Jenni Puroila and Hannele Mäkelä
The purpose of this paper is to contribute to the socio-political role of materiality assessment in sustainability reporting literature and discuss the potential of materiality…
Abstract
Purpose
The purpose of this paper is to contribute to the socio-political role of materiality assessment in sustainability reporting literature and discuss the potential of materiality assessment to advance more inclusive accounting and reporting practices, in particular critical dialogic accounting.
Design/methodology/approach
Drawing on literature on the concept of materiality together with insights from stakeholder engagement, commensuration and critical dialogic accounting the paper analyses disclosure on materiality in sustainability reports. Empirically, qualitative content analysis is used to analyse 44 sustainability reports from the leading companies.
Findings
The authors argue that, first, the technic-rational approach to materiality portrays the assessment as a neutral and value-free measurement, and second, the materiality matrix presents the multiple stakeholders as having a unified understanding of what is considered important in corporate sustainability. Thus, the technic-rational approach to the materiality assessment, reinforced with the use of the matrix is a value-laden judgement of what matters in corporate sustainability and narrows down rather than opens up the complexity of the assessment of material sustainability issues, stakeholder engagement and the societal pursuit of sustainable development.
Originality/value
The understandings and implications of the concept of materiality are ambiguous and wide-reaching, as, through constituting the legitimised set of claims and information on corporate sustainable performance, it impacts our understanding of sustainable development at large, and affects the corporate and policy-level transition towards sustainability. Exploring insights from critical dialogic accounting help us to elaborate on the conceptions and practical implications of materiality assessment that enhance stakeholder engagement in a democratic, rather than managerial, spirit.
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This paper aims to contribute to the understanding of the social aspects of corporate social responsibility (CSR) by studying a case of organizational downsizing.
Abstract
Purpose
This paper aims to contribute to the understanding of the social aspects of corporate social responsibility (CSR) by studying a case of organizational downsizing.
Design/methodology/approach
The paper uses a theoretical framework consisting of stakeholder theory and legitimacy theory together with the concept of social contract. Textual analysis methods are used to analyse and interpret the empirical data, which consist of mass media articles.
Findings
The main finding is that key stakeholders, especially employees and their representatives and the multinational corporation (MNC) itself perceive social aspects of CSR differently. The economic dimension dominates the social aspect in the corporate representatives' argumentation. Accounting information is used as a rhetorical tool to legitimise the downsizing actions rather than for purposes of accountability and transparent informative content.
Research limitations/implications
The research is based on a detailed analysis of a specific context. This may limit the wider applicability of the findings. Even so, it adds insights to the academic literature on the varying conceptions of the social responsibilities of corporations, perceived not only by the firm itself, but also by different stakeholders.
Originality/value
The paper contributes to the literature on CSR by investigating understandings of corporate social responsibility in a case where the economic and social responsibilities of a firm are publicly debated. The study also links the theoretical debate on corporate social responsibility to a context with a complex range of political and social factors affecting the construction of the social and economic responsibilities of a firm.
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Alexander Hofer, Ewald Aschauer and Patrick Velte
This study aims to analyse the motivations and underlying assumptions of decision makers driving the adoption of sustainability-oriented targets in executive compensation (SCTs…
Abstract
Purpose
This study aims to analyse the motivations and underlying assumptions of decision makers driving the adoption of sustainability-oriented targets in executive compensation (SCTs) to better understand SCTs’ impact on sustainability performance.
Design/methodology/approach
Through a qualitative approach, 15 in-depth interviews are conducted in a two-tier governance setting. Participants include management and supervisory board members, compensation consultants and other stakeholders involved in proxy voting.
Findings
SCT implementation is primarily determined by meeting shareholders’ expectations rather than those of other stakeholders. Decision makers react in a differentiated way to increased expectations by implementing either primarily symbolic or substantive measures and encounter different implementation challenges like insufficient data quality and a lack of experience within supervisory boards, both of which potentially contribute to decoupling.
Research limitations/implications
The study offers valuable insights for companies in designing SCTs and emphasises the significance of addressing decoupling to effectively enhance sustainability performance through SCTs and provides a foundation for future studies aimed at analysing this phenomenon.
Originality/value
Using a neo-institutional theory lens, this study marks one of the first interview-based investigations to distinguish between symbolic and substantial SCTs. It delves deeply into the role of decoupling and the associated challenges, offering fresh perspectives within the under-researched framework of a two-tier corporate governance structure. Moreover, this study aims to meticulously capture the real-world design practices and implementation processes of SCTs through experts, an aspect that was emphasised as a limitation in previous studies.
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Ahesha Perera and Liz Rainsbury
This study aims to demonstrate how Carney’s ladder of analytical abstraction is used to examine the motivations of banks for reporting human capital (HC) information.
Abstract
Purpose
This study aims to demonstrate how Carney’s ladder of analytical abstraction is used to examine the motivations of banks for reporting human capital (HC) information.
Design/methodology/approach
The authors use semi-structured interviews of senior bank employees at eight large New Zealand banks. They analyse the managers’ views using a constructive mapping of responses applying Carney’s ladder of analytical abstraction. The findings are interpreted from a stakeholder theory perspective.
Findings
The authors find that the New Zealand banks report on HC to manage reputation, strengthen employee relationships and achieve competitive advantages. The results suggest that banks engage in opportunistic reporting to distract external stakeholders while advancing their interests.
Research limitations/implications
The study will guide researchers in the use of Carney’s ladder of analytical abstraction in analysing qualitative data.
Practical implications
This study provides insights for businesses to improve the consistency and quality of HC reporting and ensure that the information needs of broader stakeholder groups are met.
Originality/value
Some previous voluntary reporting studies analyse their data using inductive analysis. The authors use Carney’s ladder of analytical abstraction as a framework to guide our inductive analysis.
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Kari Lukka, Sven Modell and Eija Vinnari
This paper examines the influence of the normal science tradition, epitomized by the notion that “theory is king”, on contemporary accounting research and the epistemological…
Abstract
Purpose
This paper examines the influence of the normal science tradition, epitomized by the notion that “theory is king”, on contemporary accounting research and the epistemological tensions that may emerge as this idea is applied to particular ways of studying accounting. For illustrative purposes, the authors focus on research informed by actor-network theory (ANT) which can be seen as an “extreme case” in the sense that it is, in principle, difficult to reconcile with the normal science aspirations.
Design/methodology/approach
The paper offers an analysis based on a close reading of how accounting scholars, using ANT, theorize, and if they do engage in explicit theorizing, how they deal with the tensions that might emerge from the need to reconcile its epistemological underpinnings with those of the normal science tradition.
Findings
The findings of this paper show that the tensions between normal science thinking and the epistemological principles of ANT have, in a few cases, been avoided, as researchers stay relatively faithful to ANT and largely refrain from further theory development. However, in most cases, the tensions have ostensibly been ignored as researchers blend the epistemology of ANT and that of normal science without reflecting on the implications of doing so.
Originality/value
The paper contributes to emerging debates on the role of the normal science tradition in contemporary accounting research, and also extends recent discussions on the role of theory in accounting research inspired by ANT. The paper proposes three reasons for the observed blending of epistemologies: unawareness of tensions, epistemological eclecticism and various political considerations.
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Anwar Halari and Marijana Baric
Transitioning to a circular economy (CE) requires efforts from a broad range of stakeholders; however, the role of accountants within this remains inconspicuous. Taking individual…
Abstract
Purpose
Transitioning to a circular economy (CE) requires efforts from a broad range of stakeholders; however, the role of accountants within this remains inconspicuous. Taking individual accountants’ perspective within the UK context, this study aims to investigate the current state of involvement of accountants in the CE (and sustainability more broadly) as well as the barriers that they face.
Design/methodology/approach
The authors adopted a multi-perspective investigation drawing on viewpoints from various actors such as qualified accountants, trainee accountants, accountants holding senior positions within sustainability and/or CE and non-accountants with an expertise in sustainability and CE to understand the barriers that accountants face in their involvement in CE. The study consisted of 23 semi-structured interviews with participants at different levels of CE and sustainability engagement.
Findings
The authors find that the lack of involvement of accountants in embracing CE principles arises from the conceptual distinction between the perceived nature of sustainability and accounting, and the perceived stereotypical views of accountants, rather than the capabilities of the accountants themselves. This results in tensions of engagement that impede their involvement. The authors therefore offer a deeper, context-bound understanding of the factors that contribute towards a lack of involvement with accountants as key stakeholders in the CE.
Originality/value
Through an exploratory inquiry of accountant’s perspective, and drawing on accounting literature on stereotypes, the authors provide a novel understanding into the nuances, inherent tensions and trade-offs that exist in involving accountants in the CE.
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Terhi Saaranen, Kerttu Tossavainen, Hannele Turunen and Paula Naumanen
The purpose of this paper is to present the baseline results of a school development project where the aim was to improve school community staff's occupational wellbeing in…
Abstract
Purpose
The purpose of this paper is to present the baseline results of a school development project where the aim was to improve school community staff's occupational wellbeing in co‐operation with occupational health nurses.
Design/methodology/approach
The Wellbeing at Your Work index form for school staff developed for the study aimed to account for occupational wellbeing and satisfaction in terms of the activities maintaining the ability to work as well as the working conditions, working community, worker and work and professional competence and the need to develop them.
Findings
The most problematic factors of occupational wellbeing were the urgency and pace of work at school and the problems in working space, postures and equipment. In addition, the activities supporting resources, including stress control, exercise, relaxation and mentoring, were inadequate at work.
Research limitations
The sample of school staff (n=271) consisted of 12 schools in Eastern Finland, and the results cannot be generalised widely due to the small and geographically defined sample. However, the results are suggestive for other schools elsewhere in Finland.
Practical implications
The content model for the promotion of occupational wellbeing presented in the article and the results obtained provide a broad and practical approach to the development of school staff's occupational wellbeing. Occupational health care services are meant to support school communities, and they should therefore provide better information of their services and develop their competence based on the content model of occupational wellbeing.
Originality/value
The work index form based on the content model serves as a good tool for schools and occupational health care in evaluating and developing occupational wellbeing.
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Hannele Roponen, Elina Fonsén, Tuulikki Ukkonen-Mikkola and Raisa Ahtiainen
This study examines the social organizational structure of one early childhood education (ECE) center in Finland and the relationship between this structure and the roles and the…
Abstract
Purpose
This study examines the social organizational structure of one early childhood education (ECE) center in Finland and the relationship between this structure and the roles and the responsibilities of the members of the organization.
Design/methodology/approach
The research is a qualitative case study with ethnographic features. Its variables for content analysis are based on Henry Mintzberg's theory of organizational design.
Findings
The study's results show that the organizational structure of the ECE center follows the organizational configuration of a Professional bureaucracy and that the multiprofessional teams follow the configuration of a Simple structure. The structures for centralization and decentralization are suitable for a professional bureaucracy, but the roles of the members of the organization and the processes for shared decision-making lack clarification. The shortage of qualified ECE teachers disrupts the function of the organization and the work of ECE leaders.
Research limitations/implications
The educational background of subjects may have affected the findings.
Originality/value
The study uses Henry Mintzberg's organizational structure theory to evaluate how and why power is distributed and activities are coordinated at the ECE center. The results also show what parts of the organization pose challenges that most commonly disrupt the organization's operations. With these findings, it is possible to expand the understanding of roles and responsibilities in the currently reforming ECE environment and what ECE centers need to function effectively. The study is part of a larger research project and will be continued to examine the leadership culture of the ECE center.