This paper addresses the theoretical framework on corporate social reporting. Although that corporate social reporting has been analysed from different perspectives, legitmacy theory currently is the dominating perspective. Authors employing this framework suggest that social and environmental disclosures are responses to both public pressure and increased media attention resulting from major social incidents such as the Exxon Valdez oil spill and the chemical leak in Bhopal (India). More specifically, those authors argue that the increase in social disclosures represent a strategy (...) to alter the public''s perception about the legitimacy of the organisation. Therefore, we suggest using corporate communication as an overarching framework to study corporate social reporting in which corporate image and corporate identity are central. (shrink)

Corporate, Social, Ethical and Environmental Reporting should ideally discharge the accountability of an organisation to its stakeholders. Voluntary reporting has been characterised by a dearth of neutral and objective information such that the advocates of SEER recommend that it be made compulsory. Their underlying rationale is that legally specified disclosure requirements and enforcement mechanisms will enhance the quality of such reporting. This paper sets out to explore how realistic this scenario actually is, in view of the conflicting interpretations in the (...) literature on this subject. To that end, a survey of the reporting patterns of 78 of the largest Spanish companies between 2001 and 2003 examines the extent of their compliance with the ICAC-2002 standard, which obliged them to make environmental disclosures in their financial statements. The results suggest that progressive and improved regulation could increase the volume and quality of SEER disclosures. They also suggest, however, that persistent non-compliance means that the problems associated with voluntary disclosure still exist. Finally, through an impression management perspective, the study reveals, the diverse strategies, ranging from dismissal to concealment, that are employed by companies to avoid transparency. As regulation improves and enforcement expectations rise, it becomes more difficult to dismiss compulsory reporting norms. As a result, some firms engage in more complex concealment strategies to attain corporate legitimacy, depriving stakeholders of regulatory information. The latter point serves to reconcile apparently contradictory explanations in the literature as to whether legitimacy theory might explain partial compliance with SEER regulation. (shrink)

This book provides an exciting and diverse philosophical exploration of the role of practice and practices in human activity. It contains original essays and critiques of this philosophical and sociological attempt to move beyond current problematic ways of thinking in the humanities and social sciences. It will be useful across many disciplines, including philosophy, sociology, science, cultural theory, history and anthropology.

Inspired by Heidegger’s concept of the clearing of being, and by Wittgenstein’s ideas on human practice, Theodore Schatzki offers a novel approach to understanding the constitution and transformation of social life. Key to the account he develops here is the context in which social life unfolds—the "site of the social"—as a contingent and constantly metamorphosing mesh of practices and material orders. Schatzki’s analysis reveals the advantages of this site ontology over the traditional individualist, holistic, and structuralist accounts that have dominated (...) social theory since the mid-nineteenth century. A special feature of the book is its development of the theoretical argument by sustained reference to two historical examples: the medicinal herb business of a Shaker village in the 1850s and contemporary day trading on the Nasdaq market. First focusing on the relative simplicity of Shaker life to illuminate basic ontological characteristics of the social site, Schatzki then uses the sharp contrast with the complex and dynamic practice of day trading to reveal what makes this approach useful as a general account of social existence. Along the way he provides new insights into many major issues in social theory, including the nature of social order, the significance of agency, the distinction between society and nature, the forms of social change, and how the social present affects its future. (shrink)

This article examines the proposition that a major cause of the major financial accounting scandals that received much publicity around the world was unethical leadership in the companies and compares the role of unethical leaders in a variety of scenarios. Through the use of computer simulation models, it shows how a combination of CEO's narcissism, financial incentive, shareholders' expectations and subordinate silence as well as CEO's dishonesty can do much to explain some of the findings highlighted in recent high profile (...) financial accounting scandals. Furthermore, it shows that the nature and impact of ethical leadership depends greatly on the institutional setting and can be expected to vary greatly by country and culture. In certain circumstances ethical leadership can have either a negligible or even opposite effect to that expected. (shrink)

This article reports on empirical research that establishes strong, positive, and significant correlations between the ethical issues of bullying and unfair supervision in the workplace and the presence of Corporate Psychopaths. The main measure for bullying is identified as being the witnessing of the unfavorable treatment of others at work. Unfair supervision was measured by perceptions that an employee's supervisor was unfair and showed little interest in the feelings of subordinates. This article discusses the theoretical links between psychopathy and bullying (...) and notes that little empirical evidence confirms the connection in management research. The sample of 346 Australian senior white collar workers used in the research is described as is the measure of behavior for identifying psychopaths. The findings are then presented and discussed showing that when Corporate Psychopaths are present in a work environment, the level of bullying is significantly greater than when they are not present. Further, that when Corporate Psychopaths are present, supervisors are strongly perceived as being unfair to employees and disinterested in their feelings. This article concludes that around 26% of bullying is accounted for by 1% of the employee population, those who are Corporate Psychopaths. (shrink)

This article leverages insights from the body of Adam Smith’s work, including two lesser-known manuscripts—the Theory of Moral Sentiments and Lectures in Jurisprudence —to help answer the question as to how companies should morally prioritize corporate social responsibility (CSR) initiatives and stakeholder claims. Smith makes philosophical distinctions between justice and beneficence and perfect and imperfect rights, and we leverage those distinctions to speak to contemporary CSR and stakeholder management theories. We address the often-neglected question as to how far a company (...) should be expected to go in pursuit of CSR initiatives and we offer a fresh perspective as to the role of business in relation to stakeholders and to society as a whole. Smith’s moral insights help us to propose a practical framework of legitimacy in stakeholder claims that can help managers select appropriate and responsible CSR activities. (shrink)

This short theoretical paper elucidates a plausible theory about the Global Financial Crisis and the role of senior financial corporate directors in that crisis. The paper presents a theory of the Global Financial Crisis which argues that psychopaths working in corporations and in financial corporations, in particular, have had a major part in causing the crisis. This paper is thus a very short theoretical paper but is one that may be very important to the future of capitalism because it discusses (...) significant ways in which Corporate Psychopaths may have acted recently, to the detriment of many. Further research into this theory is called for. (shrink)

In this study we analyze the overlapping perspectives of legitimacy theory, institutional theory, resource dependence theory, and stakeholder theory. Our purpose is to explore how these theories can inform and be built upon by one another. Through our analysis we provide a broader theoretical understanding of these theories that may support and promote social and environmental accounting research. This article starts with a detailed analysis of legitimacy theory by bringing some recent critical discussions on legitimacy and corporations in the management (...) literature into accounting research. The notion forwarded by legitimacy theory then serves as an overarching concept to examine the relationship between and among theories. We conclude that two theoretical considerations are important for future social and environmental accounting research. First, it must be acknowledged that some business entities initiate social activities based on direct interactions with stakeholders, whereas others may also undertake similar activities to manage their societal level of legitimacy. Second, from analyzing the perspectives of legitimacy theory, institutional theory, resource dependence theory, and stakeholder theory, it is possible to reach compatible interpretations of business social phenomena, and the selection and application of these theories should depend upon the focus of study. (shrink)

Humans are causing global climate change (GCC), and such climate change causes harms. Robin Attfield explained how individuals should be understood to be culpable for these harms. In this paper, I use a critical analysis of Attfield’s explanatory framework to explore further difficulties in accounting for corporate responsibility for these harms. I begin by arguing that there are some problems with his framework as it is applied to individuals that emit greenhouse gases (GHGs). I then show that it will be (...) very difficult to extend this framework to corporations. This is not a criticism of Attfield’s work (as he does not discuss corporate responsibility for those harms associated with GCC), but it will serve to show the difficulty in philosophically explaining corporations’ moral culpability when it comes to these harms. In fact, one positive conclusion of this paper is that it highlights a new area of concern that has been ignored in discussions of corporate responsibilities—that of mediated responsibilities—which is how Attfield understands our responsibilities regarding GCC. The discussion of this concern will draw attention to another positive conclusion of this paper: the harms associated with CO2 are very unlike the harms associated with other airborne-emitted substances, which will indicate that we will need new ways of understanding how individuals and corporations are philosophically responsible for these harms. The final positive conclusion of this paper will be a discussion of what the constraints should be on new approaches to explaining our culpability. (shrink)

The nature of stakeholder theory and its fundamental normative prescriptions are the subject of much confusion and academic debate. This article attempts to provide an account of both the fundamental normative implications of stakeholder theory and the theory’s range of application that both stakeholder advocates and critics can agree upon. Using exclusively the language of leading stakeholder theorists, the article identifies the essential prescriptions of the theory and the type of organizations to which stakeholder theory applies in the hope of (...) facilitating effective discussion and evaluation of the normative dimension of stakeholder theory. (shrink)

This paper offers a critique of sustainability reporting and, in particular, a critique of the modern disconnect between the practice of sustainability reporting and what we consider to be the urgent issue of our era: sustaining the life-supporting ecological systems on which humanity and other species depend. Tracing the history of such reporting developments, we identify and isolate the concept of the ‘triple bottom line’ (TBL) as a core and dominant idea that continues to pervade business reporting, and business engagement (...) with sustainability. Incorporating an entity’s economic, environmental and social performance indicators into its management and reporting processes, we argue, has become synonymous with corporate sustainability; in the process, concern for ecology has become sidelined. Moreover, this process has become reinforced and institutionalised through SustainAbility’s biennial benchmarking reports, KPMG’s triennial surveys of practice, initiatives by the accountancy profession and, particularly, the Global Reporting Initiative (GRI)’s sustainability reporting guidelines. We argue that the TBL and the GRI are insufficient conditions for organizations contributing to the sustaining of the Earth’s ecology. Paradoxically, they may reinforce business-as-usual and greater levels of un-sustainability. (shrink)

Corporate, Social, Ethical and Environmental Reporting should ideally discharge the accountability of an organisation to its stakeholders. Voluntary reporting has been characterised by a dearth of neutral and objective information such that the advocates of SEER recommend that it be made compulsory. Their underlying rationale is that legally specified disclosure requirements and enforcement mechanisms will enhance the quality of such reporting. This paper sets out to explore how realistic this scenario actually is, in view of the conflicting interpretations in the (...) literature on this subject. To that end, a survey of the reporting patterns of 78 of the largest Spanish companies between 2001 and 2003 examines the extent of their compliance with the ICAC-2002 standard, which obliged them to make environmental disclosures in their financial statements. The results suggest that progressive and improved regulation could increase the volume and quality of SEER disclosures. They also suggest, however, that persistent non-compliance means that the problems associated with voluntary disclosure still exist. Finally, through an impression management perspective, the study reveals, the diverse strategies, ranging from dismissal to concealment, that are employed by companies to avoid transparency. As regulation improves and enforcement expectations rise, it becomes more difficult to dismiss compulsory reporting norms. As a result, some firms engage in more complex concealment strategies to attain corporate legitimacy, depriving stakeholders of regulatory information. The latter point serves to reconcile apparently contradictory explanations in the literature as to whether legitimacy theory might explain partial compliance with SEER regulation. (shrink)