Review(s) of: Restorative Justice and Responsive Regulation by John Braithwaite (2002) New York: Oxford University Press. 314, pp., $150, ISBN 019513639.

Restorative Justice and Responsive Regulation [Book Review]

The eighth in a series of articles providing basic information on legal issues facing people and businesses that operate in computing-related markets discusses some issues that can occur when doing business in the People's Republic of China.

Doing Business in China

This paper demonstrates the political perspective of corporate social responsibility (CSR) disclosures and, drawing on Weber’s notion of traditionalism, seeks to explain what motivates companies to make such disclosures in a traditional setting. Annual reports of 23 banking companies in Bangladesh are analysed over the period 2009–2012. This is supplemented by a review of documentary evidence on the political and social activities of corporations and reports published in national and international newspapers. We found that, in the banking companies over the period of study, apparently neutral, corporate, philanthropic activities disclosed and promoted in CSR reports are inextricably linked to powerful leaders’ personal projects and the ruling party’s agendas. We have demonstrated elements of traditional societies, including personal loyalty and the public display of loyalty, the master–servant relationship, and obedience to personal rather than formal authority, provide an understanding of why banks (with or without explicit political linkages with the ruling party) have employed politically charged CSR disclosure strategies. The paper contributes to disclosure studies where political motivations of corporate disclosure rarely discussed. The paper extends the debate on political CSR by demonstrating that the role of family and familial values at the organisational and national levels may be much more important when it comes to CSR disclosure and activities.

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Corporate Social Responsibility Disclosures, Traditionalism and Politics: A Story from a Traditional Setting

Corporate social responsibility disclosures, traditionalism and politics: A story from a traditional setting

In the current study, we examine the changes in disclosure practices on compliance and the fight against corruption at Siemens AG, a large German multinational corporation, over the period 2000–2011 during which a major corruption scandal was revealed. More specifically, we conduct a content analysis of the company’s annual reports and sustainability reports during that period to investigate the changes of Siemens’ corruption and compliance disclosure using both quantitative and qualitative methods. Through the lens of legitimacy theory, stakeholder analysis, and organizational facades, we find evidence that Siemens changed its compliance and corruption disclosure practices to repair its legitimacy in the wake of the 2006 corruption scandal. We analyze these strategies more closely by using the rational, progressive, and reputation facades framework (Abrahamson and Baumard in The Oxford Handbook of Organizational Decision Making, pp 437–452, 2008). Our primary findings suggest that the annual reports show peaks of disclosure amounts on corruption and compliance disclosures earlier than sustainability reports, which can be partly explained by analyzing the disclosures made about—and to—the different stakeholder groups. We find that the annual report focuses more on internal stakeholders such as employees, while the sustainability report focuses more on external stakeholders such as suppliers. We also find that the company uses the facades differently depending on which report is being analyzed.

Disclosure Responses to a Corruption Scandal: The Case of Siemens AG

Anti-bribery disclosures: A response to networked governance

This paper investigates the association between global community concerns about bribery activities and anti-bribery disclosure practices by two Chinese telecommunication companies operating internationally, namely China Mobile and ZTE. Based on content analysis of annual reports and global news media articles over a period of 16 years from 1995-2010, the findings suggest that the changes in the level of disclosures by the two major Chinese telecommunications companies were closely associated with the level of international concerns over bribery practices within the Chinese telecommunications industry. This finding indicates that the companies adopt anti-bribery disclosure practices in order to minimise the gap of trust (Social capital) between companies themselves and global stakeholders. In this paper we argue that, for domestic companies in China, culturally constructed social capital, such as guanxi, creates a level of trust between managers and their stakeholders, which obviates the need for managers to disclose anti-bribery performance information. However, for companies operating internationally, as social capital is inadequate to bridge the gap of trust between managers and global stakeholders, managers use disclosures of anti-bribery performance information as a way to minimise such a gap.

Corporate disclosure in relation to combating corporate bribery: a case study of two Chinese telecommunications companies

Purpose: The purpose of this paper is to examine the influence of media scrutiny and a networked governance of National and International Government Organisation (IGOs) on the extent of voluntary corporate disclosure in the global telecommunication sector in response to incidents of corporate bribery. Design/Methodology/Approach: An anti-bribery disclosure categorisation index was developed from various anti-bribery guidelines developed by IGOs to collect and analyse the data used in this study. This study relied on a content analysis of news media articles, corporate annual reports and standalone sustainability reports (from 1995-2010) of two global telecommunication companies [Alcatel-Lucent — a French based global company; Siemens AG — a German based global company], to understand corporate performance disclosures on combating corporate bribery. Findings: The findings underpinned by a joint consideration of legitimacy theory, media agenda setting theory and responsive regulation theory, show that the change in corporate disclosures on combating bribery were positively associated with the extent of negative media attention and the movement of IGOs in combating corporate bribery in global corporations. A system of networkedgovernance with IGOs appears to have a significant influence on international business practice. Originality/Value: In the context of the literature on social accounting, this is believed to be the first known study to document and understand the trend in anti-bribery related performance disclosures and the influence of external stakeholders on such practices. *Corresponding author School of Accounting, Economics and Finance, Deakin University, 221 Burwood Highway, Burwood, Victoria 3125, Australia: Ph: 61 3 9244 6523; Fax: 61 3 9244 6283. Email: azizul.islam@deakin.edu.au

Corporate Disclosure on Combating Bribery: A Study of Two Global Companies in the Telecommunication Industry

The diffusion‐adoption of accrual accounting in Sri Lankan local governments

PurposeThe purpose of this study is to evaluate the implementation of accrual accounting among two layers of government in Sri Lanka. This study examines the process of diffusion and application among and between provincial governments and local governments to assess the barriers and enablers on the implementation of accrual accounting.Design/methodology/approachThe study relies on data collected through interviews with 30 accounting and finance personnel from all levels of government active in the diffusion process. Interviews were conducted to gather and assess their insights and perceptions on the diffusion of accrual accounting. The data are examined initially using Rogers (1995) “diffusion of innovation” theory to explain the factors influencing the diffusion and adoption of accrual accounting at two levels of government but the analysed primarily by comparing the perspectives of respondents between the different layers of government.FindingsThe findings show that the adoption of accrual accounting was more effective among local governments compared with provincial governments. The lack of effective communication and engagement from the leaders of the innovation failed to persuade provincial government adopters of the true value of the accounting reform. This is contrasted with local governments who openly adopted accrual accounting but not in response to pressure from provincial government, who have oversight responsibility for local governments, but in response to funding protocols initiated by the central government to account for grant funding.Research limitations/implicationsThe findings of the study should be interpreted with caution as the data are obtained from the narrow cohort of accounting and finance professionals and may not reflect the views or experience of all stakeholders involved in the diffusion of accrual accounting.Originality/valueThe paper contributes to the diffusion of accounting innovation literature by examining the role of key players in different layers of government, particularly visible among provincial governments where the lack of engagement delayed its commitment to the implementation of accrual accounting.

Thusitha Dissanayake

Papers

Anti-bribery disclosures: A response to networked governance

Corporate disclosure in relation to combating corporate bribery: a case study of two Chinese telecommunications companies

Corporate Disclosure on Combating Bribery: A Study of Two Global Companies in the Telecommunication Industry

The diffusion‐adoption of accrual accounting in Sri Lankan local governments

The diffusion of accounting reform in Sri Lanka: an analysis of two layers of diffusion among three levels of government