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The ethics of management control systems

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  • Rosanas, Josep M.

    (IESE Business School)

  • Velilla, Manuel

    (IESE Business School)

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 systems should be like in order to be compatible with the nature of human persons.

Suggested Citation

  • Rosanas, Josep M. & Velilla, Manuel, 2004. "The ethics of management control systems," IESE Research Papers D/563, IESE Business School.
    • Handle: RePEc:ebg:iesewp:d-0563
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    File URL: http://www.iese.edu/research/pdfs/DI-0563-E.pdf
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    References listed on IDEAS

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    6. Margit Osterloh & Bruno S. Frey, "undated". "Corporate Governance for Crooks? The Case for Corporate Virtue," IEW - Working Papers 164, Institute for Empirical Research in Economics - University of Zurich.
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