Showing papers in "Sustainability Accounting, Management and Policy Journal in 2018"

Sustainability reporting in the aviation industry: worldwide evidence

Abstract: The purpose of this study is to investigate empirically what affects Global Reporting Initiative (GRI)-based sustainability reporting and its relationship with firm performance in the aviation industry between 2006 and 2015,The authors derived data from the GRI Sustainability Disclosure Database and Thomson Reuters EIKON; from the former, they downloaded GRI-based reports, and from the latter, they obtained financial data The authors performed four-level analysis – report existence, report count, application level of report and firm performance –using various regression models (ie logistic regression, Poisson regression, ordered logistic regression and ordinary least squares regression),First, the authors based the analysis on the existence of GRI-based sustainability reports, which showed that firm size and leverage are positively associated with sustainability reporting Contrary to expectations, ownership was negatively associated Furthermore, free cash flow per share, growth and profitability do not have significant effects on sustainability reporting, in contrast to expectations Subsequent analysis was based on report count (number of total published reports within the examination period) and application levels of reports Compared to the preceding analysis, there were no notable surprises In addition, we found evidence that growth is negatively associated with application levels of reports (partially supported) Thus, report existence, report count and application level results largely confirm each other Finally, the authors tested the effect of sustainability reporting on firm performance, which did not produce significant results Thus, in the aviation industry, sustainability reporting does not play a significant role in enhancing firm performance,First, the findings show that larger and highly leveraged aviation firms can reduce agency and legitimacy costs through sustainability reporting Surprisingly, the same assumption did not hold for ownership structure as the firms with diffused ownership base tend not to publish sustainability reports Thus, boards are advised to establish and improve monitoring mechanisms in these types of firms Second, although the number of aviation companies publishing separate sustainability reports has increased significantly over the years, almost half of the companies are not still producing sustainability reports Hence, if the aviation industry believes the merits of engaging in sustainability issues and sincerely desires to enhance its sustainability reporting practices, the authors can suggest the following initiatives Boards might encourage companies to incorporate sustainability issues into company operations by assigning the necessary financial and human resources The boards might also establish a separate sustainability committee or department, which could focus on sustainability issues and reporting practices Regulatory bodies could also encourage aviation companies to act in a socially and environmentally responsible manner by proposing legal requirements and providing guidance,Relevant civil organisations and environmental activists might undertake more active roles to enhance awareness of sustainability issues in the aviation industry,Most of the prior studies did not focus on standalone GRI-based sustainability reports, and they were conducted on limited samples and not the aviation industry in particular This study aims to fill these gaps empirically by establishing testable hypotheses and attempting to demonstrate the validity of theoretical relationships in a wide range of data and among aviation companies worldwide In this sense, this study is unique in what it undertakes This study also tests whether sustainability reporting impacts firm value in the aviation industry which, to the best of the authors’ knowledge, has not been examined in prior studies to this extent

Carrot or stick: CSR disclosures by Southeast Asian companies

Abstract: Motivated by legitimacy theory, this paper aims to examine comprehensively corporate social responsibility (CSR) disclosure in Southeast Asian (Association of Southeast Asian Nations [ASEAN]) countries with the aim of disentangling whether such disclosures are the result of a proactive stance or a reaction to regulations.,After a content analysis of CSR stand-alone reports that relies on the Global Reporting Initiative as the basis for comparison, a multivariate analysis is carried out while controlling for firm-specific incentives and industry, country and year fixed effects.,The paper finds that CSR disclosure increased across the entire ASEAN. Although this increase cannot be directly ascribed to the introduction of regulations in Indonesia and Malaysia, the latter may have impacted choices of disclosure media. In countries where reporting requirements have become mandated, mandatory reporters show low levels, and voluntary reporters high levels, of CSR disclosure. The paper also finds that the attainment of CSR awards is related to disclosure. Additional analyses reveal a substitution effect between voluntary and mandatory incentives in countries with high levels of law enforcement.,The evidence suggests that the introduction of regulations can be effective in improving the level and breadth of CSR reporting only in the presence of institutions that ensure the enforcement of the disclosure regulations.,The evidence suggests that organizations are reluctant to report on issues such as child labor, human rights and corruption. Organizations opportunistically employ related disclosure strategies that deviate from the underlying CSR performance.,The paper analyzes not only the level and breadth of CSR disclosure but also the motivation for its use across the still under-investigated ASEAN area, thus allowing an examination of the influence of institutional incentives above and beyond the firm-specific factors that drive CSR activities.

Gender diverse board and earnings management: evidence from French listed companies

Abstract: The purpose of this paper is to investigate the influence of board gender diversity on earnings management level and strategy.,This study is conducted in the French context where firms are pressured since 2010 to appoint more women on boards. More specifically, this research is based on a sample of 85 companies listed in the SBF120 over 2010-2014. A number of econometric techniques are used including generalized least squares to test the panel regressions.,The results suggest that women on boards are effective in their monitoring role. Indeed, the findings show a significant negative effect of board women presence on earnings management practices level. However, there is no empirical evidence that board gender diversity affects the earnings management strategy. Moreover, the results reveal that some control variables influence significantly the earnings management level and strategy.,The findings support the efforts made by French political bodies to increase gender diversity on corporate boards, and might inspire political actors of other countries to take initiatives to regulate the promotion of women’s appointment on boards of directors.,This paper contributes to the issue of discrimination against women in law and in practice. Indeed, the findings highlight the beneficial effects of women participation in power and decision-making positions.,This research contributes to the debate around gender diversity on boards. Most prior studies that have analyzed the relationship between gender diversity and earnings management were conducted in a voluntary context of appointing women on boards. This paper extends prior research by addressing this issue differently and in a regulated context: where the government set mandatory quotas for female board representation.

The influence of social responsibility on employee productivity and sales growth: Evidence from certified B corps

Abstract: The purpose of this paper is to examine whether B corps’ (for-profit entities whose owners voluntarily commit to conduct business in a socially responsible manner, beyond traditional CSR, that generates profits, but not at the expense of stakeholders) commitment to social issues influences two aspects of financial performance: employee productivity and sales growth.,This paper is an exploratory analysis of B corps. This paper examines B corps with B Lab’s B Impact Assessment reports and PrivCo financial data, for descriptive information. This paper also analyzes the financial impact of obtaining and reporting on excellence in both employee and consumer focus, as well as the differences in financial growth between B corps and non-hybrid peers.,Overall, results suggest that, among B corps whose treatment of employees (consumers) is recognized as an “area of excellence,” employee productivity (sales growth) is significantly higher. Additionally, sales growth is significantly higher for B corps relative to their peer, non-hybrid, matched firms.,Results from this study inform states considering the adoption of the B corp legal status – this legal status does not hinder firm profitability, but instead enhances long-term firm value while allowing firms to beneficially affect their communities, consumers, employees and the environment.,Results from this study provide important insights regarding the current paradigm shift from the traditional business focus on profit maximization to a fruitful coexistence of profits with social interests and initiatives, within a structure of dissolving national boundaries and increasingly divergent logics.,This paper provides an initial empirical examination of B corp performance.

Does the level of assurance statement on environmental disclosure affect investor assessment

Abstract: The purpose of this study is to examine whether different levels of assurance statements of environmental disclosures affect investment choices in the French context where environmental assurance was voluntary until 2012 and became regulated and mandatory since then.,The authors conducted an experiment during the voluntary context – which represents the vast majority of countries – on a sample of 108 financial analysts.,Environmental disclosure has a positive impact on investment recommendations. More surprisingly, financial analysts are less likely to give recommendations in favor of a company that displays environmental disclosure with low-level assurance than for a company with no assurance statement at all.,When assurance is voluntary and there are at least two levels, this study results suggest that firms should avoid selecting the lowest level of assurance because it negatively affects investor decisions. From this perspective, firms should devote sufficient effort and resources to obtain at least Level 2 environmental disclosure assurance.,Given the recommendations made by financial analysts, the authors could expect that firms may prefer to engage in a higher level of assurance or to provide no assurance rather than minimize their financial efforts and resources to select a lower level of voluntary assurance regarding environmental disclosure.,This study has implications for the voluntary assurance practices of environmental disclosure and can provide support to regulators to promote higher standards in environmental assurance. It documents the relevance to increase the level of requested assurance for environmental disclosure.,To the best of the authors’ knowledge, very few studies have examined the additional effect of assurance on environmental disclosure in investors’ decisions. The experiment is conducted with financial analysts in the context of voluntary assurance.

Firm value and social contribution with the interaction of corporate governance: Social contribution value per share

Abstract: This study aims to investigate the relationship between corporate social contribution measures and investors’ reaction under the effect of corporate governance for firms listed in China, the largest emerging economy in the world. Corporate social contribution is examined from an informative perspective by using a financial indicator – social contribution value per share (SCVPS) brought up by the Shanghai Stock Exchange in 2008.,Data are obtained from two channels: financial information during 2007-2015 generated from database and social accounting information manually collected from the 2007-2015 annual reports and social reports.,It is predicted that investors’ reaction toward corporate social contribution becomes stronger for companies with higher corporate governance quality.,This paper is one of the first to use Chinese SCVPS data to indicate the informativeness of social contribution toward firm value. It can serve as a valuable reference to both investors and companies in terms of the issue of social contribution.,The study highlights the importance of social contribution on firm value by using an empirical approach in the Chinese market. The study can be used as a reference for many other developing countries in the world.,The findings of this study can provide guidance to investors on how to evaluate a firm’s social performance and encourage companies to improve the transparency of their social reporting, as well as the quality of corporate governance.

Adoption of environmental management tools: the dynamic capabilities contributions

Abstract: This paper aims to analyze the organizational capabilities involved in the adoption of environmental management tools in eight large French firms. The analysis also examines the antecedents that contributed to the emergence of those capabilities and the consequences of their involvement in terms of environmental management.,To analyze the organizational capabilities deployed when environmental management tools are adopted, this paper takes an exploratory approach based on a qualitative study of eight large French firms.,The findings show how organizational capabilities, dynamic and ordinary, are operationalized in the adoption of environmental management tools. This operationalization is made possible by internal and external antecedents and simple and complex routines. The findings also identify two possible configurations of organizational capabilities, each one leading to a specific form of environmental management. The first configuration leads to stand-alone environmental management systems, while the second succeeds in engendering integrated management systems. This study shows that this difference is explained by heterogeneous endowments in terms of antecedents across firms.,The study provides useful information for managers about the conditions that favor and facilitate adoption of environmental management tools and the ways these conditions operate.,The study illustrates the impact of society on large firms’ adoption of certain environmental management practices. It shows that external visibility – which has created strong societal pressure – is one of the external antecedents that led eight large French firms to develop specific organizational capabilities.,In analyzing the antecedents, routines and capabilities involved in the adoption of environmental management tools, the study adds some original, innovative contributions to current knowledge on the conditions for adoption of such tools.

Assurance reports included in the CSR reports of French firms: a longitudinal study

Abstract: Purpose This paper aims to examine the practice of sustainability assurance and in particular the content of the assurance reports disseminated in the corporate social responsibility (CSR) reports. The objective of the research is to study the evolution of the content of the assurance reports of French companies. Have the reports evolved as a result of the standardization and regulation of the audit? Design/methodology/approach A longitudinal study has been carried out on French companies publishing CSR reports and their sustainability information has been checked for several years. The sample is composed of 19 listed French companies and 135 assurance reports over a period from 2001 to 2015. Findings The results highlight a change in the content of assurance reports according to standardization and regulatory of sustainability auditing. The content evolves from a generic discourse to a normative discourse notably because of the realization of a majority of assurance missions by accounting professionals and the increasing use of ISAE 3000 as well as by the introduction of the Grenelle II Law. Practical implications This paper shows how assurance reports have evolved over time in a particular regulatory context of the introduction of a law specific to assurance, Grenelle II Law, using a sample of French companies. Originality/value Although some studies have attempted to provide a historical analysis of this practice, no research has focused on longitudinal analysis in a particular context of introduction of a law specific to the assurance mission. The lack in previous literature resides in the lack of longitudinal analysis of assurance reports in the light of the evolution of the normative and regulatory frameworks.

The adoption of CSR practices in Egypt: internal efficiency or external legitimation?

Abstract: This study aims to focus on the factors triggering the adoption of corporate social responsibility (CSR) practices in a developing country context. The authors examine whether the adoption of CSR practices is triggered more by internal efficiency forces or external legitimation forces. As early adoptions of new systems are more likely driven by efficiency motives, the authors argue that CSR practices in developing countries at nascent stages are more likely adopted for efficiency rather than legitimation reasons.,A cross-sectional sampling design was used to collect data on the CSR practices of top listed Egyptian firms and multinationals operating in Egypt. The sample size is selected based on a purposive criterion sampling method. The final sample size consists of 110 companies operating in Egypt, which includes 54 local and 56 multinational companies. To examine the relationship between the explanatory variables of the study and CSR, multiple regression analysis was used.,Using data from 110 top listed local companies and multinational firms operating in Egypt, the results show a significant influence of internal corporate governance on CSR. Yet, the effects of external factors, specifically legal regulations and stakeholder pressures, on CSR are perceived to be insignificant. This finding contrasts studies from industrialized countries in the Western world where firms are often motivated to invest in CSR by external forces.,The results indicate that the adoption of CSR practices in large firms in Egypt is driven more by internal efficiency gains rather than external legitimacy pressures. The study thus presses the need for the effective enforcement of governmental laws and regulations to strengthen external institutional pressures and demands for socially responsible behavior.,The results of the study indicate a perceived absence of stakeholder pressure for CSR practices. As such, raising awareness for corporate accountability amongst Egyptian consumers, employees and the general public would increase corporate incentives to improve their social and environmental performance. In addition, the concept of CSR must be cultivated in the organizational culture where high value is placed on corporate ethics and managerial values.,This study provides insights about the predominant drivers of CSR in Egypt on two different levels; the organizational and the business environment. Salient links between CSR, internal corporate governance mechanisms and external drivers such as external stakeholder and legal pressures are explored. The results of the study also emphasize the importance of internal corporate governance mechanisms and how it is perceived to be the main driver of CSR in Egypt as opposed to external influences.

Communicating corporate social responsibility (CSR) in the coffee industry: An examination of indicators disclosed

Abstract: The purpose of this paper is to identify the sustainability indicators disclosed by ten British Coffee Association corporate members in their sustainability reporting and examine whether the indicators correspond to the sustainability challenges faced by the coffee industry, as identified in the literature.,A normative account of sustainability challenges was developed based on a review of extant literature. A content analysis of the sustainability reports and/or Webpages of the companies was conducted to identify quantitative and qualitative sustainability indicators. Frequency and thematic analysis enabled the subsequent examination.,A total of 94 sustainability indicators (44 environmental, 30 social and 20 economic) were identified in company reporting. The indicators correspond to the sustainability challenges identified in the literature. In addition to broad challenges, indicators are used to communicate specific issues. A significant number (47) of single-use indicators were identified, communicating less frequently reported challenges. Some companies account for sustainability from bean to cup, attributed to crucial differences in organisational characteristics (degree of vertical integration). Furthermore, the findings highlight the discretionary nature of sustainability reporting, finding considerable variance in indicators disclosed.,As this paper relies on self-reported corporate disclosures, it critically examines the reporting practices of organisations, as opposed to verifying the activities associated with their claims. The authors minimised subjectivity by reducing the interpretation of what constituted “an indicator” using a clearly agreed definition and multiple rounds of coding.,This paper examines the reporting practices of organisations, providing a useful insight and a competitor benchmark. By comprehensively examining the sustainability challenges faced by the coffee industry, it offers “sustainability context” that can be used by organisations to improve their accounting and reporting practices.,This paper acknowledges and addresses social initiatives that call for the systematic development of practical and appropriate sustainability indicators that can become embedded in policy and decision-making, affecting the measurement of progress and responses to important sustainability challenges.,This paper presents the first systematic review of sustainability indicator disclosure in an industry that faces significant sustainability challenges.

Voluntary corporate social responsibility disclosure and religion

Abstract: Purpose This study examines the relation between voluntary corporate social responsibility (CSR) disclosure and the local religious norms of firms’ stakeholders. Little is known about how these local norms (measured at the county level) affect firms’ disclosure practices and firm value, especially voluntary disclosure on climate change and environmental and social responsibility. Design/methodology/approach Poisson regression models test for a significant relation between firms’ voluntary CSR disclosure intensity and the local religious norms of firms’ stakeholders. Also, an event study tests whether the local religious norms affect investment returns. The data analyzed are extracted from the archive of CSRwire, a prominent news organization that distributes CSR news to investors and the public worldwide. Findings The study finds that firms in high adherence (high churchgoer) locations disclose CSR activities less frequently, and firms in high affiliation (a high proportion of non-evangelical Christian churchgoers) locations disclose CSR activities more frequently. The study also finds that managers make firm-value-increasing CSR disclosure decisions that cater to the religious and social norms of the local community. Practical implications The results imply that managers self-identify with the local religious norms of stakeholders and appropriately disclose less about CSR activities when religious adherence is high and when religious affiliation (the ratio of non-evangelicals to evangelical Christians) is low. The authors find this noteworthy because religious bodies often call for greater CSR involvement and disclosure. Yet, at the firm level, it would appear that local community religious norms also prevail, as it is shown that they significantly explain firms’ CSR disclosure behavior, implying that managers cater to local religious norms in their disclosure decisions. Social implications The findings suggest that managers vary the timing and intensity of voluntary CSR disclosure consistent with stakeholders’ local religious and social norms and that it would be costly and inefficient if the firms were to expand CSR disclosure without considering the religious norms of their local community. Originality value This is the first large-sample study to show that local religious norms affect CSR disclosure behavior. The study makes use of a unique and novel data set obtained exclusively from CSRwire.

Setting the research agenda for measuring sustainability performance – systematic application of the world café method

Abstract: The purpose of this paper is to first present potential areas of research for measuring sustainability performance that emerged in a joint researcher–practitioner workshop at the 19th Environmental and Sustainability Management Accounting Network Europe Conference, organized in cooperation with the World Business Council for Sustainable Development. Second, the methodology applied to gain these insights, the world cafe approach, is critically reviewed.,The applied method, a world cafe approach, facilitates collaborative dialogue and was used in the workshop to uncover underlying research themes. A generalized process flow diagram for a world cafe is presented, highlighting critical aspects that can guide researchers considering the use of the world cafe method. The results are structured by means of the 5 W (who, what, where, when, why) and 2 H (how) questions, also known as the elements of circumstance.,Key topics discussed by conference attendees are identified and an overview of potential areas of research are established concerning “measuring sustainability performance”, with a topical focus on impact measurement and value of sustainability. Furthermore, based on the topics identified by practitioners and researchers, this paper develops a list of questions that can guide future research. Finally, the world cafe method as a means of generating insights into complex topics such as sustainability performance is evaluated.,The list of research questions identified in this paper can serve as guidance for researchers for selecting relevant, practice-oriented research topics. The value of the world cafe method as an approach to facilitating the generation of participatory and collaborative insights was confirmed for sustainability management. The generalized process flow diagram can act as a starting point when considering the world cafe method for facilitating large transdisciplinary groups.,The world cafe is a method for facilitating practitioners and researchers exchange, and thereby presents an opportunity for spanning the research–practice gap. By bringing practitioners and researchers together to identify research areas, future research is more likely to have positive social implications.,The paper presents a recent interpretation of future research gained from a large number of sustainability professionals, including practitioners and researchers, by bringing them together using a world cafe. The world cafe is a valuable method for a collaborative set-up with immediate feedback loops, which encourages dialogue, in contrast to surveys or individual interviews, on future developments in the field.

What energy management practice can learn from research on energy culture

Abstract: This investigation aims to reframe the sizeable literature on barriers and drivers for energy efficiency measures (EEMs) and the phenomenon of the energy efficiency gap. The authors identify a gap between academic methods and industrial needs, as well as a neglect of the cultural dimension, despite its considerable impact. On the basis of this insight, the purpose of this paper is to integrate all of the various influences on industrial energy behavior previously identified in the literature in a refined energy cultures framework.,This paper includes a systematic literature review of research in the field of energy management, energy efficiency and cultural aspects within barriers and drivers of energy behavior. The authors select and refine an existing energy cultures framework for the industrial context. To meet industrial needs, the authors applied an ontology mapping of its core elements onto an international standard common for industrial energy management practice.,First, the authors present a refined framework for industrial energy cultures incorporating past barriers and drivers as factors. The framework enables an evaluation of attitude and behavioral aspects, underlying technologies, organizational culture and actions related to energy as a system of interdependencies. Second, the factors are ranked on the basis of the number of appearances and empirical metadata. Economic aspects such as “purchase, installment and hidden costs”, “general investment and risk behavior” and “regulatory conditions” are the highest ranked factors, but “existing knowledge about EEM”, “hierarchy approach: top down” and “environmental concerns” follow closely and represent cultural aspects, which are still underrated. Third, while illustrating a successful mapping onto a standardized process of continuous improvement, the authors also argue for heightened academia–practice efforts.,Reframing the energy efficiency gap as a problem of what aspirations play a role, what technology is chosen and how technologies are used should increase the level of implementation of EEMs in the real business world. Introducing the refined energy cultures framework serves as a starting point for future transdisciplinary collaboration between academia and practice.,Targeting the energy efficiency gap is an essential part of the sustainable development goals. The refined energy cultures framework allows for a better understanding of the industrial energy behaviors that are responsible for a significant share of a company’s success. The introduction of energy cultures serves as a starting point for future scholarly research within sustainability management accounting.,The investigation combines existing research streams, their concepts and their results about cultural aspects related to energy efficiency for both academics and practitioners. This review is the first to capture all of the various factors analyzed in academic literature using the energy cultures framework as a basis. The authors add to the theoretical development of that framework with its application to the industrial context. This is identified as a gap. Its refinement helps to holistically understand barriers and drivers of industrial EEMs to support its practical implementation.

LGBTI staff, and diversity within the Australian accounting profession

Abstract: Purpose Large accounting firms lay claim today to a broad focus on staff diversity and inclusion. Related initiatives focus on gender, culture, age and sexuality. This paper aims to seek insight from publicly available discourse provided by the “Big 4” in Australia (Deloitte, Ernst and Young, KPMG and PwC), along with two second-tier firms, into the nature and drivers of diversity initiatives for lesbian, gay, bisexual, transgender and intersex (LGBTI) staff. Design/methodology/approach Web-based discourse provided as at May 2017 is examined and analysed. Findings All six firms provided a range of related disclosures, suggesting that a cultural shift for LGBTI staff was underway. Detail provided on actual policies and procedures was limited, and a struggle was suggested, between balancing the needs of diverse staff, with concerns for some, perhaps, more conservative clients. Some repositioning of arguments was suggested, focussed on shifting responsibility to staff and on shifting the object of celebration from staff to the firm. Research limitations/implications This study is limited to an interpretation of carefully constructed publicly disclosed statements. Further studies could explore the lived experience of these apparent changes with staff. Practical implications Recruitment and staff retention continue to be on-going challenges within the accounting profession. This study provides insight into initiatives targeted to support LGBTI staff. Social implications Availing space to bring ‘whole selves’ into the workplace is an important element of creating a pleasant, comfortable and engaging environment for staff. This study provides insight into the perspective of employers on the importance of such initiatives. Originality/value Little attention has been directed to exploring sexual diversity in the workplace or to sexuality within accounting studies.

Integrated or non-integrated reports: French listed companies at a crossroads?

Abstract: The purpose of this paper is to examine the degree of integration of reference documents (RD) produced by French CAC 40 listed companies to determine whether they have initiated the adoption of an integrated reporting (IR) approach. In particular, the author has examined how the French regulation shapes the integration of sustainable development issues within the business practices of these companies.,On the basis of content analysis of 279 RD over nine years (2006-2014), the author has examined the extent and the quality of the IR practice with the help of three criteria (strategy, governance and commitment of stakeholders). Evidence of the existence of an integration practice is thus sought using 34 CAC 40 companies having the obligation, according to various regulations, to include in their management report information relating to questions of sustainable development (SD).,There is a variation between the CAC 40 companies regarding integration of SD issues in the core business. As a result of the analysis, the author has observed that 41% of companies in our sample integrate issues of SD to more than 90%, whereas other companies consider concerns relating to SD as subsidiary. All of the companies (100%) have put in place policies to manage the environmental and social governance aspects, assuming recognition of the importance of these issues for the companies. Yet only a few (41%) went further than the mere declaration of intent and have revised their business processes to reflect the taking into account of all the factors which contribute to the process of value creation. On the whole, the principle of connectivity that perfectly defines the integrated character of a report is only moderately respected by the companies in the sample.,The methodology deployed in this study to identify the integration practices of listed companies in France can be replicated by other researchers who would endeavor to assess the IR practices of companies from other countries. For regulatory agencies, this study provides evidence on how the various regulations that make up a national business system shape company reporting and allow informing different categories of stakeholders.,This research provides the empirical result of a longitudinal study of the degree of integration of RDs in the context of an environment regulating non-financial reporting. The construction of a set of criteria characterizing the degree of integration of SD issues at the heart of businesses is another innovative approach of this study.

The potential for ‘boundary-spanning organisations’ in addressing the research-practice gap in sustainability accounting

Abstract: The purpose of this paper is to understand the role of boundary-spanning organisations as intermediary institutions potentially able to close the gap between applied research and practice in sustainability accounting.,A review of the literature reveals that boundary organisation theory provides a potential way of understanding the role of boundary-spanning organisations in the context of the research–practice gap. The theory is applied in the context of three cases of potential boundary-spanning organisations involved with sustainability accounting – Chartered Accountants in Australia and New Zealand, the World Business Council for Sustainable Development and the International Federation of Accountants.,Findings from the three cases, which consider the application of boundary organisation theory, indicate the potential for professional accounting associations to act as sustainability accounting boundary-spanning organisations has not been realized for four main reasons. These relate to the need for finer granularity in relation to boundary objects and problem-solving; uncertainty about the range of parties to be involved as boundary-spanning organisations; the importance of reconciling views about different incentives for academics and practitioners in the sustainability accounting space; and the necessity for collaboration with other boundary-spanning organisations to address the transdisciplinary nature of sustainability accounting.,Development of a way of seeing the relationships between academics and practitioners in the context of sustainability accounting has two messages for practice and practitioners. First, with such complex and uncertain issues as sustainability accounting, a transdisciplinary approach to resolving problems is needed, one which involves practitioners as integral and equal members of research teams. The process should help bring applied academic and practitioner interests closer together. Second, it has to be recognised that academics conducting basic research do not seek to engage with practitioners, and for this group, the academic–practitioner gap will remain.,Two main social implications emerge from the application of boundary organisation theory to analyse the academic–practitioner gap in the context of sustainability accounting. First, development of boundary organisations is important, as they can play a crucial role in bringing parties with an interest in sustainability accounting together in transdisciplinary teams to help solve sustainability problems. Second, collaboration is a foundation for success in the process of integrating applied researchers and practitioners, different disciplines which are relevant to solving sustainability problems and collaboration between different boundary spanning organisations with their own specialised foci.,This paper considers boundary organisation theory and the role of boundary-spanning organisations in the context of the complex transdisciplinary problems of sustainability accounting.

Hybrid organisations contributing to wellbeing in small Pacific Island countries

Abstract: This paper aims to examine the contributions of hybrid organisations to wellbeing in small Pacific island countries.,The concept and different forms of hybrid organisations are examined, and then the operation and contributions to wellbeing of three Fijian hybrid organisations are considered.,Hybrid organisations in this region operate with a commitment to the common good and an ethic of care. Fijian hybrid organisations improve social and economic wellbeing for individuals, families and communities by providing employment, schools and training facilities, financial and support services, sustainable agriculture projects and facilitating networking. These services improve individual and community social and economic wellbeing, build resilience, add to personal and family security, offer opportunities for the future, advance leadership skills and sustain the environment. Commercial activities that support these organisations in their wellbeing endeavours include product sales, service fees, project levies and investment income.,Generalisability beyond the Pacific region is not assured, as this review only examines hybrid organisations in small Pacific island countries.,Hybrid organisations offer an alternative pathway to achieve a sustainable enterprise economy, an approach that is more culturally relevant for the Pacific region. Policies to nurture the development of these organisations, and research into the startup, operation, impact and effectiveness of different hybrid organisation models would help to improve wellbeing in this region. International charities and aid agencies could advance the wellbeing of people living in this region by supporting the development of hybrid organisations. External agencies seeking to support hybrid organisation development are advised to consider providing funding through a regional agency rather than engaging directly with national governments.,Developing a robust hybrid organisation sector will improve social and economic wellbeing for people living in small island nations.,As one of the first studies to examine wellbeing and hybrid organisations, this review adds to hybrid business theory by its consideration of small Pacific island countries. The authors add to existing understandings of how hybrid organisations contribute to social and economic wellbeing for individuals, families and communities. The review identifies each form hybrid organisational form adopts. Each has a central commitment to generating social and economic value but different revenue sources. The review adds valuable new knowledge to the limited scholarship of this region by identifying the philosophical foundations and contributions to wellbeing of these hybrid organisations. A future research agenda and policy development process is proposed to improve wellbeing and advance hybrid organisations in the region.

Authenticity in business sustainability: Overcoming limitations in strategic management constructs

Abstract: This paper critiques existing approaches to business sustainability and recommends a new course of action. This paper focuses the critique on sustainable business practices (SBP) and gaining sustainable competitive advantage (SCA), as they have increasingly been the focus of strategy and management scholars.,The relative progress in the strategy and management domains is reviewed with regard to incorporation of concepts such as sustainability, corporate social responsibility and stakeholder theory. The defense industry is explored as a paradigmatic case of inauthentic sustainability.,Findings reveal that existing constructs lack authentic sustainability, largely on account of the tendency of these discourses to privilege select stakeholders in the developed world. Strategic management research needs to evolve further to accommodate a broader, systemic and global focus that will yield authenticity in business sustainability. Mutual benefit for all stakeholders necessitates a paradigm shift in our thinking from competition to collaboration and creation.,When SBP and SCA get applied to certain industries, such as defense, they prop up a form of inauthentic sustainability. All global stakeholders must be included in sustainability frameworks, and some businesses, by their very definition, should not be sustained.,Mutual benefit for all stakeholders necessitates a paradigm shift in people’s thinking from competition to collaboration and creation. This paper suggests that Blue Ocean Strategy (BOS) can provide the requisite direction for future strategy scholarship so as to overcome existing limitations with SPB and SCA.,This paper suggests that BOS can provide the requisite direction for future strategy scholarship so as to overcome existing limitations with SPB and SCA.

Non) coverage of sustainability within the French professional accounting education program

Abstract: This study seeks to identify how professional accountants in France are educated in sustainability; we examine the French accounting programs in regard to sustainability accounting education recommendations.,We analyze a variety of documents to ascertain what comprises the typical accounting education program in France. Additionally, we conduct five interviews of various stakeholders to understand the importance of sustainability accounting and education in the French context.,We note an interesting paradox in the French context: while the government requires the reporting and auditing of corporate sustainability information, we find that sustainability is not greatly present in the government-funded French accounting education program. We determine that the government’s power in setting the education agenda combined with its budget restrictions and ability to defer responsibility to other parties has resulted in this paradox in the French setting.,This research draws attention to the consequences of society ignoring sustainability education for professional accountants.,This paper contributes to the discussion on how to educate responsible professional accountants and the implications for the planet if accountants are not trained in sustainability.,This research contributes to the important domain of sustainability accounting education. We also explore additional implications for the accounting profession and the general public.

A dam tale: Using institutional logics in a case-study on water rights in the Canadian coastal mountains

Abstract: Purpose In 1950, the Aluminum Company of Canada (Alcan) was given a perpetual water license for a large section of Northern British Columbia, Canada. The benefit to the original owner of the water rights, the Province of British Columbia, was economic and population growth. The purpose of this paper is to follow the contestation over these rights from 1948 to 2016. Design/methodology/approach An institutional logics perspective was taken to analyze the main actors and how their relative power (dominant versus fringe) changed in the institutional field. Archival data and selected interviews were mapped to institutional logics across three time periods. Findings In the inter-temporal setting, many of the actors that were fringe in 1950 became more dominant by 2016. For example, the local indigenous peoples, the Cheslatta Carrier First Nation, were flooded off their land to make way for Alcan’s dam. They ended up as very powerful players in the institutional field. The perpetual rights given to Alcan made it a dominant actor across all time periods, despite changes in the logics of the institutional field. Research limitations/implications A single case was studied; other comparative settings should be explored to contrast and compare. The data were primarily archival, supplemented by only three interviews of those related to the case study. This case study is also one where water rights were privatized in perpetuity, which may not be the case in other settings. Practical implications Current governments and non-governmental organizations (NGOs) should use this case to understand the long-term effects of resource policy decisions. Social implications The building of large dams has been, and continues to be, used worldwide to provide power to create economic growth. Our setting provides insight into the long-term societal outcomes of using water rights in this way. Originality/value This is an original use of institutional logics around a natural resource-based institutional field. Using institutional logics in a multi-period setting, focusing on the power relations of the key actors, and how they can be constrained by historical forces, provides a contribution to the literature.

Economic effects of climate change on the Mediterranean’s irrigated agriculture

Abstract: This paper aims to assess the economic effects of climate change on the Mediterranean’s irrigated agriculture and how the adoption of alternative crop varieties adapted to the expected length of the growing season can be an effective adaptation measure.,A case study of two irrigation areas in Southern Portugal is used to assess the response to climate change impacts on crop yields and irrigation requirements, and an agricultural supply model is calibrated using a positive mathematical programming (PMP) approach was developed.,Climate change reduces crop yields and causes a slight decrease in irrigation requirements, which could allow an increase in the irrigated area. However, positive impacts on rural areas regarding employment and investment are not expected. The adoption of adaptation measures based on alternative crop varieties, which could maintain crop yields at current levels, increases dramatically the economic value of water and mitigates losses in farm income.,The impacts on output and input market prices, as well as other biophysical impacts (for instance, CO2 and water availability), are important in understanding the effects of climate change on irrigated agriculture, but they were not considered in this study. While this may be a limitation, it can also be a stimulus for further research.,This is an empirical paper, whose results contribute to improving knowledge about the effects of climate change on irrigated agriculture in Mediterranean areas, namely, its economic impacts on returns and the use of agricultural resources (land, water, labour and capital). Other practical implications of the paper are associated with the methodological approach, which provides a framework able to deal with the complexity and multidimensional effects of climate change.,The results of the paper provide important information for scientists, politicians and other stakeholders about the design of more effective adaptation measures able to mitigate the effects of climate change.,Crop yields and irrigation requirements were previously calculated based on data generated by the regional climate models. This is the first time that an application is developed for Portugal. Two distinct profiles of irrigation areas were studied and a large set of crops was considered, which is not common in the existing studies. To specify the PMP approach used to calibrate the agricultural supply model, exogenous crop-specific supply elasticities were estimated through a least square model, which is not common in previous studies.

A history of SEA in France: government, engineers and mathematics

Abstract: The purpose of this paper is to present a history of social and environmental accounting (SEA) in France.,The choice is made to select and analyze three important breakthroughs in the development of SEA in France, at different periods. Three case studies are presented, based on secondary sources for two of them and on the author’s own research for the third one. The author choses the concept of organizational field, defined through its actors, how they interact, what they do, what tools and practices are being developed and what regulations are being enacted.,If each case is different in terms of context and outcome, all three present common characteristics which characterize the underlying forces which shaped SEA in France: mainly the role played by elites both in government and industry, an ability for industry to present its interests as the interests of France with an impact on the international standardization of some tools and regulatory issues such as product labeling. The French scene is dominated by engineers, characterized by quantitative tools which “measure” environmental performance, in line with the culture of the French elite for which mathematics are a tool for action and problem-solving. In a certain way this “depoliticized” environmental questions and made them a question of optimization more than a question of politics.,Because of the specific context in which some tools emerge, they may not be transferable to other countries without important changes.,The focus on problem solving through quantitative tools to make the most rational decision, and the claim by the engineering profession to be in the best position to do so, is not a focus on accountability. This may be part of the reason why the accounting profession is not as involved as in other countries.,This paper also shows how France has been both a local field of SEA production, when it comes to developing quantitative tools, with occasional global reach, and an importer of global standards and SEA concepts which originated from the Anglo-Saxon word, when it comes to reporting. More generally, it is also a good illustration of how the development of a “local” organizational field is congruent with the characteristic of its national environment.

Standards-compliant accounting valuations of ecosystems

Abstract: There is a great deal of interest in ecosystem or natural capital accounting and in methods to estimate monetary valuations of ecosystems. This paper aims to explore methods that may assist agricultural (livestock grazing) enterprises to estimate the monetary value of the productive capacity of the ecosystems they use. Such estimations are expected to provide a more complete set of information about the performance of pastoral operations and may assist them to assure ecological and economic sustainability.,This paper applies five different methods for valuation of the productive ecosystems used in extensive agricultural (grazing) systems. The methods apply different approaches to valuation described in the United Nations System of Environmental-Economic Accounting (SEEA) and Australian Accounting Standards (AASs). To do this, the paper uses financial information drawn from the long-term performance of an economically and environmentally sustainable pastoral enterprise.,SEEA- and AAS-compliant methods to measure the value in use of provisioning ecosystems are practical and useful. The estimations contribute to a reasonable range of fair values required by AASs and improve the availability of information that would be useful in improving the performance of the operation and compare it to reasonable alternate management strategies.,The SEEA is an international standard and AASs are closely aligned to the International Accounting Standards, so the methods described in this paper are likely to be generalisable to enterprises grazing low-rainfall rangelands in other countries. However, their ability to appropriately accommodate the extensive modifications to ecosystems caused by cultivation and fertilisation needs to be tested before they are applied to grazing operations in high-rainfall areas or other forms of agriculture such as cropping or horticulture.,The availability of standards-compliant methods for ecosystem valuation means that companies who wish to include ecosystems on a voluntary and informal basis as sub-classes of land in their general purpose financial reports may be able to do so. If these methods are SEEA-compliant, they could be combined with information about the ecosystem type, extent and condition to produce a set of national ecosystem accounts so that the contribution of ecosystems to the economy can be estimated.,Many of the enterprises that rely on extensive agricultural ecosystems are unable to generate sufficient financial returns to cover their obligations to owners and creditors. The ability to determine the monetary value of the annual inputs provided by the ecosystems may assist landowners and citizens to detect and avoid depletion of their economic and ecological resources.,This paper applies an explicit interpretation of AAS and draws from valuation methods recommended in the SEEA to demonstrate that current accounting standards (national and corporate) provide a strong foundation for the valuation of the ecosystems used as economically significant factors of production.

Sustainability and company attractiveness: A study of American college students entering the job market

Abstract: The purpose of this study is to examine whether a company’s sustainability practices affect job seekers’ perceptions of the attractiveness of the company as a potential employer.,A survey completed by 259 university students assessed the respondents’ attitudes toward sustainability. Participants were then presented a series of scenarios describing the sustainable practices of hypothetical companies using the triple bottom line factors of sustainability (economic, environmental and social) and were asked how attractive they found the company to be and the likelihood that they would accept a job offer from the company.,The findings indicate that sustainability as a single concept and each sustainability factor individually influenced the attractiveness of a company to potential employees.,The results of the study add to the body of job choice research, specifically as related to sustainability practices of companies. It furthers the body of work related to signaling theory and job attractiveness.,The results of this study indicate that sustainability performance is an important factor in determining the attractiveness of a company to potential applicants.,The research highlights the importance of sustainability to potential job applicants. Companies should be aware that positive sustainability performance can make it more attractive to these applicants. The results reported from this research provides additional motivation for companies to pursue efforts in sustainability.,The research builds upon existing research in the fields of sustainability and job choice. While previous research has looked at many factors regarding applicants and job choice including, no other research was found which explicitly considered the triple bottom line factors of sustainability.

Queering accounting: opening up and connecting professional services firms

Abstract: The purpose of this paper is to provide a commentary on the research undertaken by Egan (2018), arguing for the themes of opening and connecting to be embraced, adopted and practiced by professional service firms, those who work within them and the academic researchers actively engaged in investigating this field.,This study provides insights into the need for professional service firms to ensure breathing space for LGBTQI-identifying accountants rather than a simple acceptance and assimilation of LGTQI peoples within the consolidated heteronormative structures of the accounting profession. Starting from the recent societal and legislative changes coupled with the ongoing disruption of the business environment, this paper urges professional service firms and accounting researchers to open up and connect to cultural identification, theory, research ideas, research methodologies and research impact and dissemination.,This study represents the beginning of a discussion around the lifeworlds of LGBTQI-identifying accountants and how embracing these may be beneficial for their accounting profession. It provides a critical discussion of the current use of Queer Theory and it supports future studies around the notion of “intersectionality.” It also includes empirical evidence about connecting academic, professional and public communities around the topic of “Queering Accounting.”

Celebrating advances in LGBT+ diversity in the accountancy profession:Not letting idealistic purity become the enemy of progress

Abstract: Purpose: This paper provides a commentary on evidence presented and issues raised in Egan (2018) regarding LGBT+ diversity initiatives in the accountancy profession. Design/methodology/approach: This paper is an invited commentary based on the author’s experiences of LGBT+ and other diversity initiatives in the profession. Findings: There is cause for optimism in how far the profession has progressed in some countries on supporting LGBT+ (and other forms of) diversity. Practical implications: As the multinational accountancy firms can be agents for change in countries where there remains considerable discrimination and hostility to LGBT+ (and other) communities, constructive critique to help further improve the firms’ innovative actions on LGBT+ and other diversity issues could have a major positive impact on social justice. Egan (2018) is an example of such constructive critique. Social implications: Where other academic studies take a disparagingly critical approach they risk both (1) squandering the opportunity to help achieve the progress they espouse and (2) discouraging other firms embracing innovative diversity practices. Originality/value: Provides a counter perspective to some Critical Accounting arguments that appear to value idealism over progress.

LGBTQ+ accountants: a call for oral history research

Abstract: This paper aims to call on accounting academics to conduct oral histories with Lesbian, Gay, Bisexual, Transgender and Queer (LGBTQ+) members of the industry.,The paper includes a review of the limited work in the field and recommends an oral history approach to understand current conditions as well as how they arose. Moreover, the paper recommends widening the scope of the research into countries with varying LGBTQ+ rights.,There is surprisingly limited research in this area and more needs to be undertaken, especially with regard to LGBTQ+ persons of color and LGBTQ+ accountants in under-researched localities.,The paper makes specific recommendations for future research.,Currently there is very little understanding of the lived experiences of LGBTQ+ members of our industry. The recommended research could – by increasing awareness – lead to better working conditions.,This paper addresses the dearth of research on LGBTQ+ issues in accounting.