Article

Seeking legitimacy: Social reporting in the healthcare sector

March 2013
Accounting Forum 37(1):54–66

DOI:10.1016/j.accfor.2012.11.001

Authors:

Patrizio Monfardini

Università degli studi di Cagliari

Ruggiero Pasquale

Università degli Studi di Siena and Brighton Business School

This study aims to contribute to the legitimacy theory by evaluating the legitimizing capacity of a social reporting practice performed by a healthcare trust. The study is based on an in-depth analysis of a significant case of social reporting by an healthcare trust, using a multi-method research approach.The study revealed that a social report can provide legitimacy, although a number of factors may impede it. Managing these factors is crucial in order to avoid cynicism from stakeholders. Distrust may emerge when the social report is (mis)used to legitimize the management and the organization instead of the performance achieved.

Online sustainability disclosure by Spanish hospitals: an institutionalist approach

Article

Mar 2021

Purpose This paper examines the level of sustainability disclosures provided by Spanish hospitals using exclusively the information revealed in their institutional websites. Based on different levels of disclosure, the authors try to find the possible reasons why some Spanish hospitals reveal more sustainability information than others. Design/methodology/approach To achieve this goal, the authors conducted a content analysis of the official websites of all Spanish hospitals identified by the Ministry of Health, Social Services and Equality. Findings The results reveal that Spanish hospitals seem to use sustainability disclosures for different legitimizing purposes. In general, the results indicate that Spanish hospitals may be driven by symbolic rather than substantive actions to achieve legitimacy from stakeholders. Originality/value Due to the lack of empirical research on the hospital sector, more research is required to improve understanding of why hospitals disclose sustainability information or not.

Non-financial reporting formats in public sector organizations: a structured literature review

Article

Jul 2020

Purpose Research dealing with non-financial reporting formats in public sector organizations is progressively expanding. This paper systematizes the existing literature with the aim of understanding how research is developing and identifying the gaps in need of further investigation. Design/methodology/approach A structured literature review was conducted by rigorously following the steps defined in previous studies. The structured nature of the literature review paves the way for a solid understanding and critical analysis of the state of the art of research on non-financial reporting formats in public sector organizations. Findings The critical analysis of the literature shows that most existing studies have focused on sustainability reporting in higher education institutions, local governments and state-owned enterprises, while remaining silent on the healthcare sector. Additional theoretical and empirical approaches should feed future research. Several areas deserve further investigations that might impactfully affect public sector organizations, standard setters, practitioners and scholars. Originality/value This paper offers a comprehensive review of the literature on different reporting formats that public sector organizations adopt to report various dimensions of their performance to both internal and external stakeholders. The structured literature review enables the identification of future directions for the literature in this field.

EFEITO DA RESPONSABILIDADE SOCIAL CORPORATIVA E DA GOVERNANÇA CORPORATIVA NO DESEMPENHO EMPRESARIAL NO SETOR DE SAÚDE

Article

Full-text available

May 2020

O estudo tem o objetivo de analisar o efeito da responsabilidade social corporativa e da governança corporativa no desempenho empresarial no setor de saúde. Para tanto, por meio de regressão quantílica com dados em painel, são analisadas 453 empresas de capital aberto (1.825 observações) do setor de saúde, de 31 países, que possuem dados nas bases Thomson Reuters Eikon e World Bank, referentes ao período 2010-2018. Os resultados demonstram que a responsabilidade social corporativa e a governança corporativa são positivamente correlacionadas, e que essa relação afeta positivamente o desempenho empresarial de mercado, mensurado pelo Q de Tobin, e negativamente o desempenho empresarial operacional, medido pelo Return On Assets. Desse modo, verifica-se que as práticas ambientais, sociais e de governança corporativa são relevantes para a legitimação das empresas do setor de saúde apenas na perspectiva da criação de valor. Portanto, considerando-se a alta relevância social e econômica do segmento, tem-se que, para se perpetuar no mercado, a empresa do setor de saúde deve buscar melhorias ou implementar práticas de responsabilidade social corporativa e de governança corporativa.

What is the stock of the situation? A bibliometric analysis on social and environmental accounting research in public sector

Article

Jun 2018

Purpose The purpose of this paper is to provide a picture of the state of the art in social and environmental accounting research applied to the public sector, highlighting different streams and the main gaps in current literature and providing input for future research. Design/methodology/approach A bibliometric method was used to analyse the characteristics, citation patterns and content of 38 papers published in international academic journals. Findings The findings show that the research on social and environmental reporting in the public sector is still at an early stage. Current investigations, although slowly on the increase, are still very few and localised. Most papers are about the reasons why public organisations report, what and how they report, but there are so many aspects that need to be investigated more in-depth or require extra validation in order to open new directions for future research, among which the relationship with and the differences between other non-financial type of reporting, namely ICR and IR. Research limitations/implications The study shows some limitations, mainly related to the adoption of the bibliometric method. Indeed, it does not take into account books and chapters but only papers published in international and academic journals. This leads to exclude a significant part of the existing literature and other relevant contributions on the field. Originality/value Social and environmental reporting practices are quickly spreading in the public sector. The field is particularly interesting, given the specific connotations of this kind of organisations. However, the literature is clearly not exhaustive and there is not a comprehensive and systematic review of the state of the art on the subject.

The relationship between disclosure and assurance in sustainability reporting: The healthcare companies

Chapter

Jan 2014

Attention towards sustainability reporting is very high with reference to healthcare sector. The paper aims to assess the maturity level of sustainability reporting and to measure its quality by evaluating the GRI indicators currently disclosed. The research was carried out using the inductive method. We delimited the study to GRI's health care products category and we evaluated the quality of sustainability reporting by analysing the indicators disclosed in 2012 reports according to GRI guidelines. The research gives an overview of sustainability reporting in health care companies by evaluating the quality level of their disclosure. The results confirm previous research by highlighting the necessity to improve sustainability reporting. Moreover, they show there is a link between the quality level of indicators disclosed and the presence of third party assurance. The paper provides one of the first in-depth studies of sustainability reporting quality for the healthcare sector included in the GRI database. Moreover, it is a response to the need for more corporate social reporting research in the context of healthcare.

IS MANDATORY SUSTAINABILITY REPORT STILL BENEFICIAL?

Article

Full-text available

Dec 2021

Astrid Rudyanto

The latest regulations in Indonesia (SEOJK No 16/SEOJK.04/2021) have required public companies to make a sustainability report every year in order to increase sustainable investment. Prior to this regulation, several public companies had made sustainability reports and received benefits of sustainability report. This makes issuers ask whether after being obligated, public companies still get the benefits that have been obtained from voluntary sustainability reports and under what conditions the mandatory sustainability reports are beneficial for public companies. This study answers the public companies' doubts by conducting a systematic literature review on research on mandatory and voluntary sustainability reports in Q1 and Q2 journals from 2008-2018. Before answering the issuers' doubts, this study explains the reasons why issuers make voluntary sustainability reports and the benefits derived from voluntary sustainability reports. After that, based on previous research, this study explains whether the benefits obtained from voluntary sustainability reports can still be obtained in mandatory sustainability reports. This study found that sustainability reports were made because of the desire to benefit from these reports initiated by company leaders coupled with institutional pressure. The benefits of voluntary sustainability reports are the positive perception of shareholders and increased concern for the company's sustainability. Mandatory sustainability reports can still provide some (though not all) of the same benefits as voluntary sustainability reports. In addition, the sustainability report must be able to cover the weaknesses of the voluntary sustainability report with the condition that there is strict legal coercion, strict supervision, and the addition of an obligation to audit sustainability information which is strengthened by market demands to make a sustainability report. Therefore, the Indonesian government must pay attention to these conditions for this regulation to be implemented properly.

Non-financial Information About Intangibles and CSR in the Context of Mandated Non-financial Disclosure: A Configurational Approach for Italian Listed Companies

Chapter

Feb 2022

As a result of the EU regulatory body’s recent choices to mandate companies’ non-financial information (NFI) with the 2014/95/EU Directive, this study investigates the extent to which NFI about Intangibles, Intellectual Capital, and CSR affect market performance. Specifically, we address the question of whether different NFI configurations/combinations lead to successful performance. We considered various NFI factors/characteristics that may affect the performance level (the number of pages of non-financial statements, presentation of the statement separately from or aggregated with the annual report, the same or different auditor for the statement and annual report, and the number of times keywords are found in reports). The analysis was tested on a sample of 81 non-financial reports of Italian listed companies for 2017, which is the first year of adoption of Directive 95/2014/EU in Italy under the Decree 254/2016. The study uses Fuzzy-set Qualitative Comparative Analysis (FsQCA) to obtain a holistic view of the examined interrelationships, as opposed to traditional net effect approaches that assume symmetrical and linear relationships among variables. Our findings provide new insights into the possible association between NFI and companies’ performance. Thus, we provide evidence that a higher level of financial performance originates from several possible combinations/configurations of NFI and this appears to be in line with the emergent scholar debate on intellectual capital and CSR reporting and disclosure.KeywordsMandatory disclosureNon-financial informationIntellectual capitalIntangiblesCorporate social responsibilityMarket performanceQualitative comparative analysis

A Systematic Literature Review of Theories Underpinning Sustainability Reporting in Non-financial Disclosure

Chapter

Full-text available

Feb 2022

Many theoretical frameworks can inform the study of sustainability reporting in non-financial disclosure. This research intends to contribute to the accounting literature through a systematic literature review of 205 research articles published from 1989 to 2019. These articles involve the application of different theories to the study of social, environmental, and sustainability reporting. This study is the first systematic literature review focusing on the various theoretical approaches—and their interconnections—that showed a successful capacity to explain firms’ commitment toward SES reporting. Besides the main theories—specifically legitimacy, stakeholder, and institutional—this study will discuss the emerging application of other ideas to the field of sustainability reporting, with particular reference to agency, signaling, discourse, attribution, social movement, structuration theories, and multi-theory frameworks. This study can help scholars in need of a systematization of the last 30 years of literature concerning theoretical frameworks able to support the study of non-financial disclosure. Moreover, this contribution can help policymakers and practitioners to better understand the rationales behind firms’ commitment to voluntary non-financial disclosure and the arguments advocating mandatory disclosure frameworks concerning sustainability issues.KeywordsTheories for sustainabilitySustainability reportNon-financial disclosureLiterature reviewTheoretical approaches

Flows of information and meaning: a vocabulary approach to integrated thinking and reporting

Article

Jun 2020

Purpose Integrated reporting (IR) is increasingly becoming a practice useful not only for accountability but also for managerial purposes because of its potential role as a signifying practice for integrated thinking (IT). In this perspective, this paper aims to explore which of the objects that are represented in integrated reports provide materiality and common understanding to the concept of IT for its effective implementation within organizations. Design/methodology/approach This paper is based on a vocabulary approach for interpreting the texts of integrated reports as systems of words that are able to provide meaning for a common understanding of the concept of IT. In particular, by focusing on words and their relationships, the authors combine textual analysis and network text analysis to examine the structure of meaning embedded in the texts of integrated reports of five organizations, which serve as empirical cases for analysis during the period 2012-2018. Findings The concept of IT is dynamic in its meaning since in integrated reports it is represented by referring to different objects, in the case different types of capital (i.e. financial, human, social-relational, process, organizational and commercial), which are related to each other while following different paths over time. The dynamic nature of the meaning of IT affects the semantic orientation of the reports in a mutual relationship between IT (which conveys flows of information within the reports) and integrated reports (through which flows of meaning are made visible). Originality/value This paper opens the way to a linguistic approach for analyzing the different concepts related to IT to make them meaningful in creating (at least temporarily) a common understanding, as well as facilitating coordination within organizations and between organizations and their environment.

Determinants of corporate social performance disclosure: a literature review

Article

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May 2020

Purpose This review aims to identify the determinants of voluntary disclosure of corporate social performance (CSP) and to analyze and consolidate previous quantitative studies to identify the theoretical perspectives and the variables used in measuring the determinants of CSP disclosure (CSP-D). Design/methodology/approach A literature review of articles published from 1987 to 2015 was conducted using the three databases, Ebsco, ISI and Jstor, with CSP-D as the dependent variable. The goal was to identify the theoretical perspectives underlying the studies and the independent variables. Findings The literature revealed a set of variables and their general measures, but the consensus confirmed that there was no single explanation for what determined CSP-D. The published theories that support a relationship between CSP-D and its determinants are legitimacy, institutional, stakeholder, agency and voluntary disclosure theory. Originality/value The results allowed us to identify the perspectives underlying the major theories and disclosed a set of factors considered by the literature as the ones that influence CSP-D. This information will be useful for researchers interested in developing their own studies on CSP-D because it presents the evolution of CSP-D factors over time and organizes the findings of multiple studies developed since the emergence of the theme.

Sustainability, Popular and Integrated Reporting in the Public Sector: A Fad and Fashion Perspective

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Aug 2018

This paper provides a comparative analysis of different public accountability means used in the public sector - namely sustainability reporting, popular financial reporting and integrated reporting - in order to highlight their similarities and differences, and reflect on their development, with specific reference to the Italian context. In particular, we speculate about the practical and research implications of their emergence, through the lenses of accountability and managerial fad and fashion literature. The main novelty of the paper is that it is one of the first studies providing a comparative analysis of the three reporting tools debated both in practice and in research. We argue about their diffusion patterns, the commonalities and differences, which suggests different stages of evolution, different actors and forces at play. We provide some preliminary evidence on the risk that accountability innovations may end up just in a fad and fashion uptake, creating inefficiencies and not achieving the aims they are intended for. We also show how the available frameworks and standards have more in common than not, and that there is a risk of creating only new labels, without real innovation or improvement of public accountability.

A Decade of Environmental Accounting Reporting: What we know?

Article

Jul 2018
J CLEAN PROD

This study presents a literature review of environmental reports based on papers published in 20 accounting journals between 2006 and 2015. A majority of the papers were published in journals, such as Accounting, Auditing & Accountability Journal, Accounting Forum, Critical Perspectives on Accounting, and Accounting, Organizations and Society. For each article, the aims and results obtained, methodologies adopted, data sources, industrial sectors, and countries involved were identified. Most of the studies present a longitudinal approach and use content analysis as their methodology. The most extensively used theories are the legitimacy and stakeholders theories. The purpose of this study is to contribute to the reflection of the state of the art of research in social and environmental accounting. Keywords: Social and Environmental Accounting; Environmental Report; Accounting Journals.

Conference Paper

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Sep 2017

Eating our way to sustainability: Are European meat and dairy processors living up to our expectations?

Thesis

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Feb 2015

Marianna Lena Kambanou

In Europe, sustainability in the meat and dairy industry has emerged as an issue of great concern for society. Research and pressure centre on the agricultural component and little attention has been given to the processing industry despite the integral role it plays in the European meat and dairy supply chain. This thesis aims to fill this knowledge gap by identifying the current sustainability practices of the meat and dairy processors and comparing them to society’s expectations in order to identify potential areas of improvement. Text mining of sustainability reports and web content was used to ascertain the current practices and content analysis of websites was used to identify the current expectations of society. Interviews with industry were used to determine the applicability and feasibility of the suggestions.

L'integrazione degli strumenti di controllo: un'indagine nel contesto sanitario italiano

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Jun 2022

Questo studio indaga l'effetto combinato di diversi strumenti di controllo sull'uso dei dati di costo da parte dei professionisti clinici con responsabilità manageriali nelle aziende sanitarie italiane. Attraverso un questionario e l'applicazione di modelli di equazioni strutturali, il lavoro esplora l'effetto della percezione dei clinici sulla qualità dei dati ricevuti tramite i sistemi informativi contabili e della formazione economico-manageriale sull'uso dei dati di costo nella gestione delle unità operative. Inoltre, indaga l'effetto di mediazione del supporto ricevuto dai controller nell'interpretazione dei dati. I risultati mostrano che incontri fra clinici e controller contribuiscono all'uso di pratiche di controllo cibernetico, e che la formazione economico-manageriale può supportare l'utilizzo dei dati e l'allineamento dei comportamenti con gli obiettivi aziendali. Emerge quindi l'importanza di integrare pratiche di controllo cibernetico con meccanismi di controllo amministrativo o culturale.

The Corporate Social Responsibility Disclosure-action Portrayal Gap: The Influence of Management Control Systems and the Association with Organisational Performance

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Jan 2023

Non-Financial Communication in Health Care Companies: A Framework for Social and Gender Reporting

Article

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Dec 2022

Social and gender reporting in the public sector has a double purpose: analyzing the social impact produced by the bodies of the public administration (PA), highlighting the reflection of their activity on women and men (gender auditing), and developing a series of policies aimed at achieving gender balance (gender budgeting), in order to provide useful indications of evolution, with respect to SDG 5: Achieve gender equality and empower all women and girls. In the field of public enterprises, a very peculiar subcategory is represented by health care companies as they carry out activities in the field of care and health in all of its direct or indirect meanings. Among the stakeholders of health care companies, the most relevant are employees and patients; social and gender reporting that focuses on them allows for the calculation of the distribution of income and expenditure between the genders and the empowerment of spending policies to eliminate discrimination. To understand the spread of non-financial reporting tools among national health facilities, an exploratory survey was conducted in the period August–September 2022. Processing the data available on the website of the Italian Ministry of Health, a database was built containing a list of 1064 health facilities spread throughout the country including public hospitals, research institutes, and accredited private clinics. Data showed that only 10% of the structures had conducted some form of social or/and gender reporting, highlighting the need to improve the spread of these kind of tools. In order to overcome the gap identified between scientific studies and corporate practices on gender and social reporting, we propose a framework for the construction of social and gender reporting in the health care sector. Based on the Italian standards, envisaged for the realization of social reporting and based on the regulatory provisions for public bodies on the reclassification of revenue and expenditure by gender, we propose a process of development for social and gender reporting that focuses on reporting the areas of intervention of health activity in which the gender dimension is equally represented.

Accountability Through Reporting: The Case of Foundations in Malaysia

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Aug 2022
Asia Pac J Manag

A non-profit entity faces multiple accountabilities as the main stakeholders are wider. Reporting is arguably one of the mechanisms to show the discharge of accountability. This paper identifies the reason for the reporting practices of foundations-non-profit entities. Using the 'accountability reporting' framework (Ebrahim, 2003a) the reporting practices were viewed from the legal, bureaucratic, and social perspectives. Four foundations with different legal structures were examined through semi-structured interviews, supported by document reviews. The study found that the reporting practices were guided by the perceived importance of the main stakeholder. In the absence of dedicated accounting standards, the reporting practices follow who the foundations perceive they should be accountable to the most. Different foundation undertook reporting practices differently. The study indicates the importance of being sensitised towards the organisational and legal structure of foundations. As NPO-including foundation is established to assist beneficiaries, this main mission should always be privileged despite different organisational/legal structures. Future research may be undertaken to itemise the reporting difference among these foundations in order to identify the trend and relationship of accountability and reporting choice.

Social Responsibility in Marketing

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This chapter described the role of social responsibility in marketing activities. Social responsibility in marketing provides products and services that help the community environmentally, socially, and economically. Social trading companies must adhere to the concept of social responsibility by engaging in activities that provide benefits to society. Additionally, discussing and describing the role of social responsibility in marketing is an important issue that needs to be investigated. The definitions of corporate social responsibility and marketing, corporate social responsibility types, CSR in marketing, and CSR implementation in marketing are critical factors described in this chapter. Additionally, the Maignan model steps are to be followed to execute corporate social responsibility from a marketing standpoint as well properly.

Measuring quality of popular annual financial reports: Features of the rewarded US reporting municipalities

Article

Jun 2022

The advent of New Public Management has brought significant changes in accountability mechanisms. In recent years, the information needs of citizens interested in financial issues and the nonfinancial aspects of public management have increased. Regulators' commitment to transparency has led US municipalities since the 1990s to adopt Popular Annual Financial Reporting (PAFR). This reporting tool, capable of transmitting information to citizens clearly and simply, has also attracted the attention of academics. Despite the presence of several studies on the subject, the quality of the information contained within the popular annual financial reports remains an unexplored topic. This study aims to fill this gap by examining a sample of 100 rewarded US municipalities. The results show a low quality of the popular annual financial reports and demonstrate a positive effect of the population size and a negative impact of the population average age on the quality of these documents.

Sustainability performance and social media: an explorative analysis

Article

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Nov 2021

Purpose This paper aims to present a deep understanding of how social media affects organisations’ sustainability performance, using environmental, social and governance (ESG) factors. Particularly, this paper assumes the existence of a causal relationship between organisations’ sustainability performance and the use of their social media profile (i.e. Twitter). Design/methodology/approach The authors used a multivariate regression with an explorative approach. Using Thomson Reuters Eikon, the authors composed a sample of 115 public EU companies with a headquarter in Europe operating in the “energy” and “utilities” sectors. The authors collected ESG-related, financial and Twitter-related data covering the period 2016–2019. Findings The study findings emphasise the existence of a statistically significant and positive relationship between social media profiles (i.e. Twitter) and companies’ sustainability performance. Findings show that ESG-oriented companies use their Twitter profile more as a tool for achieving a higher level of legitimation rather than for managing their sustainability strategy and related performance. Therefore, social media contribute more to the construction of companies’ CSR identity than the management of analytic aspects of sustainability performance. The longevity of companies’ profiles is the variable mostly showing a causal relationship not only with the general measure of companies’ sustainability performance but also with its pillars and sub-pillars. Originality/value This research is original in showing academics, practitioners and policymakers results on the impact of different modalities of interaction (retweets, replies, likes and quotes) between organisations and stakeholders by using social media on sustainability performance.

How legitimate are the environmental sustainability claims of luxury conglomerates?

Article

Jan 2021

Purpose By responding to scholarly calls, this study examines the environmental reports of LVMH and Kering. The study extends legitimacy theory to ascertain the credibility of the aforementioned luxury conglomerates' commitment to environmental sustainability. Design/methodology/approach A corpus-assisted discourse analysis centred upon the Global Reporting Initiative (GRI) guidelines is used to examine the environmental disclosures of LVMH and Kering. Findings The findings show inconsistencies due to the lack of brand-level reporting and reporting quality falls short of comparable sustainability reporting within each conglomerate and with one another. Selective and unbalanced reporting along with symbolic management undermines the legitimacy of sustainability efforts by LVMH and Kering. Originality/value Despite the increased attention paid to sustainable luxury, few studies critically analyse how luxury brands formally report on sustainability.

Non-financial reporting by an international corporation in the light of new mandatory regulations

Article

Full-text available

Oct 2020

Purpose: Directive 2014/95/EU gave the EU Member States a certain flexibility when transposing it into national law. Each Member State could, therefore, decide to introduce regulations of varying degrees of stringency. Thus, the purpose of the article is: 1) to indicate the main differences in the implementation of the Directive and the national provisions in countries selected for the study; 2) to determine and compare the range of non-financial indicators published by branches of an international corporation that operates in the selected countries, after the introduction of changes to the reports; 3) to determine differences in the reporting of non-financial ratios existing between entities operating within one capital group in the EU and outside of it. Methodology/approach: Comparative analysis and content analysis were used to achieve the objectives of the article. Findings: The results suggest that countries should adopt into their national laws various items, including the definition of a large entity that is required to make non-financial disclosures, the need for external verification of this type of information, and the adoption of sanctions for failing to publish such information. The content analysis of individual branches’ non-financial reports also revealed a wide range of non-financial indicators. What is more, significant differ-ences were found between the scope of the non-financial indicators published by the capital group and those of its subsidiaries. Originality/value: To date, little research has been done on the impact of this regulation on the practice of non-financial reporting. Our research, therefore, expands the knowledge on the subject, despite the fact it does not cover a large number of enterprises. It constitutes a new approach to non-financial disclosure analysis since the study covers non-financial reports of a capital group and its subsidiaries that operate in different countries.

Contemporary Challenges in Public Sector Reporting

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May 2020

Public sector accounting scholarship has witnessed enormous developments over the last decades. One area of scholarship is public sector accountability and public service accounting and reporting. Accountability in the public sector is a different, complex, chameleon-like and multifaced concept, encompassing several dimensions. With multiple stakeholders, the public sector requires a broader set of accountability forms, which goes beyond the scope of financial aspects, to include political, public, managerial, bureaucratic, professional, and personal accountability. In contemporary times the public sector needs to consider accounting and reporting on global and critical issues like climate change, sustainability, modern-day slavery, social inequality, taxation avoidance, biodiversity and ecological accounts. This chapter provides an overview of several developments in the past decades and reviews seven reporting frameworks that have been used for public sector reporting.

Barriers to implementing a social license to operate in mining communities: A case study of peri-urban South Africa

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Jan 2020

This article interrogates the concept of the “social licence to operate” – defined here as “community acceptance of mining” – from a community perspective. It focuses on the case of South Africa’s peri-urban areas, which are both interesting and unique due to the country’s transition from apartheid to democracy, and the impact this has on company-community relations, and on the social licence. Most people who reside in communities in peri-urban South Africa do not own land and struggled against apartheid. They continue to live marginal lives, with limited economic opportunities. These communities are not governed by traditional authorities or chiefs so defining community leadership and formulating its legitimacy is a challenge. Through an interrogation of the social licence phenomenon, using legitimacy theory as an underpinning framework, we identify several factors which impact on the community’s ability to “grant” a social licence. We conclude that if conditions relating to these factors are unfavourable, the requirements for a social licence cannot be met. We focus specifically on the “leadership legitimacy” gap within communities, and the impact that this has had on communities’ ability to influence the social licence outcome. Through an in-depth exploration of the phenomenon from the perspective of two mining communities, we introduce a new theoretical component referred to as “community legitimacy”, which better represents the reality experienced within, and amongst, communities.

Designing a Data Visualization Dashboard for Managing the Sustainability Communication of Healthcare Organizations on Facebook

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Nov 2018

Healthcare organizations are being increasingly requested to publicize their sustainability efforts on digital environments and social media, in part because previously passive patients are now becoming active customers. This paper investigates how leading healthcare organizations are using Facebook to communicate their sustainability, in terms of their focus on different components of the 3Ps (people, profit, planet) and interactive communication strategies used on social media. A content analysis was made of the Facebook posts (n = 6145) of healthcare organizations in the Forbes Global 2000 (2017 annual ranking) from 2015 to mid-2018. Our findings show that the social component of sustainability prevails over environmental and economic issues, although it does not seem to generate increased consumer engagement (in terms of users’ likes, comments, reactions, etc.). A data visualization dashboard was developed to help managers in benchmarking competitors and assessing how they can increase response rates and public engagement on social media, thus encouraging the active participation of users. The study also provides useful insights for communication managers in identifying how to use deliberative tools to develop consumer relationships on social media and aligning companies and consumers regarding shared sustainability themes.

Does pressure-induced partnership really matter? Empirical modelling of stakeholder pressure and firms’ CSR attitude

Article

Sep 2018

Michael Odei Erdiaw-kwasie

Purpose The purpose of this paper is to show whether pressure-induced partnerships do impact the link between stakeholder pressure and firms’ CSR attitude. The veracity that stakeholder pressure and firms social attitude issues have been extensively covered in three interrelated literature, namely, corporate social responsibility (CSR), partnership and stakeholder management, is widely recognised. However, to date, efforts to investigate conditions under which partnerships initiated through stakeholder pressures help to impact firms’ CSR attitudes either as per their request or in a more balanced way, have rarely been explored. Design/methodology/approach Empirically, this paper adopts quantitative research approach (hierarchical multiple regression) to build a case that pressure-induced partnership is one such key driver that shapes firms’ CSR attitude. Findings Study results show that firms’ CSR attitude can only add value if these activities and firm reputation are aligned with meaningful pressure-induced partnerships. Originality/value The study’s methodological approach (hierarchical multiple regression) stands tall in studies that explore drivers that shape firms’ CSR attitude. The paper concludes with theoretical and managerial implications for future studies.

What is the Added Value of the Municipal Budget Explorers?

Conference Paper

Sep 2017

The purpose of this paper is to map the usage of the budget explorers in 72 former district towns, to compare them to the Monitor and evaluate their additional value regarding the information they provide. Budget explorers are provided by the majority, i.e., 62.5%, of the former district towns and they provide, comparing to the budget explorer Monitor provided by the Ministry of Finance additional information in three areas: (1) approved budget for 2017 was available several months earlier and information about its execution is updated more frequently, (2) more detailed information in most of the towns at least in one of these areas: organizational classification of revenue and expenditure (58%), information on individual investments over multi-year period (22%), programs (58%) or even individual invoices (22%) and (3) in case of statutory cities divided into independent districts the budget explorers provide information of all the individual districts. On the other hand, the municipal budget explorers rarely allow to download the data for further analysis and cover less than 7 years-these are thus the major advantages of the Monitor.

The role of social report for performance measurement of museums: an Italian survey from the web

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The role of Social Report for performance measurement of museums: an Italian survey from the web

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Jan 2017

Successful changes in management accounting systems: A healthcare case study

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Jun 2016
Account Forum

This paper explores how a change in the management accounting systems (MAS) of healthcare organisations was implemented in a manner acceptable to those involved. The study employed a longitudinal case study of a university hospital in southern Italy, and was informed by Broadbent and Laughlin's Middle Range Theory (MRT). The findings revealed that the change in the MAS was successful due to the involvement of professionals in the ongoing process of change. This involvement reduced their natural tendency to resist, and increased the commitment of the various groups of professionals to the new business culture.

Appropriateness and Use of Performance Information in the Budgeting Process of Municipalities: Some Experiences from Germany and Italy

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Mar 2016
Publ Perform Manag Rev

This article contributes to the debate on the use of performance information in the context of public sector performance management. Based on case studies, the authors analyze the appropriateness of the performance information provided in the newly established performance budgets of municipalities in Germany and Italy. They also examine the interest of politicians and senior managers in using such information for decision-making and monitoring within the municipal budget cycle. They find that the use of performance information is generally quite modest, and that the interest of different local actors varies to a great extent. Politicians are generally less interested in such information than top managers, particularly chief financial officers. The results are discussed by applying a theoretical framework based on institutional and legitimacy theories, and are compared with the literature on performance information use.

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Mar 2016
Account Audit Account J

Purpose: We analyse changes in community disclosures by listed companies in Mauritius. Design/methodology/approach: We carried out a quantitative and qualitative assessment of annual report disclosures over the period 2004-2010. In particular, we consider the influence of a corporate governance code and a government intervention to first persuade and subsequently mandate corporate social responsibility investment (known as a ‘CSR Levy’). Findings: From a predominantly limited and neutral form of communication, narratives of community involvement morph into assertive and rhetorical statements, emphasising commitment, permanency and an intimate connection to the community, and a re-organisation of activities and priorities which seek to portray structure and order in the way companies deliver community interventions. Informed by Gray et al.’s (1995) neo-pluralist framework and documentary evidence pertaining to the country’s social, political and economic context, we relate the change in disclosures to the use of corporate impression management techniques with a view to maintain legitimacy and to counter the predominant public narrative on the insufficient extent of community involvement by local companies. Research limitations/implications: We find that community disclosures are not only legitimating mechanisms driven by international pressures but are also the result of local tensions and expectations. Originality/value: This study provides evidence on forms of ‘social’ - as opposed to environmental - disclosures. Furthermore, it examines a unique setting where a government enacted a legally-binding regime for greater corporate social involvement

Le processus de légitimation par la RSE : Une analyse multiméthodes du noyau stratégique des Caisses d’Épargne

Article

Nov 2022

Suite à une analyse de contenu réalisée sur 50 entretiens semi-directifs conduits auprès de participants du noyau stratégique des Caisses d’Épargne, plusieurs traitements, à la fois qualitatif et quantitatif, permettent de comprendre les liens unissant légitimation et Responsabilité Sociale de l’Entreprise. Les résultats indiquent que la RSE est avant tout mobilisée dans un processus de légitimation des Caisses d’Épargne. Les différents types de légitimité – pragmatique, moral, cognitif -sont associés à différents types d’intégration de la RSE – dans les activités et la gouvernance des Caisses d’Épargne.

Outcome-based Performance Budgeting in German and Dutch Local Government*

Chapter

Jan 2021

Annual reporting by social enterprise organizations: “legitimacy surplus” or reporting deficit?

Article

Aug 2020
Account Audit Account J

Drawing on an accountability framework developed for social enterprise organizations (SEOs), this paper examines the annual report disclosure practices of SEOs in the United Kingdom in order to investigate the types of accountability disclosed by SEOs. In response to calls for research to better understand accountability in new organizational contexts, this paper makes two contributions: firstly, by extending prior accountability research in the NFP sector to consider organizational hybrids, it raises questions about organizational accountability and how it is discharged in situations where an organization operates as a business and yet is accountable for its social mission; secondly, assuming these organizations are driven by their business and social logics, the findings suggest that SEO accountability disclosure practices are inconsistent with the social objectives on which they are based.

Influential Variables of Sustainability Disclosures by Spanish Public Hospitals

Article

May 2020
Publ Perform Manag Rev

This paper explores whether the extent of sustainability information disclosed by Spanish public hospitals is affected by internal characteristics of such organizations as well as by political ideology and socioeconomic variables. We used the institutional, stakeholder, and legitimacy theories to explain different levels of sustainability disclosures. To accomplish our goal, we collected data through content analysis of the institutional websites of all Spanish public hospitals registered in the 2016 National Database of Hospitals, corporate annual reports, and sustainability reports published by Spanish hospitals. The results show that the most influential variables associated with the extent of sustainability information disclosed by Spanish public hospitals are the hospitals’ size, political ideology, and reputation as well as the access they have to the Internet. According to the legitimacy theory, the Spanish public universities that have revealed more sustainability information are more visible and may be perceived to have greater legitimacy in society. However, the extent of sustainability information disclosed by Spanish public hospitals is far from being adequate. According to the institutional theory, this is explained by the lack of coercive and normative forces.

No Longer Only Numbers: An Exploratory Analysis of the Visual Turn in Reporting of Public Sector Organisations

Chapter

May 2020

Ruggiero Pasquale

Organisations, especially in the public sector, are developing reporting tools able to communicate different dimensions of performance to meet an increasing demand for accountability. Scholars and practitioners have focused mainly on the financial figures and narratives contained in these reports; there has been much less interest in their visual dimension. This chapter focuses on the visual dimension of reports, specifically the use of images in the reports of public sector organisations (PSOs) for evaluating their potential contribution to accountability processes by conveying information difficult to translate in numbers. To this end, adopting a Barthesian perspective, a case study has been developed by using the images contained in the sustainability reports published between 2003 and 2017 by a PSO operating in the multi-utility sector.

Interrogating the legitimacy to enter into a social licence in the mining industry in South Africa: a community perspective

Thesis

Full-text available

Jul 2018

Noma Nyembo

Discussions about the significance of the social license phenomenon have been increasing over the last two decades, yet the trend has been to approach it from a company perspective. Over the same period, there have been increasing challenges in mine-community relations, and company interventions have not led to the desired outcomes. A credible process for achieving a social licence within a complex and historically sensitive context is currently not in place, which has perpetuated the feelings of dissatisfaction and has led to serious conflict between mining communities and companies. The literature revealed a lack of clarity on the role of the community in the process, necessitating an interrogation of the phenomenon from a community perspective. Legitimacy theory was used as the basis of the study. The multi-dimensional and dynamic nature of the study necessitated the use of qualitative methods and an inductive approach, based upon a case study within two South African mining communities. The results of the study demonstrated that communities are limited in influencing the social licence, and this highlighted the need to incorporate community specific legitimacy, which more closely reflects the reality within communities (their diversity, informality, broad representation, and dynamic nature). The lack of agreement (emanating from communities, government and industry) on legitimate community leadership significantly also impacts on the social licence process. Communities are unable to articulate their expectations to mining companies, and the requirements for a social licence are not being satisfied. The study also highlighted the deep and complex nature of discourse transition, and that mining companies must concentrate on understanding context and produce context-specific interventions. This research contributes by extending the theorisation of legitimacy, as it relates to the social licence, by adding the concept of community legitimacy and proposes a community leadership framework, to incorporate this aspect. A conceptual model, which integrates the context-specific nuances, is therefore proposed for sectors which are dependent upon achieving accord with stakeholders via a social contract, and are experiencing increasing complexity and social tensions relating to their operations. Such a framework would facilitate engagement through representative structures and result in a more robust social licence outcome.

Accounting to ensure healthy lives. Critical perspective from the Italian National Healthcare System

Article

Feb 2020
Corp Govern

This paper aims at contributing to the debate regarding the implementation of SDGs’ reporting systems by public entities. For this purpose, we analysed the Italian National Healthcare Systems (INHS) to highlight how, even if in presence of best practices, Public Managers are not oriented to adopt these tools to engage with stakeholders. The present study evaluates the degree of contribution to SDG3 by INHS through the adoption of the theoretical framework proposed by Beck et al. (2010). Specifically, we assess the degree of contribution to this goal using an interpretive content analysis that combines the theoretical framework, as shown above, with the 13 targets that composed the SDG3. For our purposes, we analyse all INHS’s website to evaluate the presence/absence of social reports produced in the periods between 2015-2018. The study finds that the INHS even if in the presence of a great contribution to the achievement of SDG3 is characterized by a low degree of attention paid by public managers to social reporting. In fact, only 12,21% of INHS’s entities disclosed at least one or more social reports during the analysed period. Moreover, our results denote how the approach of INHS’s entities to social reporting is different in term of information’s quality and quantity. The absence of a common reporting standard imposed to adopt an interpretative content analysis. In this sense, we adopted a theoretical framework to evaluate the real contribution paid by entities to topics related to SDG3. The paper is of use to public managers operating in countries characterized by a high level of contribution to SDGs. Specifically, our results suggest how the adoption of reporting tools could impact positively in term of stakeholder’s awareness to SDG themes. This paper contributes to the understanding of the central role covered by academics, practitioners and public sectors to SDGs through the adoption of social reporting tools.

Corporate Social Responsibility and Sustainability Initiatives of Multinational Hotel Corporations

Chapter

Jan 2020

Multinational hotel corporations participating actively in international business developments have become aware of the significance of disclosures on Corporate Social Responsibilities (CSR) and Sustainability issues. Such development is driven by the external stakeholders and endorsed by the internal ones. Financial regulators around the world have appeared to embrace the international trend of disclosures about CSR and Sustainability by publicly listed corporations. Through case studies of major multinational hotel corporations operating in Asia and the West, this study examines the emerging emphases of disclosures on CSR and Sustainability matters as a global trend—including public relation management (PRMs), enterprise risk management (ERMs), and integrated innovation management (IIMs). The results showed different aspects of CSR and sustainability practices among multinational hotel corporations worldwide. Western hotel corporations indicate an emphasis on IIMs with global measurement and standard such as GRI standard and ISO14001 certification. In the meantime, Asian hotel corporations have diverse CSR and sustainability initiatives in terms of PRMs (e.g., staff development, staff remuneration and welfare, and good stewards of the environment) and ERMs (e.g., operational risks management, use of solar energy, and new energy conservation) approaches, but low implementation on IIMs. Various aspects of CSR and sustainability initiatives can be reinforced to enhance multinational hotel corporations’ sustainability.

Governance structures, voluntary disclosures and public accountability: The case of UK Higher Education Institutions

Article

Full-text available

Jan 2017
Account Audit Account J

Purpose: We investigate the extent of voluntary disclosures in UK higher education institutions’ (HEIs) annual reports and examine whether internal governance structures influence disclosure in the period following major reform and funding constraints. Design/methodology/approach: We adopt a modified version of Coy and Dixon’s (2004) public accountability index, referred to in this paper as a public accountability and transparency index (PATI), to measure the extent of voluntary disclosures in 130 UK HEIs’ annual reports. Informed by a multi-theoretical framework drawn from public accountability, legitimacy, resource dependence and stakeholder perspectives, we propose that the characteristics of governing and executive structures in UK universities influence the extent of their voluntary disclosures. Findings: We find a large degree of variability in the level of voluntary disclosures by universities and an overall relatively low level of PATI (44%), particularly with regards to the disclosure of teaching/research outcomes. We also find that audit committee quality, governing board diversity, governor independence, and the presence of a governance committee are associated with the level of disclosure. Finally, we find that the interaction between executive team characteristics and governance variables enhances the level of voluntary disclosures, thereby providing support for the continued relevance of a ‘shared’ leadership in the HEIs’ sector towards enhancing accountability and transparency in HEIs. Research limitations/implications: In spite of significant funding cuts, regulatory reforms and competitive challenges, the level of voluntary disclosure by UK HEIs remains low. Whilst the role of selected governance mechanisms and ‘shared leadership’ in improving disclosure, is asserted, the varying level and selective basis of the disclosures across the surveyed HEIs suggest that the public accountability motive is weaker relative to the other motives underpinned by stakeholder, legitimacy and resource dependence perspectives. Originality/value: This is the first study which explores the association between HEI governance structures, managerial characteristics and the level of disclosure in UK HEIs.

Politics and Public Services: Looking Beyond Economic Rationality and Public Value

Chapter

Nov 2014

PurposeTo understand whether new public management and public value theory are sufficient to guide the strategic behaviours adopted by public sector organizations for their service delivery companies. Design/methodology/approachThis article uses a longitudinal case study of a joint stock company running an airport service in Tuscany. FindingsPublic value theory should be further developed to guide managerial behaviours in a very complex decision-making environment. Research limitationsOnly one case study is used so results cannot be generalized in a proper statistical way. Practical implicationsPublic managers could learn the usefulness of managerial theories for their decision-making. Social implicationsTheories aimed at providing managers with insights into decisions made in complex situations should be tested in the real world before being accepted or refused. Originality/valueThis article analyzes a case study operating under and applying the concepts proposed by new public management and public value theory. It therefore offers insights on their applicability, shortcomings and usefulness for decision-making.

Exploring the role of audit committees in a non-profit setting: the case of UK higher education institutions

Conference Paper

Full-text available

Dec 2014

Annual report disclosures in UK universities: the influence of governing boards

Conference Paper

Full-text available

May 2014

The international higher educational institutions (HEIs) environment has experienced rapid changes and/or reforms over the past decades. Specifically, the HE sector has been characterised by increasing student numbers, declining government funding, but tighter external regulation, increasing competition, and greater accountability through increased ‘managerialism’, ‘commoditisation’, ‘commercialisation’ and ‘corporatisation’ of academics and HEIs. These changes have brought to the core the issue of sound financial management through good internal governance, increased public accountability and transparency, and stronger performance within HEIs. This paper, therefore, investigates why and how HEIs internal governance structures might influence their voluntary public accountability and transparency disclosures (PADs). Using a 2012 cross-sectional sample of 130 UK HEIs, we find that audit committee quality, governing board diversity, independent or lay governors, and the presence of a corporate governance committee impact positively in PADs. By contrast, we do not find any evidence that audit firm size, governing board size, and the frequency of governing board meetings have any significant effect on PADs. The central tenor of our findings remains unchanged across a number of econometric models that sufficiently account for different kinds of endogeneities, as well as alternative internal governance mechanisms and PADs measures. Our results are generally in line with the predictions of our multi-theoretical framework that incorporates insights from agency, institutional, legitimacy, public accountability/stewardship, resources dependence, and stakeholder theories

Governance structures, voluntary disclosures and public accountability: The case of UK higher education institutions

Article

Full-text available

Sep 2015
Account Audit Account J

Purpose The purpose of this paper is to investigate the extent of voluntary disclosures in UK higher education institutions’ (HEIs) annual reports and examine whether internal governance structures influence disclosure in the period following major reform and funding constraints. Design/methodology/approach The authors adopt a modified version of Coy and Dixon’s (2004) public accountability index, referred to in this paper as a public accountability and transparency index (PATI), to measure the extent of voluntary disclosures in 130 UK HEIs’ annual reports. Informed by a multi-theoretical framework drawn from public accountability, legitimacy, resource dependence and stakeholder perspectives, the authors propose that the characteristics of governing and executive structures in UK universities influence the extent of their voluntary disclosures. Findings The authors find a large degree of variability in the level of voluntary disclosures by universities and an overall relatively low level of PATI (44 per cent), particularly with regards to the disclosure of teaching/research outcomes. The authors also find that audit committee quality, governing board diversity, governor independence and the presence of a governance committee are associated with the level of disclosure. Finally, the authors find that the interaction between executive team characteristics and governance variables enhances the level of voluntary disclosures, thereby providing support for the continued relevance of a “shared” leadership in the HEIs’ sector towards enhancing accountability and transparency in HEIs. Research limitations/implications In spite of significant funding cuts, regulatory reforms and competitive challenges, the level of voluntary disclosure by UK HEIs remains low. Whilst the role of selected governance mechanisms and “shared leadership” in improving disclosure, is asserted, the varying level and selective basis of the disclosures across the surveyed HEIs suggest that the public accountability motive is weaker relative to the other motives underpinned by stakeholder, legitimacy and resource dependence perspectives. Originality/value This is the first study which explores the association between HEI governance structures, managerial characteristics and the level of disclosure in UK HEIs.

The literature review: State of the state of the art

Article

Dec 2013

The case of HERA

Article

Nov 2013

In the raising complexity of the environment within which companies have to currently operate, the drawing up of integrated reporting seems to be one of the most challenging and demanding tasks for any company, which have to deal both with an increasing number of powerful stakeholders and provide its managers with increasingly complex and useful information. The present chapter analyses the approach and the experience of the HERA Group. We will outline the business features, its evolution since operations began and the similarities and differences of the HERA Sustainability Report with the Integrated Reporting framework. This case study is an important and informative example of how integrated reporting is a useful tool for governing particular kind of firm such as HERA. It is owned by both private investors and public administrations whilst operating in the public services sector. © 2013 Springer International Publishing Switzerland. All rights reserved.

Non-financial information: State of the art and research perspectives based on a bibliometric study

Article

Nov 2015

L’information non financière : état de l’art et perspectives de recherche fondées sur une étude bibliométrique We conduct a bibliometric analysis of academic articles published on the topic of non-financial information (NFI). This analysis covers 787 articles published in 53 journals over the timespan 1973 to 2013. We examine several important questions about the state of the art of academic research on NFI: How is NFI defined in the literature? Can NFI be precisely defined? How has interest in NFI evolved over time in the academic literature? What are the main topics covered by NFI research? What are the main methodologies used by researchers? To what extent are studies country-specific? We find that many articles do not define the concept of NFI but refer to underlying concepts such as social, environmental, human capital or corporate social responsibility (CSR) reporting. We document that academic research on NFI reached a certain degree of maturity around the late 1990s / early 2000s, a time when several new specialized journals were created that now capture an important share of the market. We identify 10 topics covered by research on NFI and show that the most frequently-studied topic in NFI research is CSR reporting. We also discover that the volume of research concerning auditing of NFI is growing, whereas management accounting/control research on NFI is limited. We find that the growth in NFI research is fueled mainly by articles using archival data (quantitative or qualitative) and essay methodologies. Finally, we suggest directions for future research.

Social and Environmental Disclosure and Corporate Characteristics: A Research Note and Extension

Article

Full-text available

Apr 2001
J BUS FINAN ACCOUNT

This paper is concerned with the attempts to explain the disclosure of social and environmental information in the annual reports of large companies by reference to observable characteristics of those companies. An extensive literature has sought to establish whether variables such as corporate size, profit and industry segments can explain corporations' disclosure practices. The results from that predominantly North American and Australasian literature are largely inconclusive. This paper provides an extension of that literature by considering a more disaggregated specification of social and environmental disclosure and by employing a detailed time-series data set. By so doing, the paper tests two possible explanations for the inconclusiveness of prior research: namely that any relationships between corporate characteristics and disclosure are dependent upon the type of disclosure and that any such relationships are not stable through time. The results provide support for these explanations as sufficient, if not necessary, conditions for explaining the inconsistency in prior results. Copyright Blackwell Publishers Ltd 2001.

Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review, 20, 571-611

Article

Full-text available

Jul 1995
ACAD MANAGE REV

Mark Suchman

This article synthesizes the large but diverse literature on organizational legitimacy, highlighting similarities and disparities among the leading strategic and institutional approaches. The analysis identifies three primary forms of legitimacy: pragmatic, based on audience self-interest; moral, based on normative approval; and cognitive, based on comprehensibility and taken-for-grantedness. The article then examines strategies for gaining, maintaining, and repairing legitimacy of each type, suggesting both the promises and the pitfalls of such instrumental manipulations.

Data in Search of a Theory: A Critical Examination of the Relationships Among Social Performance, Social Disclosure, and Economic Performance of U.S. Firms

Article

Full-text available

Jul 1985
ACAD MANAGE REV

Arieh A Ullmann

Inconsistent findings have resulted from studies of the relationships among social disclosure, social performance, and economic performance of U.S. corporations. No clear tendency can be detected. The main reasons for these inconsistencies are: (a) a lack in theory, (b) inappropriate definition of key terms, and (c) deficiencies in the empirical data bases currently available. Suggestions are made as to how this situation can be improved.

Understanding the Nature of Stakeholder Relationships: An Empirical Examination of a Conflict Situation

Article

Full-text available

Aug 2012

This article examines stakeholder relationships in a conflict situation. The focus of analysis is on how to understand stakeholder relationships as both ethical and strategic, and further, how the interests of different stakeholders become justified. To describe stakeholder relationships, we use media texts reporting on the case of a foreign investment project. The description shows how relationships evolve and how they constitute different episodes related to the conflict. We address the episodes by analysing stakeholder relationships and their salience. Furthermore, we examine how different stakeholder interests are justified in relation to the conflict. By providing a rich detailed qualitative analysis, we elaborate on the strategic and ethical nature of stakeholder relationships.

How Do European SME Owner–Managers Make Sense of ‘Stakeholder Management’?: Insights from a Cross-National Study

Article

Full-text available

Aug 2012

The vast majority of empirical research on stakeholder management has traditionally focused on multinational corporations. Only in recent years, scholars have begun to pay attention to the stakeholder management concept in relation to small- and medium-sized enterprises (SMEs). The few existing studies in this area, however, discuss SMEs as a context free category or remain focused on single country analysis. This cross-national empirical research investigates SME owner–managers’ perceptions of stakeholder management in six European countries. The comparative analysis is followed by a discussion of how institutional, cultural and linguistic contexts can influence owner–managers’ sensemaking of stakeholder management. Our study questions the universality of specific management terms and proposes that more attention should be paid to the institutional, cultural and linguistic environments that shape economic activity in different parts of Europe.

Securing organizational legitimacy: An experimental decision case examining the impact of environmental disclosures

Article

Full-text available

Aug 2002
Account Audit Account J

This paper explores the role that environmental disclosures might play in producing a legitimating effect on investors within the context of the chemical industry. By way of an experimental decision case it examines effects of negative, and the offsetting effects of positive, environmental disclosures surrounding chemical firms’ liabilities for toxic waste site liabilities. The paper outlines the theoretical bases for the process of organizational legitimation, and sets the decision experiment in a detailed historical analysis of the toxic waste problems of the 1970s that led to the enactment of legislation requiring clean up and imposing significant liabilities on chemical firms. The results from the decision experiment, which indicate that under some circumstances positive disclosures can restore or repair an organization’s legitimacy, are discussed in the context of the earlier theoretical and historical analysis.

A comparative study of contents of corporate social responsibility reports of UK companies

Article

Full-text available

Aug 2004
Manag Environ Qual Int J

The last few decades have seen an increase in awareness on the part of corporate entities in Western democracies that they are morally obliged to give something back to society. An entity that fails to make a positive contribution to society will be perceived as being socially irresponsible! To demonstrate that they “care” about the people and environment they operate in, organisations have taken different courses of action. The corporate social responsibility (CSR) reports which have now become an annual report in addition to the traditional annual financial reports is one of the vehicles used to demonstrate how caring they have been over the financial period that has just ended and how they intend to continue to be even more so in future periods. The study looks at CSR reports of different companies across different industries in the UK. Notes that there are two distinct practices adopted when reporting on CSR matters. Some companies issue separate reports for their CSR activities whilst others devote a section in their annual reports for providing information on these activities. Also notes that all companies in the survey recognise the enormous benefits that can emanate from making known their CSR policies and activities. It can be revealed from the study that UK CSR reports disclose information about the contributions an entity has made during the year that has just ended in four main perspectives, which are environment, community, marketplace and workplace.

Social Reporting in European Healthcare Organizations: an Analysis of Practices

Conference Paper

Full-text available

Jul 2001

Emidia Vagnoni

Abstract During the nineties there were major public sector reforms in many Western European countries aiming at the introduction of a “managerial culture”. Thus, a demand for different information was created and this has meant that public organizations have become,more involved in reporting information other than just the “financial”. Health care organizations, as public entities, have, of course, been included in this reform process. Using the method of simple content analysis, this paper reports on and analyses a sample of social reporting practices in Belgian, French and Italian health care organizations. Specifically, it seeks to highlight the similarities and differences in disclosure patterns between,the countries. Thus section 4 and 5 present the research method and the results of the analysis about social report’s disclosures, indicators measure and international comparison. Finally, some conclusions are provided in the last section. Key words: Italian, French and Belgium health care organization, social reporting

Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts

Article

Full-text available

Oct 1997
ACAD MANAGE REV

Stakeholder theory has been a popular heuristic for describing the management environment for years, but it has not attained full theoretical status. Our aim in this article is to contribute to a theory of stakeholder identification and salience based on stakeholders possessing one or more of three relationship attributes: power, legitimacy, and urgency. By combining these attributes, we generate a typology of stakeholders, propositions concerning their salience to managers of the firm, and research and management implications.

Health Management Performance: A Review of Measures and Indicators

Article

Full-text available

Dec 1995
Account Audit Account J

A bewildering variety of performance measures and indicators in health management is evident in the literature and in practice. Reviews measures useful for health management performance accountability, and expands on the traditional notion of health performance measures to incorporate nominal and ordinal measures. The research is performed in the interest of stimulating discussion in the public domain and with the intent of expanding current notions of the term “performance indicator”. Develops a comprehensive framework from measurement and accountability theory, and the medical management, accounting and accountability literatures are reviewed. Highlights the importance of using non-ratio measures to capture outcomes, structure and processes influenced by management; and suggests that disclosures which include measures from all elements of the framework would most closely account for management activity.

Managing Organizational Legitimacy in the California Cattle Industry: The Construction and Effectiveness of Verbal Accounts

Article

Full-text available

Mar 1994
ADMIN SCI QUART

Kimberly Elsbach

ABSTRACT Through a series of three inductive and deductive studies, I describe how spokespersons from the California cattle industry constructed and effectively used verbal accounts to manage perceptions of organizational legitimacy following controversial events. Findings of Study 1 suggest that organizational accounts are constructed by linking two forms of accounts: acknowledgments,or denials, with two contents of accounts: references to institutionalor technical characteristics of the organization. Findings of Studies 2 and 3 suggest that, in protecting organizational legitimacy (1) acknowledgments are more effective than denials, (2) references to institutionalized characteristics are more effective than references to technical characteristics,and (3) accounts combining acknowledgments,with references to institutionalized characteristics are more effective than accounts with only one of these components. Effectiveness appears to depend on audiences' perceptions of the controversy, expertise in the area of controversy, and expectations of organizational responses. Overall, findings suggest that concepts from institutional and impression management theories may be combined,to improve our understanding of organizational accounts and thus enhance models of symbolic management. • 3

Taking a Long View on What We Now Know About Social and Environmental Accountability and Reporting 1

Article

Full-text available

Dec 2007

Rob Gray

Sustainability and social responsibility appear to be occupying a place of increasing importance in the discourse surrounding business and organisation. As this discourse gains acceptance organisations seek for ways to measure and manage their interactions in the field. Simultaneously, societal concerns for the way in which organisations represent themselves with respect to social responsibility and sustainability stimulate a need for wider accountability. This essay joins a steadily growing trickle of papers which attempt to articulate and make sense of social accounting, accountability and reporting and, in so doing, offer suggestions for future directions in research, teaching and/or practice. The primary purpose of this paper is to offer a view of developments in social accounting in the last decade or so and to emphasise something I fear we are in danger of losing – namely that sense of the importance of social accounting and the considerable critical potential of the social accounting project. The paper provides a brief introduction to the growth in the social accounting literature; a typology of research approaches to the area; and a polemic on the crucial potential importance of social accounting. With this background, the essay then takes a broad review of the social accounting literature and seeks to offer some contentious perceptions on that research in the hope of stimulating debate.

Changes in social and environmental reporting practices in an emerging economy (2004–2007): Exploring the relevance of stakeholder and legitimacy theories

Article

Full-text available

Sep 2011

We examine social and environmental reporting (SER) practices of listed companies in the island economy of Mauritius. Based on a content analysis of annual reports, quantitative and qualitative changes in SER were analyzed in light of recent developments in corporate governance and with regard to the prevailing social and political contexts of this emerging economy. We find a significant but selective increase in the volume and quality of SER over the period under review (2004–2007). We rely on Suchman's (1995) conceptualizations of legitimacy to argue that the changes in SER are related to a need for companies to demonstrate an affiliation to pro-social objectives (moral legitimacy) and, to a lesser extent, are motivated by the need to manage specific stakeholders (pragmatic legitimacy). More specifically, the increase in ethical disclosures reflects an attempt at gaining procedural legitimacy in response to criticisms of corruption and unfair/unethical business practices. Furthermore, the increase in social disclosures can primarily be seen as a mechanism to gain consequential legitimacy in response to concerns that local companies are not sufficiently contributing to the country's social development. We suggest that future empirical research should devote more attention to the specific characteristics of emerging economies (such as levels of corruption and unethical business practices and the level of corporate governance) and examine whether these can explain patterns of corporate SER in a given national context or on a cross-country basis.

Struggling with the praxis of social accounting

Article

Full-text available

Aug 1997
Account Audit Account J

We gratefully acknowledge the assistance provided by many individuals and organizations in developing this paper. We are grateful for the financial support received from the ESRC, The Carnegie Trust and the ACCA who have funded ‐ or are continuing to fund ‐ elements of this research project. We wish to express out thanks to the staff at Traidcraft plc and Traidcraft Exchange (especially Murdoch Gatwood) who have been so supportive and patient throughout the (continuing) research process. Jan Bebbington, David Collison, Emily Dick‐Forde, Reza Kouhy, Ken McPhail and Noel Tagoe of The University of Dundee, and Sue Llewellyn of Edinburgh University were especially helpful in helping us to try to clarify the theoretical issues raised by the paper. We also acknowledge the very helpful comments on earlier drafts of this paper from Nabil Baydoun, Jan Bebbington, Jane Broadbent, Penny Ciancanelli, John Grinyer, Jim Haslam, John Innes, Richard Laughlin, Alasdair Lonie, Peter Raynard and colleagues who attended presentations at the CSEAR Summer School and at the Universities of Glasgow and Dundee.

Business Ethics and Stakeholder Analysis

Article

Jan 1991

Kenneth E. Goodpaster

A stakeholder framework for analysing and evaluating corporate social performance

Article

Jan 1995

B.E. Clarkson

Australian commonwealth entities: an analysis of their environmental disclosures

Article

Jan 1997
ABACUS

Focus Groups in Social Research

Book

Mar 2001

There is an increasing divergence of focus group practice between social researchers and commercial market researchers. This book addresses the key issues and practical requirements of the social researcher, namely: the kinds of social research issues for which focus groups are most and least suitable; optimum group size and composition; and the designing of focusing exercises, facilitation and appropriate analysis. The authors use examples, drawn from their own focus groups research experience, and provide exercises for further study. They address the three main components of composition, conduct and analysis in focus group research and also acknowledge the increasing impact the Internet has had on social research by covering the role and conduct of `virtual focus groups'.

Corporate social disclosure practice: A comparative international analysis

Article

Jan 1990

Bilancio sociale e aziende sanitarie: stato dell'arte e prospettive di sviluppo

Article

Jan 2005

Managing Legitimacy: Strategic and Institutional Approaches

Article

Jul 1995
ACAD MANAGE REV

Mark Suchman

This article synthesizes the large but diverse literature on organizational legitimacy, highlighting similarities and disparities among the leading strategic and institutional approaches. The analysis identifies three primary forms of legitimacy: pragmatic, based on audience self-interest; moral, based on normative approval: and cognitive, based on comprehensibility and taken-for-grantedness. The article then examines strategies for gaining, maintaining, and repairing legitimacy of each type, suggesting both the promises and the pitfalls of such instrumental manipulations.

La responsabilità sociale in sanità

Article

Jan 2005

E. Borgonovi

Strategic Management: A Stakholder Approach

Article

Jan 1984

R. Edward Freeman

Strategic Management: A Stakeholder Approach was first published in 1984 as a part of the Pitman series in Business and Public Policy. Its publication proved to be a landmark moment in the development of stakeholder theory. Widely acknowledged as a world leader in business ethics and strategic management, R. Edward Freeman’s foundational work continues to inspire scholars and students concerned with a more practical view of how business and capitalism actually work. Business can be understood as a system of how we create value for stakeholders. This worldview connects business and capitalism with ethics once and for all. On the 25th anniversary of publication, Cambridge University Press are delighted to be able to offer a new print-on-demand edition of his work to a new generation of readers.

Recent environmental disclosures in annual reports of Australian public and private sector organisations

Article

Account Forum

Corporate Social Reporting: Eight Decades of Development at US Steel

Article

Jan 1982

Robert Retired Associate Professor Hogner

Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts

Article

Oct 1997
ACAD MANAGE REV

An Investigation of the Information Content of (Certain) Social Responsibility Disclosures

Article

Oct 1978

Robert W. Ingram

Organizational Legitimacy: Social Values and Organizational Behavior

Article

Jan 1975
Pac Socio Rev

While many sociologists have noted that organizational legitimacy is important for organizational survival, legitimacy has been infrequently empirically examined. This paper presents a conceptual framework in which organizational legitimacy is defined as the congruence between the values associated with the organization and the values of its environment. Challenges to organizational legitimacy and responses to these challenges are illustrated in a discussion of the American Institute for Foreign Study. Corporate philanthropic contributions, the composition and size of boards of directors, and the content of annual reports and other organizational communications are presented as efforts on the part of organizations to achieve legitimacy. The focus on processes of organizational legitimation can be used in analyzing a variety of organizational behaviors that are components of organization-environment interaction.

Business Ethics and Stakeholder Analysis

Article

Jan 1991

Kenneth E. Goodpaster

Much has been written about stakeholder analysis as a process by which to introduce ethical values into management decision-making. This paper takes a critical look at the assumptions behind this idea, in an effort to understand better the meaning of ethical management decisions. A distinction is made between stakeholder analysis and stakeholder synthesis. The two most natural kinds of stakeholder synthesis are then defined and discussed: strategic and multi-fiduciary. Paradoxically, the former appears to yield business without ethics and the latter appears to yield ethics without business. The paper concludes by suggesting that a third approach to stakeholder thinking needs to be developed, one that avoids the paradox just mentioned and that clarifies for managers (and directors) the legitimate role of ethical considerations in decision-making. So we must think through what management should be accountable for; and how and through whom its accountability can be discharged. The stockholders’ interest, both short- and long-term, is one of the areas. But it is only one. Peter Drucker, 1988 Harvard Business Review

The “real” cultural significance of accounts

Article

Dec 1987
ACCOUNT ORG SOC

Typically, accounting is portrayed as a passive information service, dedicated to faithfully reporting on economic reality. This paper, in contrast, investigates the re-presentional aspects of accounting, and the part it plays as a symbolic, cultural and hegemonic force, in struggles over the distribution of social income. The issues are examined empirically through the publishing patterns of the Journal of Accountancy, Accounting Review, and Fortune magazine between 1960 and 1973. Chronicling the changes in accounting literature is not our primary concern however. Rather, this work explores the relationships between accounting discourses and the conditions of social conflict in which these discourses are embedded. The evidence suggests that: different accounting journals specialize in different rhetorical functions; that these functions are discharged in harmony with other media and cultural forces (data on Fortune's discursive practices is provided for comparison); and that, over time, the discursive roles of accounting journals change with the evolving hegemonic climate. This paper contends that viewing accounting literature as disinterested inquiry or rigorous scholarship understates the social origins of research. Instead, we suggest that discursive accounting practices are more productively regarded as ideological weapons for participating in conflicts over the distribution of social wealth.

The Public Disclosure of Environmental Performance Information—A Dual Test of Media Agenda Setting Theory and Legitimacy Theory

Article

Dec 1998
ACCOUNT BUS RES

This paper documents the results of an empirical study undertaken within Australia of the relationship between the print media coverage given to various industries' environmental effects, and the levels of annual report environmental disclosures made by a sample of firms within those industries. The paper draws upon previous studies in media agenda setting theory and legitimacy theory to develop two testable hypotheses. Nine industries are reviewed across the period from 1981–1994. Drawing upon two theories, it is argued that the media can be particularly effective in driving the community's concern about the environmental performance of particular organisations (from media agenda setting theory). Where such concern is raised, organisations will respond by increasing the extent of disclosure of environmental information within the annual report (from legitimacy theory). The results indicate that for the majority of the industries studied, higher levels of media attention (as determined by a review of a number of print media newspapers and journals) are significantly associated with higher levels of annual report environmental disclosures.

Corporate Social Reporting: A Rebuttal of Legitimacy Theory

Article

Sep 1989
ACCOUNT BUS RES

Various rationales have been advanced to explain the phenomenon of corporate social reporting. Among these has been legitimacy theory which posits that corporate disclosures are made as reactions to environmental factors and in order to legitimise corporate actions. This paper reports the results of an historical analysis of social disclosures in 100 years of annual reporting by a dominant corporation in the Australian mining/manufacturing industry. A variable but significant pattern of social reporting is identified and compared with an earlier study of social reporting by US Steel. The results of this study fail to confirm legitimacy theory as the primary explanation for social reporting in the Australian case.

Transparent and Caring Corporations?: A Study of Sustainability Reports by the Body Shop and Royal Dutch/Shell

Article

Sep 2002

This article analyzes sustainability values reports published by The Body Shop International and by the Royal Dutch/Shell Group. The authors show how corporate discourses expressed in these precedent-setting texts both reflect and influence sociopolitical struggle over the meanings and practices of sustainable development. Specifically, the authors examine metaphors of transparency and care used to describe corporate rationales for increasing stakeholder communication, including reporting. Drawing on distinct discursive domains of business accountancy and personal ethics and sentiment, these metaphors promise to reconstruct the interface between the firm and society. Exploring the quite different assumptions on which each of these metaphors relies and their implications for corporate practices of sustainable development, the authors consider whether sustainability values reporting and the dialogue that it claims to facilitate can promote more democratic and socially and environmentally responsive corporate decision making, even as they impose new forms of managerial control.

Social accounting research: An Australasian perspective

Article

Mar 2007

This paper provides an insight into the nature and the extent of social accounting research being undertaken within Australasia. It demonstrates that Australasian researchers account for a significant amount of internationally published social accounting research, but emphasises that the research effort seems to be confined to a limited number of researchers perhaps reflecting a lack of ‘take-up’ in this area in terms of the scale of participation. Information is also presented about the relative propensity of journals within the sample to publish social accounting research, and identifies that ‘top tier’ accounting journals historically have not published social accounting research. The paper also considers various factors which seem to be impeding the ‘recruitment’ of new social accounting researchers.

Researching management accounting practice: The role of case study methods

Article

Sep 1990
Br Account Rev

R. E. Scapens

Case studies are being increasingly used as a research method for studying management accounting practice. However, little has been written about the nature and role of case study research. This paper examines different uses which can be made of case studies and attempts to locate a role for case study methods in researching management accounting practice.

Using Neo-institutionalism to Advance Social and Environmental Accounting

Article

Apr 2010
Crit Perspect Account

Neo-institutional theory can increase understanding of an organization's general response to social and environmental issues and social activism. More particularly, it can frame an organization's accounting responses. The analytical schema proposed by Lounsbury (1997) is deployed to explore social and environmental accounting issues that occurred in two local government authorities—one in Canada, one in England. Our analysis highlights possibilities for better and more complete theories of organizational transformation, and social and environmental accounting. We stress the importance of ethical values and ecological thinking if change (including accounting change) is to help institutions behave in a way that is conducive to achieving a sustainable future.

A Legitimate Concern for Environmental Accounting

Article

Oct 1995
Crit Perspect Account

Glen Lehman

This essay adapts John Rawls' A Theory of Justice to justify environmental accounting. The essay encourages accountants to report on the sustainable use of resources for present and future human generations and other life-forms. In this way, corporations would satisfy accountability relationship as part of an administrative solution to the environmental crisis. The essay supports the middle-of-the-road position of Gray et al. (1988, 1991), adding a notion of justice to society's background institutions. The approach to the environmental crisis is a theoretical one and responds to the charges of pluralism, relativism and quietism raised by Tinker et al. (1991). By adding fairness to the lexicon of accountability it justifies the publication of environmental information in accounting reports.

A Study of Environmental Disclosure Practices of Australian Corporations

Article

Jun 1996
ACCOUNT BUS RES

This paper analyses the environmental disclosure practices of Australian corporate entities. The paper documents three separate but related investigations. First, in a review of a sample of annual reports for the 1991 financial year, it is apparent that environmental disclosure practices adopted by the sample are self-laudatory, with companies promoting positive aspects of their environmental performance, but failing to disclose negative aspects. Second, in a review of corporate disclosure practices in the period 1980 to 1991, environmental disclosure made by the sample significantly increases across time. This change is linked to an apparent increase in societal concern relating to environmental issues. Finally, using a questionnaire administered to environmental lobby groups, it appears that the extent of corporate environmental disclosure is positively associated with the environmental lobby groups' concern about the environmental performance of companies within particular industries.

A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance

Article

Jan 1995
ACAD MANAGE REV

Max B. E. Clarkson

This article presents conclusions from a 10-year research program, the purpose of which has been to develop a framework and methodology, grounded in the reality of corporate behavior, for analyzing and evaluating corporate social performance. There are three principal sections: (a) a summary of the approaches, models, and methodologies used in conducting more than 70 field studies of corporate social performance from 1983-1993; (b) a discussion of the principal conclusions derived from the data that (1) corporations manage relationships with stakeholder groups rather than with society as a whole, (2) it is important to distinguish between social issues and stakeholder issues, and (3) it is necessary to identify the appropriate level of analysis in order to evaluate CSP; and (c) a discussion of propositions and areas for further research.

Determinants of Corporate Decision to Disclose Social Information

Article

Apr 1989
Account Audit Account J

The decision to disclose social information in annual reports is a voluntary one. A positive model of the factors that may influence firms' decisions to disclose social information is proposed. It is hypothesised that the decision may be affected by (a) social performance, (b) political visibility, (c) financial variables, and (d) economic performance. It is found that the decision to disclose social information is well explained by the model and that the key explanatory variables are social performance and political visibility.

A Theory of Public Health Sector Report: Forging a New Path

Article

Oct 1999
Account Audit Account J

Karen A. Van Peursem

With the aim of shedding light on issues surrounding the development and evaluation of report, this paper offers a theory for facilitating and legitimizing an accountability-based discourse and disclosure in the public health sector. The project adopts Laughlin’s (1995) vision of middle range theory and an accountability perspective to justify the form and normative perspective which shapes the skeletal model to follow. Formulated in part from an analysis of the health management and public sector accounting literatures, the model is now empirically supported from the preferences of health sector accountees in New Zealand. The result is a conceptual construct which is both considerate of and challenging to the standard financial accounting model. The skeletal model consists of five conceptual categories, their interrelationships and properties. The theoretical model considers and mandates illumination of political incentives, incorporates the assumption that accounting can be constitutive as well as reflective and is sympathetic to a wide range of interests and contextual distinctions.

Perspectives on "new" models of business reporting: A reflective note

Article

Nov 2006
Account Audit Account J

Purpose The purpose of this paper is to introduce alternative perspectives on “new” business reporting models as they appear in the “thought pieces” in this special themed section of AAAJ . Design/methodology/approach The paper employs a literature based analysis and critique. The paper is primarily a discussion paper. Findings There are several research issues examined in the papers in this special theme section which point to the need for researchers to reflect on their motivation, use of theory and values to ensure academic work is making a genuine contribution. Research limitations/implications “New” models of business reporting are experimental and could be explored in greater depth in future studies. Originality/value The papers contribute to the growing debate on “value” and key underlying issues associated with the emergence of “new” accounting and reporting practices. Through this process of reflection, hidden assumptions can be exposed, “new” visibilities explored, and competing dilemmas opened up.

Do Australian companies report environmental news objectively?: An analysis of environmental disclosures by firms prosecuted successfully by the Environmental Protection Authority

Article

May 1996
Account Audit Account J

Within Australia there is ageneral absence of professional or legislative rules requiring companies to provide information relating to their environmental performance or any environmental initiatives undertaken. Previous research studies have shown that many firms present environmental information, but only tend to present information which is favourable to their corporate image. Investigates the environmental reporting practices of a sample of 20 Australian companies which were subject to successful prosecution by the New South Wales, and Victorian Environmental Protection Authorities, during the period 1990-1993. Indicates a significant increase in the reporting of favourable environmental information surrounding environmental prosecution. Further, the amount of positive environmental information significantly outweighed the negative environmental information presented, which was interesting given that it is clear that the firms studied did have bad news to report. The existence of a proven environmental offence was reported by only two of the companies within the sample. Raises issues as to whether information about a proven environmental offence is “material” to account users and, if so, whether financial statements could be construed as being misleading in the absence of such information.

Twenty-Five Years of Social and Environmental Accounting Research: Is There a Silver Jubilee to Celebrate?

Seeking legitimacy: Social reporting in the healthcare sector

Abstract

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