Integrating ESG into the Management Control Systems at Sinhan Bank Indonesia

This research aims to analyse how PT Bank Shinhan Indonesia integrates Environmental, Social, and Governance (ESG) principles into the Management Control System (MCS) to achieve sustainable performance. A qualitative approach with an exploratory study method was used to delve into the process of sustainability integration in the Management Control System (MCS) through in-depth interviews with seven key informants from various strategic departments, as well as document analysis such as sustainability reports and the bank's internal policies. This research is based on institutional theory, focusing on mimetic, coercive, and normative pressures as drivers of MCS change. The eight control indicators studied include planning control, policy, operational, employee, customer, product and service innovation, Key Performance Indicator (KPI), and culture. The research results show that Shinhan Bank Indonesia has adopted ESG strategies through internal policies, green product innovations, strengthening sustainability-based KPIs, and instilling ESG values into the organisational culture