Search results
1 – 10 of 763This paper aims to examine the processes of sustainability reporting assurance (SRA) and the influence they have on shaping perception from disclosures. Given the evidence of…
Abstract
Purpose
This paper aims to examine the processes of sustainability reporting assurance (SRA) and the influence they have on shaping perception from disclosures. Given the evidence of inconsistencies and ambiguities in assurance processes, this paper examines how legitimacy is attained and maintained at different stages of SRA.
Design/methodology/approach
Evidence collected from 23 semi-structured interviews with assurance providers (APs), consultants, professionals and non-governmental organisations (NGOs) (non-APs) was used to conduct a thematic analysis from the perspectives of interviewees.
Findings
APs and non-APs are united in recognising the value of SRA, although, perspectives on transparency between the two groups differ. Experience and industry knowledge are essential to SRA delivery with non-APs preferring accounting APs. Nevertheless, non-APs are concerned about the role of companies in deciding assurance scope, as it can affect scrutiny. APs favour data accuracy (as opposed to data relevance) assurance due to team dynamics and internal review influences, with the latter also restricting assurance innovation. APs are interested in accessing better evidence and stakeholder engagement evaluations. Providing advisory services was not rejected by all APs. The perspectives of APs and non-APs demonstrate how progress in SRA has gained pragmatic legitimacy with noticeable gaps that serve to undermine attainment of moral legitimacy.
Research limitations/implications
SRA is a developing practice that will adopt changes as it continues to mature; some of these changes could impact findings in this research. General perspectives on SRA were sought from interviewees, this affected the ability for an in-depth focus on any of the range of interesting SRA issues that arose over the course of the research. Interviews were conducted with relevant parties in the SRA space that operate in the UK. Perspectives from parties outside the UK were not solicited.
Practical implications
Companies make an important decision to commission SRA. Findings in this research have highlighted specific non-APs issues of concern that can be useful in structuring operations and reporting regimes to facilitate assurance procedures. The findings will also be helpful to APs as they can direct more emphasis on stakeholder concerns towards demonstrating greater stakeholder accountability. Regulatory and standard setters can enact appropriate policies that can potentially drive the practice forward for assessment of cognitive legitimacy.
Social implications
The findings provide relevant account of stakeholder voices on the quality of corporate disclosures that has a direct effect on the wellbeing of communities and sustainability of societies. Collective stakeholder input on expectations can shape sustainability discourse.
Originality/value
This research demonstrates the applicability of financial audit quality indicators in SRA processes, extends the debate around the effectiveness of new audit fields and highlights the challenges of maintaining legitimacy with different audiences.
Details
Keywords
Justyna Fijałkowska, Dominika Hadro, Enrico Supino and Karol M. Klimczak
This study aims to explore the intelligibility of communication with stakeholders as a result of accrual accounting adoption. It focuses on changes in the use of visual forms and…
Abstract
Purpose
This study aims to explore the intelligibility of communication with stakeholders as a result of accrual accounting adoption. It focuses on changes in the use of visual forms and the readability of text that occurred immediately after the adoption of accrual accounting in performance reports of Italian public universities.
Design/methodology/approach
The authors collect the stakeholder section of performance reports published before and after accrual accounting adoption. Then, the authors use manual and computer-assisted textual analysis. Finally, the authors explore the data using principal component analysis and qualitative comparative analysis.
Findings
This study demonstrates that switching from cash to accrual accounting provokes immediate changes in communication patterns. It confirms the significant reduction of readability and increase in visual forms after accruals accounting adoption. The results indicate that smaller universities especially put effort into increasing intelligibility while implementing a more complex accounting system. This study also finds a relation between the change in readability and the change in visual forms that are complementary, with the exception of several very large universities.
Practical implications
The findings underline the possibility of neutralising the adverse effects of accounting reform associated with its complexity and difficulties in understanding by the use of visual forms and attention to the document’s readability.
Originality/value
This paper adds a new dimension to the study of public sector accounting from the external stakeholder perspective. It provides further insight into the link between accrual accounting adoption and readability, together with the use of visual forms by universities.
Details
Keywords
Floriana Fusco, Pietro Pavone and Paolo Ricci
This study aims to explore to what extent stakeholder engagement affects the sustainability reporting (SR) process and if it succeeds in facilitating the encounter between demand…
Abstract
Purpose
This study aims to explore to what extent stakeholder engagement affects the sustainability reporting (SR) process and if it succeeds in facilitating the encounter between demand and supply of accountability, as well as the main challenges of this practice, by focusing on a crucial and under-investigated public sector area, the judicial system.
Design/methodology/approach
The study adopts an action research (AR) approach. Specifically, it focuses on a specific phase (i.e. stakeholder engagement) of the broader project that was carried on from 2019 in an Italian Public Prosecutor’s Office. Data were collected from multiple sources, i.e. written notes and reports gathered during meetings, the survey administered to stakeholders and the published sustainability reports.
Findings
Stakeholder engagement may be a valuable and effective tool for improving the level of accountability, as it increases the responsiveness of SR to the informative needs of stakeholders. However, the study also highlights some critical points that must be addressed to exploit this fully. Among these is the need to act upstream of the process by working on an accounting system that goes beyond the economic dynamics and can effectively answer the accountability demand.
Originality/value
The study contributes to theoretical and empirical knowledge by exploring a topic and a public sphere still limited investigated, i.e. the stakeholder engagement in sustainability in the judicial sector. The AR approach also presents some originality points, as it is low widespread in management and accounting literature.
Details
Keywords
Simon Lundh, Karin Seger, Magnus Frostenson and Sven Helin
The purpose of this study is to identify the norms that underlie and condition the decisions made by preparers of financial reports.
Abstract
Purpose
The purpose of this study is to identify the norms that underlie and condition the decisions made by preparers of financial reports.
Design/methodology/approach
This interview-based study illustrates how financial report preparers engage in behaviors linked to the perception of recognition and measurement of internally generated intangible assets by important stakeholders. All of the companies included in the study adhere to International Financial Reporting Standards when creating their consolidated financial statements. The participants selected for the study are involved in accounting decisions related to research and development in accordance with International Accounting Standard (IAS) 38.
Findings
The authors identify the normative assumptions underlying the recognition and measurement of internally generated intangibles, which are based on concerns of consistency, credibility and reasonableness. The authors find that the normative basis for legitimacy in financial accounting is primarily related to cognitive legitimacy and is not of a moral or pragmatic nature.
Originality/value
The study reveals that recognition and measurement of internally generated intangibles in financial accounting relate to legitimacy. The authors identify specific norms that form the basis of this legitimacy, namely, consistency, credibility and reasonableness. These identified norms serve as constraints, mitigating the risk of judgment misuse within the IAS 38 framework for earnings management.
Details
Keywords
Ikenna Elias Asogwa, Maria Estela Varua, Rina Datt and Peter Humphreys
The purpose of this study is to present an in-depth examination of stakeholder engagement processes in non-governmental organisations (NGOs) from the perspective of NGO managers…
Abstract
Purpose
The purpose of this study is to present an in-depth examination of stakeholder engagement processes in non-governmental organisations (NGOs) from the perspective of NGO managers to enhance accountability and the effectiveness with which aid services are delivered. Specifically, demand-side (downward) accountability and the implications of an accountability system that is predominantly supply-side (upward) focused are explored.
Design/methodology/approach
This study draws on evidence gathered from 25 in-depth interviews with representatives of leading NGOs in Nigeria to explore and uncover the nature of stakeholder engagement and accountability processes in their respective organisations. This study shows prospects for entrenching organisational reform that balances power and influence that benefits the less economically powerful demand side of the stakeholders. A relevant aspect of stakeholder theory was used to frame the analysis.
Findings
The study reveals an overlay of a blanket engagement system and a seeming reluctance of NGOs to disclose critical information to the demand-side stakeholders (DSS), and suggests ways to meet sustainability demands and address the militating concerns. A perceived lack of understanding and prospects or outcomes of demand-side accountability are central to this; however, engagement outcomes that account for impact rather than output are explored and reported. The findings suggest that proper accountability involves adequate stakeholder engagement which is a prerequisite and paramount for sustainability.
Research limitations/implications
This study primarily delineates NGO managers’ views on NGO engagement and accountability dynamics. Future research may explore the perspectives of downward stakeholders themselves. The study highlights the concern for NGOs to maintain a defined stakeholder engagement process that resists external forces that may impact on their operations and derail their mission, resulting in duplication of services.
Practical implications
The study shows the implications of donors’ influence on accountability practices which can be improved by re-structuring supply-side stakeholders to significantly include DSS accountability requirements in the key performance indicators of NGOs in developing countries. The authors present a nuanced perspective to aid delivery and access that ensures improved services and more effective, impactful and sustainable aid which is of practical relevance to NGOs and their accountability mechanism.
Originality/value
This study deepens the understanding of the dynamics of stakeholder engagement and accountability processes and shows that the most effective way to deploy aid funds to meet sustainability goals is to draw on the experiences and local knowledge of the DSS. This would require an effective and results-driven dialogue among all the stakeholders involved. The proposed engagement and management framework contribute to theory and practice by fostering multi-stakeholder cooperation, DSS accountability and the advancement of sustainable development
Details
Keywords
Natalia Aversano, Diana Ferullo, Giuseppe Nicolò and Nadia Ardito
The present research aims to understand the performance disclosure levels provided by Italian healthcare organisations (HCOs). The authors conducted this study to assess the…
Abstract
Purpose
The present research aims to understand the performance disclosure levels provided by Italian healthcare organisations (HCOs). The authors conducted this study to assess the transparency of HCOs' performance reporting processes by examining the amount and the type of information disclosed in Annual Performance Reports (APRs).
Design/methodology/approach
The present study uses a qualitative research methodology based on manual content analysis. The APRs of a sample of 171 Italian public HCOs were analysed.
Findings
Results evidence that the APRs provide a sufficient level of disclosure of performance information, putting high attention on the epidemiological conditions; however, the APRs do not present a strong information function for stakeholders' decision-making purposes. The Italian HCOs APRs are not easily understandable because the APRs are not very concise and present information mainly in discursive terms with limited graphic support.
Originality/value
To the best of the authors' knowledge, this is the first research investigating both the extent and type of performance information reported by Italian HCOs in the APRs, considering the particular contextual conditions caused by the most significant challenge the healthcare (HC) sector has faced in recent years: the epidemiological crisis of the coronavirus disease 2019 (COVID-19). The study also explores whether APRs are currently used by HCOs as a merely regulatory requirement or as an information tool for accountability and decision-making purposes.
Details
Keywords
Ahmad Khodamipour, Hassan Yazdifar, Mahdi Askari Shahamabad and Parvin Khajavi
Today, with the increasing involvement of the environment and human beings business units, paying attention to fulfilling social responsibility obligations while making a profit…
Abstract
Purpose
Today, with the increasing involvement of the environment and human beings business units, paying attention to fulfilling social responsibility obligations while making a profit has become increasingly necessary for achieving sustainable development goals. Attention to profit by organizations should not be without regard to their social and environmental performance. Social responsibility accounting (SRA) is an approach that can pay more attention to the social and environmental performance of companies, but it has many barriers. Therefore, the purpose of this study is to identify barriers to SRA implementation and provide strategies to overcome these barriers.
Design/methodology/approach
In this study, the authors identify barriers to social responsibility accounting implementation and provide strategies to overcome these barriers. By literature review, 12 barriers and seven strategies were identified and approved using the opinions of six academic experts. Interpretive structural modeling (ISM) has been used to identify significant barriers and find textual relationships between them. The fuzzy technique for order performance by similarity to ideal solution (TOPSIS) method has been used to identify and rank strategies for overcoming these barriers. This study was undertaken in Iran (an emerging market). The data has been gathered from 18 experts selected using purposive sampling and included CEOs of the organization, senior accountants and active researchers well familiar with the field of social responsibility accounting.
Findings
Based on the results of this study, the cultural differences barrier was introduced as the primary and underlying barrier of the social responsibility accounting barriers model. At the next level, barriers such as “lack of public awareness of the importance of social responsibility accounting, lack of social responsibility accounting implementation regulations and organization size” are significant barriers to social responsibility accounting implementation. Removing these barriers will help remove other barriers in this direction. In addition, the results of the TOPSIS method showed that “mandatory regulations, the introduction of guidelines and social responsibility accounting standards,” “regulatory developments and government incentive schemes to implement social responsibility accounting,” as well as “increasing public awareness of the benefits of social responsibility accounting” are some of the essential social responsibility accounting implementation strategies.
Practical implications
The findings of the study have implications for both professional accounting bodies for developing the necessary standards and for policymakers for adopting policies that facilitate the implementation of social responsibility accounting to achieve sustainability.
Social implications
This paper creates a new perspective on the practical implementation of social responsibility accounting, closely related to improving environmental performance and increasing social welfare through improving sustainability.
Originality/value
Experts believe that the strategies mentioned above will be very effective and helpful in removing the barriers of the lower level of the model. To the best of the authors’ knowledge, for the first time, this study develops a model of social responsibility accounting barriers and ranks the most critical implementation strategies.
Details
Keywords
This study aims to investigate the relationships between big data analytics, management accounting practices and corporate sustainability and, more precisely, the impact of the…
Abstract
Purpose
This study aims to investigate the relationships between big data analytics, management accounting practices and corporate sustainability and, more precisely, the impact of the integration between big data analytics and management accounting on corporate sustainability performance development.
Design/methodology/approach
A qualitative case study approach is used in this study with multiple collecting data tools as in-depth interviews and observations, in addition to the content analysis used of the annual reports for the year 2021, of Almarai manufacturing corporate (one of the leaders of food and beverage manufacturing corporates in Saudi Arabia and other countries).
Findings
Research findings provide good insights about the significant impact of the effective integration between big data analytics and management accounting on corporate sustainability performance development, big data can assist management accounting to form corporate value-added strategies and activities.
Research limitations/implications
The study is limitedly applied to one manufacturing corporate as a study case; therefore, the findings cannot be generalized. Thus, future research can examine the association between the current study variables with wide-scale applications and with different approaches and in different contexts to enrich the findings. Moreover, future research may focus on the integration between big data analytics and management accounting reports in the meta-verse environment to explore the benefits that corporates could gain from the features and capabilities of meta-verse technology.
Originality/value
There is a research gap regarding the impact of the integration between big data analytics and management accounting practices on corporate sustainability development, as most of the previous studies focused on two variables only of the current study variables; therefore, this study tries to investigate and give important insights about it.
Details
Keywords
Parvez Mia, James Hazelton and James Guthrie Am
This study aims to evaluate the quality of the energy efficiency disclosures made by Australian cities. As cities are significant energy users, and energy use is a crucial source…
Abstract
Purpose
This study aims to evaluate the quality of the energy efficiency disclosures made by Australian cities. As cities are significant energy users, and energy use is a crucial source of greenhouse gas emissions, energy efficiency initiatives can play an essential role in addressing climate change. Yet, little is understood about the energy efficiency disclosures being made.
Design/methodology/approach
The authors developed an original energy efficiency disclosure index to assess the reporting quality of the eight largest Australian cities. The websites of these cities were analysed for information on energy efficiency measures from December 2018 to June 2019. Annual reports, environmental reports, climate action plans and any other material related to energy plans were downloaded and then coded using the index.
Findings
While all cities provided energy efficiency information, little financial information was provided, limited forward-looking information was disclosed, key challenges were not disclosed, and each city provided energy efficiency disclosures differently. Collectively, these findings demonstrate that public accountability is limited.
Research limitations/implications
An important implication is the need to standardise and improve cities’ energy efficiency reporting, especially concerning financial information. Cities, governments and the Carbon Disclosure Project (formerly the CDP) could achieve this, perhaps as part of the broader update of the CDP city-focused guidelines for greenhouse gas (GHG) reporting.
Originality/value
Although some studies on GHG reporting by cities have already been undertaken, including energy efficiency as part of their disclosure index, no study has focused on energy efficiency disclosures. The authors provide original insights concerning these practices. The study also provides an energy efficiency disclosure index that can be used in further research.
Details
Keywords
Lindani Myeza, Marianne Kok, Yvette Lange and Warren Maroun
This study aims to examine how governing bodies demonstrated stakeholder engagement during the time of the COVID-19 crisis in South Africa.
Abstract
Purpose
This study aims to examine how governing bodies demonstrated stakeholder engagement during the time of the COVID-19 crisis in South Africa.
Design/methodology/approach
This study uses a qualitative approach based on semi-structured interviews with 18 participants, comprising of preparers of financial statements, board members and management consultants/advisors. The study also relied on the analysis of articles on corporate webpages and publications produced by professional bodies on the economic, social and environmental impact of COVID-19.
Findings
The results of this study indicated that governing bodies demonstrated stakeholder engagement during times of crisis through transparent reporting, corporate social responsibility initiatives and active stakeholder inclusivity.
Originality/value
This study contributes to the body of research on stakeholder engagement during a crisis and provides evidence of the role stakeholder inclusivity can play in responding to a crisis. The findings will be useful in understanding the importance of stakeholder engagement during times of crisis. The study is one of the first, to the best of the authors’ knowledge, to evaluate how stakeholder engagement principles can be followed by governing bodies during a crisis.
Details