Legitimation strategies in Australian mining extended performance reporting

Abstract

Purpose

It has long been recognised that social institutions, including business organisations, must obtain social approval for their continued operations. Recently, economic performance and social and environmental (SE) performance have become increasingly important issues of interest to stakeholders, including shareholders. It is expected that companies will increasingly report SE and economic performance as a response to public pressure in securing their right to operate within society. This paper aims to address these issues.

Design/methodology/approach

This study uses the extended performance‐reporting framework to capture reporting in the Australian mining industry. Based on legitimacy theory, it then examines, ex post, whether the sample companies may have adopted all four of Lindblom's strategies in their voluntary extended performance reporting within their annual reports. It also assesses the extent to which each of these four strategies may have been adopted. In addition to what was reported, this study analyses what was not reported, or the absence of disclosure, which has been ignored in prior research.

Findings

The analysis shows that the sample companies may have adopted all four of Lindblom's strategies in their voluntary disclosure within their annual reports.

Originality/value

The paper explores the various strategies adopted by companies when reporting SE performance.

Citation

Yongvanich, K. and Guthrie, J. (2007), "Legitimation strategies in Australian mining extended performance reporting", Journal of Human Resource Costing & Accounting, Vol. 11 No. 3, pp. 156-177. https://doi.org/10.1108/14013380710843764