The Ethics of Management Control Systems

20 Pages Posted: 21 Sep 2004

See all articles by Josep M. Rosanas

Josep M. Rosanas

University of Navarra - IESE Business School

Manuel Velilla

University of Navarra, IESE Business School

Date Written: June 2004

Abstract

In this paper we review the conventional analyses of management control systems, to conclude, first, that the illusion of control can mislead managers into believing that everything can be controlled and monitored, and, second, that no incentive system based only on extrinsic rewards can motivate individuals properly. Then, we investigate the philosophical foundations of the basic assumptions that, implicitly or explicitly, are made about the nature of the acting person. Based on personalist phenomenology, we show how the development of technical and moral values is crucial to the long-run survival of organizations. We end by offering some guidelines as to what control.

Keywords: Business ethics, ethical foundations of organization, incentives, management control systems, values

JEL Classification: A12, D64, M41, M52

Suggested Citation

Rosanas, Josep M. and Velilla, Manuel, The Ethics of Management Control Systems (June 2004). IESE Business School Working Paper No. 563, Available at SSRN: https://ssrn.com/abstract=588661 or http://dx.doi.org/10.2139/ssrn.588661

Josep M. Rosanas (Contact Author)

University of Navarra - IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain
34 932534200 (Phone)
34 932534343 (Fax)

Manuel Velilla

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

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