Changing Social and Environmental Reporting Systems

Abstract

Based on a case study of a large multinational group, this paper addresses the way in which social and environmental reporting (SER) systems were changed and the consequences and controversies associated with this change. Drawing on Power's work on the processes by which things are made auditable via underlying systems, we focus on how and why a specific programme with auditability as its ultimate aim changed the basis on which the external social and environmental report was prepared. Our analysis demonstrates that the perceived alignment with the financial report preparation and the explicit pursuit of auditability legitimized SER and paved the way for data systems to be changed. The programme borrowed authority from financial accounting technologies not only to make a system change but also to push SER internally, as we suggest that an intraorganizational group used the programme to ensure the existence and organizational status of SER. However, we also illustrate some of the practical challenges associated with this change, which include issues related to internal control and the establishment of organizational boundaries.

Managerial perceptions of corporate sustainability reporting determinants in Nigeria

“…However, studies (Adams, 2002;Kaspersen, 2013;Krongkaew-Arreya & Setthasakko, 2013) have argued for the need to assess institutional pressures through engagement with managers in business organizations. The findings from the literature on engagement-based studies in the area of sustainability reporting are not conclusive.…”

External Social Accounting Developments: Analysis and Discussion of Academic Critiques

“…ESA is therefore related in part to a firm's representation of its operations and their effects on society (Kaspersen, 2013;Dey, 2007). This representation includes corporate claims regarding their concerns, and measures taken for social and environmental matters.…”

“…This compelled firms to be more social responsible (Kaspersen, 2013;Thomson and Bebbington, 2005). Milovanović (2009) noted that through application of social accounting, companies are able to improve their market share, enhance their image, strengthen brands, and enhance their capability to attract and maintain employees.…”

“…This is a means of ensuring that reporting is reliable and to place increased pressure on a firm regarding their effect on society (Blowfield and Murray, 2011). Nevertheless, this concept is still difficult to explain in comparison with financial auditing (Kaspersen, 2013).…”

“…The dominance of industrial standards during this time encouraged public attention to focus on environmentalism, resulting in increased public pressure (Blowfield and Murray, 2011). Thus, the key aspect was sustainability and this led to the initiation of sustainability reporting, which includes sustainability matters within ESR (Kaspersen, 2013;Schaltegger and Wagner, 2011).…”