Strategiczna rachunkowość zarządcza w zrównoważonym rozwoju jednostek gospodarczych

Electronic version of the publication available under CC BY-SA 4.0 license after 12 months from the date of release: February 2025

Strategic Management Accounting in the Sustainable Development of Business Entities

The solution to the problems of the modern world lies in the consistent and comprehensive implementation of the concept of sustainable development at all levels. The current corporate priority is to provide a direction that generates profitable solutions to problems and meets the needs of people and the planet, rather than deriving profits from creating problems for either. The value creation referred to here encompasses not only financial value but also value for a broader group of stakeholders. This focus drives the demand for systems that support strategic management.

Among the systems playing a significant role in the formulation and implementation of business strategy, as well as in shaping organisational outcomes, is strategic management accounting, which bridges the gap between strategy and accounting. There is consensus among both theoreticians and practitioners that strategic priorities should be supported by appropriate management accounting tools, which facilitate strategic decision-making processes and their execution to achieve stakeholder objectives. The dynamic changes in both external and internal business environments are driving the evolution of competitive strategy, and the theoretical and methodological assumptions of strategic management accounting should evolve accordingly. This results in the need to adapt it to the current needs of managers, who are focused on implementing sustainable development strategies.

The aim of this monograph is therefore to determine the conditions influencing solutions in strategic management accounting, taking into account sustainability aspects, and to elucidate its essence, characteristics, scope, and tasks, as well as the instruments employed and the competencies and skills of management accounting experts who support managers throughout the process of creating lasting value—from vision and mission, through strategy formulation and implementation, to performance measurement and stakeholder reporting.

The entire discussion is encapsulated in seven chapters. The content presented is based on extensive studies of domestic and international literature and the authors’ own research. As a result, the authors have formulated the following conclusions:

1. Economic entities operate based on the concept of corporate social responsibility, which correlates with sustainable development, ensuring high environmental, economic, and socio-cultural standards for all living on Earth.

2. Strategic management accounting has evolved and adapted to the changing needs of business management to fully fulfil its defined tasks. According to most authors, its attributes include: external environment orientation, analysis of both financial and non-financial data, and a long-term perspective.

3. Digital technologies, combined with a shift in mindset, can offer new opportunities for planning, management, and sustainable development. Finance and accounting staff also play a crucial role here, with their involvement in strategic management processes dependent on a range of factors, including accountants’ skills and willingness, how they are perceived by directors and management, as well as the informational and resource conditions of the enterprise. While many required skills are already possessed by accountants and controllers, others will still need to be developed.

4. The new tasks and challenges facing strategic management accounting necessitate the use of modern tools. To fill the existing gap, instruments that support the creation and conceptualisation of strategy, as well as its translation into financial plans and budgets, have been presented.

5. The usefulness of cost information in enhancing the capacity to meet users’ informational needs and improve the effectiveness of strategic decision-making processes, including in the area of sustainable development, was also highlighted.

6. Strategic performance management requires the modification of traditional tools such as the Balanced Scorecard (BSC) to incorporate environmental and social aspects. Integrating sustainability into traditional performance metrics within the framework of the Sustainability Balanced Scorecard (SBSC) enables a better reflection of the organisation’s comprehensive objectives.

7. Managing sustainable development requires mature risk management, which remains central to managerial focus. According to the COSO-WBCSD Framework, the risk management council oversees the company’s strategy and governance, supporting the leadership in achieving its strategy and business objectives. The multidisciplinary approach required for managing sustainability risks means that the council should include not only risk specialists but also experts in strategic management accounting and broader ESG issues.

8. Legislative changes are promoting the integration of internal reporting with external sustainability reporting, covering hundreds of qualitative and quantitative indicators. It is crucial that performance measurement integrates various metrics, both financial and sustainability-related, thereby addressing stakeholders’ needs, fulfilling their informational requirements, and emphasising the selection of key metrics that require constant monitoring.

Recognising the need for the continuous adaptation of the theoretical and methodological assumptions of strategic management accounting and its importance in decision-making processes, further research in the following areas is warranted:

1. Addressing technological, social, and environmental challenges in the context of Accounting 5.0. This includes analysing the utility of artificial intelligence in taxes and accounting, and developing “information maps for specific stakeholder groups.” As a new research direction, the area of relevant, stakeholder-tailored information, or “made-to-measure” information, should be highlighted. Further research directions will be shaped by the automation and robotisation of accounting, with an emphasis on the accounting of virtual robot activities.

2. The leading role of strategic management accounting specialists in decisionmaking processes, with a focus on their required and existing competencies, roles, and conditions, particularly in areas that will be difficult to replace with technology, including artificial intelligence.

3. Research aimed at generating a basic, universal set of useful techniques is warranted, in line with the classification proposed by S. Cadez and C. Guilding, which continues to be referenced in literature despite changing business conditions.

4. Ensuring the quality of non-financial reporting and sustainability reporting, as well as the external assurance of ESG reports, is an area worthy of scientific and practical inquiry.