IMS) approach. This paper concludes that an IMS approach provides the infrastructure for the integration of CSR. The bottom-up approach focuses on the development of indicators linked to community initiatives. Examples of best practice for both the top-down and bottom-up approaches are provided in two case studies.
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The increasing strategic importance of environmental, social, and ethical issues as well as related performance measures has spurred interest in corporate sustainability performance measurement and management systems. This paper focuses on the balanced scorecard (BSC), a performance measurement and management system aiming at balancing financial and non-financial as well as short and long-term measures. Modifications to the original BSC which explicitly consider environmental, social, or ethical issues are often referred to as sustainability balanced scorecards (SBSCs). There is much scholarly discussion about SBSC architecture and how it can be designed to relate performance dimensions, strategic objectives, and the logical links among these elements. To synthesise the widely scattered research findings and publications on the SBSC, we conducted a thematic analysis in a systematic literature review containing 69 relevant articles spanning a period of two decades. We found that sustainability-oriented modifications of the BSC architecture are motivated by instrumental and social/political to normative theoretical perspectives. Moreover, these modifications can be mapped with a typology of generic SBSC architectures. The first dimension of the typology describes the hierarchy between performance perspectives and strategic objectives and how it is related to the organisational value system. The second dimension describes how sustainability-related strategic objectives are integrated into SBSC performance perspectives and how this is related to corporate sustainability strategy. This study contributes to the development of the emerging SBSC literature and practice and, more generally, to research on corporate sustainability performance measurement and management. We conclude with a research agenda and implications for management.
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This article engages internal organizational aspects of ‘accountability’ for corporate social responsibility (CSR) in mining by challenging the current ‘audit culture’. Audits offer a tool through which to shape and regulate corporate social performance (CSP). Where audits have limited value is in their ability to stimulate internal engagement around social and organizational norms and principles, as the process relies on auditors to generate performance data against pre-selected indicators. Data is then utilized to produce a measure of risk or effectiveness through which to demonstrate compliance. Focusing on the internal organizational aspects of accountability and the processes, mechanisms and methodologies used to establish critical reflection, three alternatives within the current audit regime are presented. These forms of ‘new accounting’ stand in contrast to conventional auditing, as their focus is on building cross-functional connections and collaborative internal relationships that are based on dialogue and mutual exchange about the problems and possibilities of CSR implementation.
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Purpose – The dynamics of organizational change related to environmental sustainability on university campuses are examined in this article. Whereas case studies of campus sustainability efforts tend to classify leadership as either “top‐down” or “bottom‐up”, this classification neglects consideration of the leadership roles of the institutional “middle” – namely the faculty and staff. Design/methodology/approach – The authors draw from research conducted on sustainability initiatives at the University of Guelph combined with a review of faculty and staff‐led initiatives at universities across Canada and the USA, as well as literature on best practices involving campus sustainability. Using concepts developed in business and leadership literature, faculty and staff are shown to be universities' equivalent to social “intrapreneurs”, i.e. those who work for social and environmental good from within large organizations. Findings – Faculty and staff members are found to be critical leaders in efforts to achieve lasting progress towards campus sustainability, and conventional portrayals of campus sustainability initiatives often obscure this. Greater attention to the potential of faculty and staff leadership and how to effectively support their efforts is needed. Originality/value – In the paper, a case is made for emphasizing faculty and staff leadership in campus sustainability efforts and several successful strategies for overcoming barriers are presented.
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The threat of climate change has elicited divergent climate policy responses from the world's major oil multinationals, splitting the oil industry into two factions. This article analyzes the causes and consequences of this split in the oil industry. First, it demonstrates that oil companies made divergent assessments of the market risks and opportunities related to climate change based on the scientific networks and policy fields in which they were embedded rather than on rational economic criteria. Second, it documents that although the climate policy split in the oil industry has had few effects on oil company operations, it changes the terms of debate over profitable corporate action on climate change, with significant material consequences for climate regulation and patterns of energy production. This analysis contributes to the debate between treadmill of production and ecological modernization theorists by highlighting the midrange processes of contestation shaping the long-term environmental trajectory of capitalism.
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This article presents the results of a study conducted in two phases within a single industry context. The first phase involved comparative case studies to ground the applicability of the resource-based view of the firm within the domain of environmental responsiveness. The second phase involved testing the relationships observed during the case studies through a mail survey. It was found that strategies of proactive responsiveness to the uncertainties inherent at the interface between the business and ecological issues were associated with the emergence of unique organizational capabilities. These capabilities, in turn, were seen to have implications for firm competitiveness. © 1998 John Wiley & Sons, Ltd.
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Purpose The objective of this paper is to investigate systematically the discipline of supply chain management (SCM) within the context of sustainability. The two concepts are increasingly aligned, and sustainable supply chain management (SSCM) represents an evolving field where they explicitly interact. Given their complex and holistic nature, breaking down the literature to understand its structures, processes, connections and limitations can provide an objective view of the status of research in these highly important fields, identifying key areas for future research/theory development. Design/methodology/approach A systematic review of current SCM literature is carried out, specifically in relation to the social and environmental dimensions of sustainability. Findings SSCM and the integration of sustainability into supply chains is a significant but evolving field evidenced by a current bias in the literature towards theory development and highly qualitative research methods. The environmental dimension is significantly better represented in the literature through specific processes at all stages of the supply chain. The social dimension is recognised, but receives less emphasis than expected given SCM's focus on interaction, relationships and communication. These two dimensions are treated separately in the literature with limited insight on how to integrate them and current SCM and sustainability research provides limited practical outputs. Research limitations/implications The review focuses on environmental and social sustainability within supply chains without explicit consideration of the economic dimension. Practical implications The review highlights the key themes and issues for supply chain managers faced with implementing sustainability. It also illustrates a number of areas for future research, along with the need for researchers to develop more practical tools for implementing SSCM. Originality/value Indicates the extent to which sustainability is integrated within SCM and where the research emphasis currently lies. The environmental dimension is significantly more defined and developed in the literature. SCM literature emphasises the importance of long‐term supplier relationships, but this “people‐focused” approach does not appear to translate into socially responsible supply chains. It suggests that the more process‐driven nature of environmental sustainability makes it easier to put into supply chain practice. There is also limited research or evidence on how the two dimensions can be integrated despite recognition of their inter‐relationship.
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Purpose This paper provides a structured literature review of sustainability in purchasing and supply management, moving beyond the traditional environmental and social sustainability. The paper reviews the concept of sustainability at three levels of inter‐organizational analysis – i.e. dyad, supply chain and network. The paper distils the nature and scope of existing research and synthesizes measures used to research sustainability across organizational boundaries. Design/methodology/approach This literature review systematically analyzes existing literature. In particular, the review focuses on definitions and measures of sustainable purchasing and supply management to obtain an accurate view of current research. Findings This paper uncovers two distinct trends in the type of research carried out. First, internal or dyadic issues are in focus and second, a tendency to deal with environmental, as opposed to social, sustainability. Despite the need to look beyond the dyad given the risks associated with the extended network, few studies do so in any of the sustainability dimensions. Research limitations/implications This review is limited by the method employed focusing on definitions and measures. Although the review considers supply chain and network research, it does so purely from a purchasing perspective, thus excluding issues such as logistics and transport. Practical implications The paper identifies areas open to future research and provides practical insights into how sustainable purchasing and supply are measured. It also synthesizes existing measures of sustainability at different levels and organizes these into a taxonomy. Originality/value The paper examines studies across multiple levels of analysis and integrates multiple fields of knowledge to show how research on sustainability in purchasing and supply is structured.
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Accounting information systems (AIS) should provide the information firms need to manage organizational activities. Environmental considerations are increasingly important in the business world, so firms are attending more to environmental risks and activities. AIS must respond to these emerging environmental requirements. We develop an information matrix for identifying alternative management strategies for framing and responding to environmental issues. The proposed matrix provides a tool for identifying the information collected, stored, analyzed, and reported in environmentally attuned accounting information systems.
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Issues in the area of performance management and management control systems are typically complex and intertwined, but research tends to be based on simplified and partial settings. Simplification has made the work easier to carry out, but it has come at the price of increased ambiguity and conflicting findings from different studies. To help mitigate these issues, this paper puts forward the performance management systems framework as a research tool for describing the structure and operation of performance management systems (PMSs) in a more holistic manner. The framework was developed from the relevant literature and from our observations and experience. In particular, it elaborates the 5 questions of Otley's [Otley, D., 1999. Performance management: a framework for management control systems research. Management Accounting Research 10, 363–382] performance management framework into 12 questions and integrates aspects of Simons’ levers of control framework.Anecdotal evidence suggests that the extended framework provides a useful research tool for those wishing to study the design and operation of performance management systems by providing a template to help describe the key aspects of such systems. It allows an holistic overview to be taken while making this a feasible task. The paper uses material from two field studies to illustrate how the framework can be used to provide an overview of the major performance management issues within an organization.
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In order for a facilities management (FM) organisation to make effective use of the results of performance measurement it must be able to make the transition from measurement to management. It must also be able to anticipate needed changes in the strategic direction of the organisation and have a methodology in place for effecting strategic change. Successful accomplishment of these two tasks represents the foundation of good performance management. This paper explores baselines for moving from performance measurement to performance management and provides a discussion of how the FM performance assessment can be used to manage the FM function effectively.
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Purpose – This paper, originally published in 1995, aims to focus on the importance of performance measurement. Design/methodology/approach – Focuses on the process of performance measurement system design, rather than the detail of specific measures. Following a comprehensive review of the literature, proposes a research agenda. Findings – The importance of performance measurement has long been recognized by academics and practitioners from a variety of functional disciplines. Originality/value – Brings together this diverse body of knowledge into a coherent whole.
Book
Sustainable development will not happen without substantial contributions from and leading roles of companies and business organizations. This requires the provision of adequate information on corporate social and ecological impacts and performance. For the last decade, progress has been made in developing and adapting accounting mechanisms to these needs but significant work is still needed to tackle the problems associated with conventional accounting. Until recently, research on environmental management accounting (EMA) has concentrated on developed countries and on cost–benefit analysis of implementing individual EMA tools. Using a comparative case study design, this book seeks to redress the balance and improve the understanding of EMA in management decision-making in emerging countries, focussing specifically on South-East Asian companies. Drawing on 12 case studies, taken from a variety of industries, Environmental Management Accounting: Case Studies of South-East Asian Companies explores the relationship between decision situations and the motivation for, and barriers to, the application of clusters of EMA tools as well as the implementation process itself. This book will be useful to scholars interested in the environmental and sustainability management accounting research field and those considering specific approaches to EMA within emerging economies.
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Although the manufacturing sector has made continuous improvements towards sustainability performance measurement, it is not yet fully exploited. In view of its premature level, the issue of understanding how to integrate sustainability performance measurement has become a matter of considerable concern for both practitioners and academics. Within this context, this research emphasizes on the need of integrating both environmental and operational aspects to support sophisticated sustainability performance measurement and decision making. By identifying a set of high level business decisions, the integrated key performance indicators - KPIs are provided along with the data and system requirements to estimate them.
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The oil and gas industry recognises the important role it plays around the world in fuelling economic development and social progress. It also understands the need to respond to stakeholder concerns, including those related to sustainability, which are of ever-increasing significance. Many oil and gas companies have begun to communicate how these concerns are being addressed by issuing sustainability reports. Given the organisational diversity, scale and complexity of many oil and gas companies, providing report content which is relevant, complete and accurate is a difficult challenge as is choosing performance indicators which allow for consistent and transparent presentation of information. To assist companies across the industry, IPIECA and API have produced oil and gas industry guidance on voluntary sustainability reporting. This paper summarises and describes the guidance, outlining its benefits and flexibility as well as the nature of the challenge which lies ahead.
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SUSTAINABILITY REPORTING: COMMUNICATING PERFORMANCEIn 1987, the Brundtland Report, "Our Common Future??, produced the widely accepted definition of sustainable development as "meeting the needs of the present without compromising the ability of future generations to meet their own needs??. But what can sustainability mean for the oil and gas industry, which produces fossil fuel required to meet basic human needs today such as food, fuel and shelter? The oil and gas industry provides a fundamental energy resource while improving health, reducing poverty, and increasing productivity for the global population. Oil and gas are therefore integral to promoting economic growth and will continue to play a major role in meeting the world's energy needs for the foreseeable future. Global energy policies are promoting low-carbon energy technologies, and the use of modern renewables will almost triple by 2035 to about 14% of total supply. However, renewables cannot satisfy global demand growth, so consumption of both oil and gas will also continue to grow. Oil and gas companies must therefore continue to discover, produce and supply these energy resources, and it is essential that they do so in a safe, environmentally sound and socially responsible manner. This requires safeguarding the environment; respecting the rights of others; protecting the health, safety and security of workers and the public; meeting increasingly stringent laws and regulations, and yet managing a range of operational, reputational and financial risks. An additional responsibility for companies is the need to communicate openly how they conduct their operations - the vision, decisions and strategies used to pursue resource developments. Sustainability reporting is therefore both a responsible and an expected method for companies to communicate publicly on environmental and social performance. The oil and gas industry has made significant progress on these objectives but challenges remain and individual companies need to tell their own sustainability stories in a clear, transparent, and honest manner. Finally, sustainability reporting also helps to establish a basis for continuous improvement in business processes and risk management. In particular, reporting has value for reputational risk, access to capital, and strengthened customer and employee relationships. For oil and gas companies, reporting can provide a robust platform for describing how strategic issues are being addressed through long-term plans and current initiatives. Stakeholders can now find details of a company's high level vision and strategy for dealing with sustainability-related impacts, implementing action plans and assessing outcomes on company websites and in annual reports.
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Throughout the decades to come world’s population is expected to rise as well as the energetic, food and water demand. All that, together with the everyday more rigid international environmental regulations alongside with the ongoing vertiginous technological advancement, will induce to a restructuration of global economy on the inter-governmental and institutional level in order to reinforce the fundamental pillars of sustainability: the environmental, social and economical. New energy systems will be implemented and scarcity of resources will be more severe, leading the economy not only to shift but to adapt to unconventional energy carriers and commodities. This combined with the targeted impact of these policies, concerning living standard improvements, social inclusion and carbon mitigation among others, will raise new and demanding challenges to face. This paper intends to present an overview of the energetic playing field throughout the transition towards a more sustainable world and the role of the Oil & Gas industry within this period. This article will identify and explain the challenges and constraints to be faced as well as the opportunities of undertaking ventures in this shifting environment. Also, the paper will broaden the concept of Green Economy, main theme of the 2012 UN’s Conference on Sustainable Development, and present strategies to develop an energy system to function and sustainably endure in time within the mentioned framework and explain why the O&G industry is a fundamental participant and a major "game changer" in this process. Petroleum holds a key role in this transition as being the most widespread energy carrier and the most competitive element of the current energy system. Therefore, the O&G industry has the opportunity to become the main "driver of change" and to impulse a more prosper and sustainable energy network for the world. It’s imperative that the O&G sector keeps a long-term perspective in order to remain in force and profitable. This paper proposes some guidelines to do so and intends to raise awareness on the fact that sustainability is not only changing the way we analyze a project but moreover the way we do business in the O&G industry.
Article
Purpose This study aims to describe and understand performance measurement system (PMS) change in an emerging economy bank. Design/methodology/approach Using institutional theory as a theoretical lens, the study uses Kasurinen's accounting change model to explain management accounting change as a product of motivators, catalysts and facilitators. The model also focuses on how confusers, frustrators and delayers inhibit PMS change and the role of leaders in the change process. Data were gathered from multiple sources including relevant internal and external documents covering a ten‐year period (1997‐2007), and semi‐structured interviews with managers from different hierarchical levels. Findings The bank's PMS experienced two significant changes from 1997 to 2007. While uncertain economic conditions, increasing competition, and pressures to improve performance and enhance accountability motivated changes in the bank's performance measurement system, the major catalysts of change were the financial losses experienced, major regulatory changes, and the appointment of a new board of directors and president. The change leader played an important role in overcoming resistance to change and in ensuring adequate technical support and training was provided to facilitate the change. Practical implications Bank managers must be aware of the influence of institutional factors on PMSs. In particular, they need to be aware of the factors that can necessitate change (motivators), initiate change (catalysts) and the prevailing conditions required to support change (facilitators) in order to maintain the utility of PMSs. Originality/value The paper provides a more detailed insight into the impact of institutional factors on changes in PMSs in the context of an emerging economy, which will assist practitioners in addressing issues concerning PMSs changes in similar contexts.
Article
This paper explores how managers perceive stakeholders’ influence for the choice of internal environmental performance indicators (EPI) that underlie strategic performance measurement systems. Drawing on the concept of levers of control, we conduct a field investigation within a large multinational firm operating in an environmentally sensitive industry. The firm pursues a proactive environmental strategy driven by a willingness to achieve corporate economic success while taking environmental issues into consideration. Our investigation encompasses interviews with key environmental executives and a review of corporate documents. We show that EPI are used as interactive and diagnostic controls, with stakeholders’ influences being integrated into the corporation through its beliefs system. We find that four distinct influence patterns emerge. These influence patterns range from being narrow and unidirectional to very broad and interactive, conditional upon the firm's environmental impact on specific stakeholders, and its need for legitimization. The study extends research on the relationships between stakeholders and corporate environmental management and reveals ways in which strategic performance measurement systems integrate environmental considerations.
Article
Purpose The paper aims to evaluate factors affecting the success of the measurement system implementation in the context of two case services with a specific measurement object – productivity. Design/methodology/approach Interviews with the users of new measurement systems are used to obtain information on the role of known technical and organizational success factors supporting measurement system implementation. Findings Two key factors were found to affect the success of the measurement system development project. First, the commitment of the operative level was achieved. Second, the chosen measurement tool was suitable for the identified managerial requirements of the organization. Research limitations/implications In order to improve external validity, it would be useful to assess the implementation of measurement systems with a similar approach in different organizations. Could the positive results described in this study be replicated? Practical implications The practical implications of this study are twofold. First, the study describes a potential and fresh approach towards measurement of performance and productivity in public organizations. Second, the experiences described can assist public managers to avoid pitfalls in the implementation of measurement systems. Originality/value Various challenges in developing measurement systems in the public sector context are well studied. It is important to better understand how to overcome the problems. In comparison to many existing studies, this research provides more specific and detailed knowledge related to a successful development project.
Article
The purpose of this paper is to investigate the effect of corporate social responsibility and benchmarking on organizational performance in the petroleum industry. We find that top management support for quality is the main driver of practices associated with corporate social responsibility. Corporate social responsibility appears to have a significant impact on internal quality results (operational performance) but it does not have a significant effect on external quality results (firm performance). We did not find a very strong relationship between benchmarking and internal/external quality results. Our findings suggest that the implementation of corporate social responsibility in the petroleum industry is economically driven. Recommendations for managers and future research have been outlined.
Article
Although organizations have embraced the sustainability rhetoric in their discourse and external reporting, little is known about the processes whereby management control systems contribute to a deeper integration of sustainability within organizational strategy. This paper addresses this gap and mobilizes a configuration approach to theorise the roles and uses of management control systems (MCSs) and sustainability control systems (SCSs) in the integration of sustainability within organizational strategy. Building on Simons’ levers of control framework, we distinguish two possible uses of a MCS and a SCS — a diagnostic use and an interactive use —, and we specify the modes of MCS and SCS integration. We rely on these two core dimensions to identify eight organizational configurations that reflect the various uses as well as their modes of integration of SCS and MCS. We characterize these ideal-type configurations, explain their impact on the triple bottom line, and describe which mechanisms allow organizations to move from one configuration to another. In so doing, we highlight various paths toward sustainability integration or marginalization within organizations. Finally, we explain how our framework can support future research on the role of MCS and SCS in the integration of sustainability within strategy.
Article
1. Introduction Sustainability can be a troublesome concept that many people find challenging even to define. The most commonly used definition is the one put forth for sustainable development by the Brundtland Commission in 1987: "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." The term sustainability came into vogue on the heels of this report, which was published in a book entitled Our Common Future.i The Brundtland Commission definition alludes to a balanced, judicious use of resources to provide decent lives for humanity both now and in the future. It is fundamentally a concept of equity; appreciating the needs of all people living and not yet born. This is a powerful challenge to the industries and people engaged in natural resource utilization. The term sustainability has often been narrowed to refer to the mere longevity of an organization, group, or profits. This is myopic. Without appropriate attention to the sustainability of critical resources, nothing else is sustainable.. Likewise, this term has somehow pitted the valued petroleum resource against what are still speculative technologies (i.e. the alternatives) rather than addressing how we must judiciously use petroleum now to benefit our future.
Article
Business has a fundamental role to play in delivering Sustainable Development – the process needed to achieve a sustainable society. Sustainable Development is becoming an important issue for the oil and gas industry to address. There is, however, a lack of tools for improving decision making in this area. The paper outlines a tool (the Sustainability Assessment Model – SAM) which has been developed to assess whether or not a project can be said to be "sustainable". A project focus has been adopted in developing the tool because we believe that greater control over impacts can be achieved at this level. However, the tool can be used to aid specific design decisions (eg development scheme selection or concept selection) and also to assess an organisation's overall performance. The SAM assesses the social, environmental, economic and resource usage impacts of a project over its full life cycle. In the case of a hydrocarbon development this includes the design, construction, installation and commissioning of the facilities, the production of oil and gas and the eventual decommissioning of the facilities. This part of an oil and gas development is (usually) within the control of the operator. The SAM, however, extends the analysis beyond exploration and production and also assesses impacts from hydrocarbon refining, the manufacture of products and the eventual product use. It also addresses the possibility of remediation and restoration options. The SAM monetises all the impacts so that they can be compared on a like-for-like basis. This also allows the impacts to be combined into a single measure (which we have called the SAMi, or Sustainability Assessment Model indicator) which reflects overall whether a project is "sustainable" or not.
Article
The Royal Dutch Shell Group's 1997 policy on Health, Safety and Environment included a commitment to sustainable development. Since then there has been a struggle to grasp the concept and to identify areas in which our inherently unsustainable business can make its mark. Shell has interpreted the Brundtland Commission's definition of sustainable development in terms of three fundamental pillars: economic growth, environmental conservation and societal gain. This paper follows ‘Shell in Egypt's journey from making the commitment, through a phase of ad hoc contributions, and to a stage where sustainability is managed as any other business item. The ultimate aim of the paper is to demonstrate how sustainability will be introduced into the corporate business plan, as a measurable item against which we can measure our performance, be audited and benchmark. Also to offer ideas as to how this can be achieved in other companies.
Article
Sustainable supplier relationship management (SSRM) has become crucial in companies’ sustainability efforts. A firm’s corporate image, in terms of economical, environmental and social behavior, heavily depends on its supply chain and the sustainability performance of each and every chain link, including suppliers and sub-suppliers. In a multiple case study of seven European chemical companies, we investigate how firms manage their supplier relations in interdependent situations. Our results provide evidence that sustainability leaders intensively invest in SSRM practices in order to manage sustainability even beyond their corporate boundaries. Additionally, we identified corporate strategy alignment, risk perception and the listing in sustainability indices as key influential factors, which foster and limit a focal firm’s engagement in SSRM. The contribution of this paper is twofold: First, in-depth insights on how sustainability leaders within the chemical industry introduce sustainability into their supplier relationship management processes are presented and compared to the practices of sustainability followers. Second, the neglected impact of making sustainability a priority in the focal firms’ relationship with their suppliers is examined through in-depth case studies.
Article
To gain an in-depth theoretically-grounded understanding of managing corporate social responsibility (CSR), the current study offers four key propositions for CSR theory development: (1) Living corporate social responsibility from the inside out, (2) Earning trust of the public and the media, (3) Giving back as a community citizen, and (4) Accepting that we’re all in this together, but still unique. Also offered are five best practices for public relations in the oil industry. All emerged during in-depth interviews with three senior public relations managers of a leading independent US oil company; executives who have navigated CSR decision making and practices through nearly five decades (1966–2010) at different points in time. In the wake of two massive 2010 oil spill crises in North American waters that garnered extensive media attention, findings are particularly relevant for advancing CSR theory and for providing complex insider perspectives less traveled in the public relations literature.
Article
This article explains why sustainable business has caught the spotlight at this particular time. Main drivers are the shift in power relationships between states, firms and households, the emergence of civil regulation and the communication through networks. The implication of this trend towards sustainable business is that firms will consciously need to focus on creating value not only in financial terms, but also in ecological and social terms. The challenge facing the business sector is how to set about meeting these expectations. Firms will need to change not only in themselves, but also in the way they interact with their environment. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment
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