Exploring the emancipatory dimensions of globalisation: The struggle over IFRS8 and country-by-country reporting

Abstract

This paper unravels how Publish What You Pay (PWYP), a transnational social movement organisation campaigning for transparency reporting in the extractive sector to improve the lives of women, men and children in resource-rich countries, successfully mobilised emancipatory accounting change in the context of globalisation. Social movement theory helps explain how PWYP used political opportunity structures available in the International Accounting Standards Board's (IASB) due process, in an attempt to persuade IASB to adopt [a form of] country-bycountry reporting for transnational extractive companies. Locating the research on the political and publicised struggle surrounding IASB's adoption of International Financial Reporting Standard (IFRS) 8-Operating Segments, the research finds PWYP was unsuccessful in persuading IASB to adopt country-by-country reporting. Despite this setback, and assisted by the unfolding drama of the global financial crisis, PWYP's capacity to frame arguments, form alliances, evolve tactics and shift the target of its agency in response to institutional dynamics, meant they were ultimately successful in innovating, diffusing and instituting [a form of] mandatory country-by-country reporting in Europe and beyond. Such incremental emancipatory accounting change evidences a shift in the balance of power over accounting's processual development away from IASB and neoliberal hegemonic forces. The findings of this research lend substance to Gallhofer and Haslam's (2007) rescuing critique of constructing an international emancipatory accounting, emerging from globalisation's embedded conflicts, consistent with their (2006) post-Marxist thesis of "continuum thinking orientated through struggle" (p.910).

Transparency and accountability for the global good? The UK’s implementation of EU law requiring country-by-country reporting of payments to governments by extractives

“…For some, accounting and related systems, actually and potentially, have enabling and emancipatory dimensions aligning them in some ways to serving progressive notions of the public good, K & O ' a range of academic accounting studies inform emancipatory projects through what Gallhofer & Haslam (2017) term a new pragmatist lens, e.g. Bebbington et al (2007), Brown (2009), Bebbington et al (2014), Atkins et al (2015, Brown & Dillard (2015), Atkins et al (2017, Crawford (2017), Gallhofer & Haslam (2017). 9 In discourses of emancipatory accounting, Gallhofer & Haslam (2003 and Gallhofer et al (2015) articulate a critical theoretical perspective drawing from post-structuralist, postmodern and post-Marxist theorizing.…”

Globalization and Corporate Governance Mechanism, Engine of Change

“…Globalization has been described by Gallhofer andHaslam (2006) &Crawford (2017) as a dynamic phenomenon that has supported the spread of international organizations operating at a level beyond individual state control. Supra-state organizations take the form of: for-profit Transnational Companies (TNCs); international governmental organization (IGOs), for example United Nations organizations and committees of the European Parliament; and International Non-Governmental Organizations (INGOs), encompassing diverse organizations such as the International Accounting Standard Board (IASB), and international charities.…”

“…Supra-state organizations take the form of: for-profit Transnational Companies (TNCs); international governmental organization (IGOs), for example United Nations organizations and committees of the European Parliament; and International Non-Governmental Organizations (INGOs), encompassing diverse organizations such as the International Accounting Standard Board (IASB), and international charities. Contemporary international accounting emphasizes measuring and communicating the economic consequences of international business to "foster trust, growth and long-term financial stability in the global economy" (IFRS Foundation, 2015a), supporting neoliberal capitalism (Crawford, 2017). At the other side of the coin, in many developing economies, globalization has rather increased poverty, there increase in inequality, and had detrimental environmental impacts, prompting many academics, commentators and poverty reduction and environmental activists to seek change (Hopper, 2017).…”

“…Attention turned to the "Capable State" and "Good Governance" to complement market-based policies. Resource-rich countries are seen to have poor democracy/governance, government corruption and may be socially divided by civil wars and human rights abuses (Moffat & Haralampieva, 2014;Transparency International, 2011;Crawford, 2017). There are high acuities of government corruption in these countries (Transparency International, 2011) with reports of unseen payments made by transnational companies to government officials, or intermediaries, to access the right to explore natural resources (for example, see: Huffington Post & Fairfax Media, 2016).…”

“…Other non-financial disclosure concerning internal control which is material for decision making need to be disclosure by various firms in these two countries (Nigeria and Ghana). Research has shown that corporate governance disclosure predicts a lower cost of equity capital (Farvaque, Refait-Alexandre and Saï dane, 2011;Crawford, 2017). The measurement of these variables is presented Table 2.…”