ABSTRACT:
Although the number of organizations issuing an Integrated Report (IR) is increasing, as well as research papers on the subject of Integrated Thinking & Reporting (ITR), few publications focus on the role and use of management control systems (MCS). MCS are necessary in order to both improve the quality of Integrated Reports and internalize the concept and accountability regarding a strategy based on the concept of Integrated Thinking and Reporting. In this underlying qualitive research the question is explored whether a Management Control System based on the Levers of Control theory (LOC theory) can support ITR. A literature study and coding activities have been performed which show that the underlying assumptions regarding assets and resources as recognized in the LOC theory align with the capitals from the Value Creation Framework of the IR guidelines, with the exception of natural capital. The research also shows that the perspectives mentioned in the LOC theory with regard to strategy and strategy execution can be shaped to support the different elements of the IR guidelines regarding strategy and strategy execution. Several adjustments to the original LOC-theory are proposed from this study in order to design an MCS based on the LOC theory in order to support Integrated Thinking and Reporting.
KEYWORDS: Integrated Thinking & Reporting, Management Control Systems, Levers of Control
