According to W. Edwards Deming, American companies require nothing less than a transformation of management style and of governmental relations with industry. In Out of the Crisis, originally published in 1982, Deming offers a theory of management based on his famous 14 Points for Management. Management's failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

Out of the Crisis

How to Do Things With Words

This paper is the latest in a short series on the origins, processes and effects of performativity in the public sector. Performativity, it is argued, is a new mode of state regulation which makes it possible to govern in an ‘advanced liberal’ way. It requires individual practitioners to organize themselves as a response to targets, indicators and evaluations. To set aside personal beliefs and commitments and live an existence of calculation. The new performative worker is a promiscuous self, an enterprising self, with a passion for excellence. For some, this is an opportunity to make a success of themselves, for others it portends inner conflicts, inauthenticity and resistance. It is also suggested that performativity produces opacity rather than transparency as individuals and organizations take ever greater care in the construction and maintenance of fabrications.

The teacher's soul and the terrors of performativity

The four Visegrad states — Poland, the Czech Republic, Slovakia (until 1993 Czechoslovakia) and Hungary — form a compact area between Germany and Austria in the west and the states of the former USSR in the east. They are bounded by the Baltic in the north and the Danube river in the south. They are cut by the Sudeten and Carpathian mountain ranges, which divide Poland off from the other states. Poland is an extension of the North European plain and like the latter is drained by rivers that flow from south to north west — the Oder, the Vlatava and the Elbe, the Vistula and the Bug. The Danube is the great exception, flowing from its source eastward, turning through two 90-degree turns to end up in the Black Sea, forming the barrier and often the political frontier between central Europe and the Balkans. Hungary to the east of the Danube is also an open plain. The region is historically and culturally part of western Europe, but its eastern Marches now represents a vital strategic zone between Germany and the core of the European Union to the west and the Russian zone to the east.

Economy and Society

This paper serves as an introduction to this special issue of Accounting, Auditing & Accountability Journal; an issue which embraces themes associated with social and environmental reporting (SAR) and its role in maintaining or creating organisational legitimacy. In an effort to place this research in context the paper begins by making reference to contemporary trends occurring in social and environmental accounting research generally, and this is then followed by an overview of some of the many research questions which are currently being addressed in the area. Understanding motivations for disclosure is shown to be one of the issues attracting considerable research attention, and the desire to legitimise an organisation’s operations is in turn shown to be one of the many possible motivations. The role of legitimacy theory in explaining managers’ decisions is then discussed and it is emphasised that legitimacy theory, as it is currently used, must still be considered to be a relatively under‐developed theory of managerial behaviour. Nevertheless, it is argued that the theory provides useful insights. Finally, the paper indicates how the other papers in this issue of AAAJ contribute to the ongoing development of legitimacy theory in SAR research.

Introduction: The legitimising effect of social and environmental disclosures – a theoretical foundation

Introduction Preface 1: The Audit Society: General Themes 2: The Rise of Audit 3: The Audit Explosion 4: Audit and the Dialectic of Regulatory Failure 5: Audit Knowledge and the Construction of Auditees 6: Beyond Audit, Towards Trust Notes Bibliography

The audit society : rituals of verification

The audit society

Offers a comprehensive critique of the spread of auditing in both the public and private sectors and shows how to achieve a better balance between audits and other forms of accountability. Michael Power is Professor of Accounting at the LSE. ‘A rare attempt to stand back and question the very notion of auditing and the place it has assumed in our society.’ Financial Times

The Audit Explosion

1. Organized Uncertainty: An Introduction 2. Turning Organizations Inside Out: The Rise of Internal Control 3. Standardizing Risk Management: Making Up Processes and People 4. Putting Categories to Work: The Invention of Operational Risk 5. Governing Reputation: The Outside Comes In 6. Making Risk Auditable: Legalization and Organization 7. Designing a World of Risk Management

Organized Uncertainty: Designing a World of Risk Management

This essay discusses an important series of formative contributions to contextualist and critical research in auditing. A small number of relatively recent papers question rationalized accounts of the audit process and explore the complex ‘back stage’ of practice. These papers are interpreted as contributions to our understanding of the production of legitimacy around four substantive themes: the audit process and formal structure; auditing as a business; working papers and image management; new audits. The papers also point to the socially constructed nature of professional inference and suggest a fruitful basis for taking these research efforts forward.

Michael Power

Papers

The audit society : rituals of verification

The audit society

The Audit Explosion

Organized Uncertainty: Designing a World of Risk Management

Auditing and the production of legitimacy