Research Assignment; Sustainability Read the following article by Marc J. Epstein, Adriana...

Research Assignment; Sustainability Read the following article by Marc J. Epstein, Adriana Rejc Buhovac, and Kristi Yuthas: “Implementing Sustainability: The Role of Leadership and Organizational Culture,” Strategic Finance, April 2010, pp. 41–47. The article explains the use of management control systems in the context of the firm’s sustainability objectives. The research for this article was funded by the Institute of Management Accounting (IMA).

The article is available in the Cases and Readings Supplement that comes with the text; it can also be accessed using the link provided on the text website.

Required

1. What is the difference between local and corporate decision making, and what is the significance of the difference for sustainability?

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2. Study the Corporate Sustainability Model in Figure 1. Based on this study, do you think sustainability should be managed by means of a cost center, profit center, the balanced scorecard, or some other method, and why?

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3. Identify two of the leading companies in the area of sustainability and explain why you think each of these companies has chosen to take a leadership role in sustainability.

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4. Review Exhibit 18.4 in the text. Do you think sustainability is best managed as part of an informal or a formal type of management control system? Briefly explain your answer.

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5. Explain briefly the role of leadership in sustainability management.

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6. Explain briefly the role of organization culture in sustainability management.

EXHIBIT 18.4 Systems for Management Control