The Role of Control System in Increasing Corporate social Performance: The Use of Levers of Control

Abstract

One important instrument to be used in the control system design is strategic behaviors that canlead to the expected organization performance. Referring to the extended definition of strategicbehavior using stakeholder-based strategic behavior, corporate social performance is kind ofstrategic behavior to be influenced by using control system. This paper discusses how controlsystem, using Simons’ levers of control can play important role in increasing the corporate socialperformance. The interaction between control system, including belief system, boundarysystem, diagnostic control system, and interactive control system, as well as the corporate financialperformance (CFP) can affect the corporate social performance (CSP) due to fact thatincrease in CFP resulting from the appropriate use of control system components enables thecompany has more chance to do the CSP. The levers of control are deemed to form an integralpart of employee socialization and support the development of an organization’s culture, thesystem of shared beliefs, values, norms, and mores of organizational members which aredeemed to be a primary determinant of the direction of employee behavior. Copyright © www.iiste.org