Managing Beyond the Boundaries: A qualitative case study on how management control systems can be used to reduce Scope 3 GHG emissions in the upstream supply chain

Sammanfattning

This thesis explores how environmental sustainability can be integrated into management control systems (MCSs) to reduce Scope 3 GHG emissions in the upstream supply chain. Using Hopwood's (1974) framework of control, the study investigates how the interaction between administrative, social and self controls unfolds in practice. The case company is a multinational firm in the health and hygiene industry with a long-standing sustainability focus. Drawing on 10 semi-structured interviews, the thesis suggests that effective sustainability integration depends on the interplay of all controls rather than their isolated use. The findings show that, when embedded in a strong sustainability culture, social controls such as bottom-up approaches facilitate employees' internalization of environmental objectives. Simultaneously, administrative re-centralization is required to maintain long-term strategic coherence. Additionally, the study finds that the suppliers' interpretive capacity influences the effectiveness of sustainability controls in inter-firm settings, and that this capacity can be cultivated through social controls. The study further identifies two structural constraints that hinder full integration due to the conflicting paradigms of profitability and sustainability: A growth versus absolute targets paradox and a market readiness gap.