Management Accounting Change and CSR Budgetary Control of an Oil and Gas company in Crisis: A Literature Review

The world oil price crisis has forced national oil and gas companies to make changes. In response to the environmental changes, the companies have been adopting various practices to survive in business. Most companies abandon their CSR activities to emphasize efficiency by reason of the companies’ survival without considering social and environmental interests. To deal with an uncertain economic environment due to falling world oil prices, SKK Migas is preparing strategic adaptations. Management accounting can play an important role in the company's surviving strategy to support the CSR program. The literature review will be supported by NIS (New Institutional Sociology Theory), this theory interprets accounting practices as characteristics that could legitimize organizations. The NIS focus on social and technical, both within and without private organizations, that considered in the process of managerial accounting changes. In practice, it may be difficult to realize predetermined means-end relationships in the use of accounting to improve financial results under the management approach, given the wider concerns of organizational change. This study investigates management accounting practices in organizational change, specifically by focusing on internal policy for the CSR program. The contribution of this study to the literature involves an understanding of CSR activities with budgetary control as a means of controlling management accounting practices.