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Abstract

This chapter is excerpted from ‘Responsible Management Accounting and Controllling: A Practical Handbook for Sustainability, Responsibility, and Ethics'. Sustainability is becoming a business megatrend. The issue of this book is to be seen in the fact that controlling departments are hardly involved in sustainability topics and do not contribute to corporate responsibility. This book postulates the following assertion: responsible controlling is indispensable to make an organization more responsible. The objective of this book is the conceptual development of a responsible controlling framework toward decision making which is based on an ethical fundament in order to make a company a responsible business. This book presents a thoroughly examined recommended course of action regarding responsible controlling for practitioners based on a profound theoretical background. We take a close look onto responsibility. In this context we find out that responsibility means recognizing the unimpeachable freedom of all human beings. Corporate responsibility deals with the legitimate claims of all stakeholders. Ethics as a basis for responsibility must not be understood as one ethical approach in the realms of consequentialism or nonconsequentialism. Rather a prism of ethical theories helps to better understand the issue at hand. Especially Kant's categorical imperative, extended by a consequentialist view, is helpful. I show what is to be understood by controlling in an organizational context and in which areas controllers are active. Moreover we will regard different controlling approaches toward sustainability. Yet, we realize that the prevalent controlling concepts are not sufficient with respect to responsibility. Through the development of a responsible controlling framework I give recommendations how the status quo of controlling should be altered in terms of both tools and mindsets. In detail I elaborate a twelvestep responsible controlling roadmap which shows how controlling can contribute to foster a corporation's responsible behavior and how sustainability topics can be integrated in management decisions. With regard to decisions, I expose that the basis for good decisions is to be seen in the recognition of all legitimate claims and thus in the unimpeachable human dignity of all human beings. I do not provide a catalogue with clear-cut answers or behavioral instructions. On the contrary, it becomes evident, that ethics as a critical reflection effort is central to responsible controlling. Decisions in a responsible sense will not be made on hard facts, like profit, as the sole criterion. Soft facts must also be considered. I conclude with the defense of my assertion. Responsible controlling must first and foremost be understood as a mindset. If controllers change their mindsets and their tools and encourage others to do so as well, I claim as a conclusion that responsible controlling is an uncommon but indispensable approach of making an organization more responsible.

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Abstract

This chapter is excerpted from ‘Responsible Management Accounting and Controllling: A Practical Handbook for Sustainability, Responsibility, and Ethics'. Sustainability is becoming a business megatrend. The issue of this book is to be seen in the fact that controlling departments are hardly involved in sustainability topics and do not contribute to corporate responsibility. This book postulates the following assertion: responsible controlling is indispensable to make an organization more responsible. The objective of this book is the conceptual development of a responsible controlling framework toward decision making which is based on an ethical fundament in order to make a company a responsible business. This book presents a thoroughly examined recommended course of action regarding responsible controlling for practitioners based on a profound theoretical background. We take a close look onto responsibility. In this context we find out that responsibility means recognizing the unimpeachable freedom of all human beings. Corporate responsibility deals with the legitimate claims of all stakeholders. Ethics as a basis for responsibility must not be understood as one ethical approach in the realms of consequentialism or nonconsequentialism. Rather a prism of ethical theories helps to better understand the issue at hand. Especially Kant's categorical imperative, extended by a consequentialist view, is helpful. I show what is to be understood by controlling in an organizational context and in which areas controllers are active. Moreover we will regard different controlling approaches toward sustainability. Yet, we realize that the prevalent controlling concepts are not sufficient with respect to responsibility. Through the development of a responsible controlling framework I give recommendations how the status quo of controlling should be altered in terms of both tools and mindsets. In detail I elaborate a twelvestep responsible controlling roadmap which shows how controlling can contribute to foster a corporation's responsible behavior and how sustainability topics can be integrated in management decisions. With regard to decisions, I expose that the basis for good decisions is to be seen in the recognition of all legitimate claims and thus in the unimpeachable human dignity of all human beings. I do not provide a catalogue with clear-cut answers or behavioral instructions. On the contrary, it becomes evident, that ethics as a critical reflection effort is central to responsible controlling. Decisions in a responsible sense will not be made on hard facts, like profit, as the sole criterion. Soft facts must also be considered. I conclude with the defense of my assertion. Responsible controlling must first and foremost be understood as a mindset. If controllers change their mindsets and their tools and encourage others to do so as well, I claim as a conclusion that responsible controlling is an uncommon but indispensable approach of making an organization more responsible.

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