How does Management Accounting Tackle the Environment, Society and Governance?

Abstract

This paper aims to present the viability of “governance control”, a method that the author finds more appropriate in tackling the environment, society and governance. It is necessary that a control theory must accept competitive edge, value creation, and sustainability as contradictory factors and respond to them flexibly. Because these factors contain long- and short-term temporal paradoxes, financial and nonfinancial paradoxes, and paradoxes between internal aspects and external ones of companies. How do we tackle the wide variety of paradoxes or restrictions in companies? Different from the conventional control in management, it emphasizes the development of systems of control that consider not only the inside, but also the outside of companies, that is, more outward looking management control that prioritizes social/external aspects. In short, based on the discussion, this paper tries to construct a new control theory by clarifying the viability of “governance control”.