Jesse Dillard

The making and remaking of organization context

Institutional theory is becoming one of the dominant theoretical perspectives in organization theory and is increasingly being applied in accounting research to study the practice of accounting in organizations. However, most institutional theory research has adequately theorized neither the institutionalization process through which change takes place nor the socio‐political context of the institutional formations. We propose a social theory based framework for grounding and expanding institutional theory to more fully articulate institutionalization processes. Specifically, we incorporate institutional theory and structuration theory and draw on the work of Max Weber in developing a framework of the context and the processes associated with creating, adopting and discarding institutional practices. We propose that the expanded framework depicts the socio‐economic and political context better and more directly addresses the dynamics of enacting, embedding and changing organizational features and processes. Expanding the focus of the institutional theory based accounting research can facilitate a more comprehensive representation of accounting as the object of institutional practices as well as provide a better articulation of the role of accounting in the institutionalization process.

Accounting as a Critical Social Science

Critical theory is concerned with enhancing individual wellbeing and autonomy through societal critique that has its origins in philosophy, sociology and political economics. Critical social science is the application of a critical theoretic within a social‐science domain. Accounting is a technology but it is not ideologically sterile. Critical social science applies critical‐theory methodology in order to make evident the ideological base of manifestations in social science as they lead to alienation, oppression and emancipation. This critical social science critique is applied in order to make evident the ideological base of such manifestations in, or related to, accounting.

Integrated reporting: On the need for broadening out and opening up

Purpose - – The purpose of this paper is to critically assess integrated reporting so as to “broaden out” and “open up” dialogue and debate about how accounting and reporting standards might assist or obstruct efforts to foster sustainable business practices. Design/methodology/approach - – The authors link current debates about integrated reporting to prior research on the contested politics of social and environmental reporting, and critiques of the dominance of business case framings. The authors introduce research from science and technology studies that seeks to broaden out and open up appraisal methods and engagement processes in ways that highlight divergent framings and politically contentious issues, in an effort to develop empowering designs for sustainability. The authors demonstrate the strong resonance between this work and calls for the development of dialogic/polylogic accountings that take pluralism seriously by addressing constituencies and perspectives currently marginalized in mainstream accounting. The authors draw and build on both literatures to critically reflect on the International Integrated Reporting Councils (IIRC, 2011, 2012a,?b, 2013a,?b) advocacy of a business case approach to integrated reporting as an innovation that can contribute to sustainability transitions. Findings - – The authors argue that integrated reporting, as conceived by the IIRC, provides a very limited and one-sided approach to assessing and reporting on sustainability issues. While the business case framing on which it rests might assist in extending the range of phenomena accounted for in organizational reports, it remains an ideologically closed approach that is more likely to reinforce rather than encourage critical reflection on “business as usual” practices. Recognizing that the meaning and design of integrated reporting are still far from stabilized, the authors also illustrate more enabling possibilities aimed at identifying and engaging diverse socio-political perspectives. Practical implications - – Science and technology studies research on the need to broaden out and open up appraisal methods, together with proposals for dialogic/polylogic accountings, facilitates a critical, nuanced discussion of the value of integrated reporting as a change initiative that might foster transitions to more sustainable business practices. Originality/value - – The authors link ideas and findings from science and technology studies with literature on dialogic/polylogic accountings to engage current debates around the merits of integrated reporting as a change initiative that can contribute to sustainability. This paper advances understanding of the role of accounting in sustainability transitions in three main ways: first, it takes discussion of accounting change beyond the organizational level, where much professional and academic literature is currently focussed, and extends existing critiques of business case approaches to social and environmental reporting; second, it emphasizes the political and power-laden nature of appraisal processes, dimensions that are under-scrutinized in existing accounting literature; and third, it introduces a novel framework that enables evaluation of individual disclosure initiatives such as integrated reporting without losing sight of the big picture of sustainability challenges.

Beyond agency and structure: Triple-loop learning

With the demise of Andersen, LLP and new legislation that puts an end to self-governance in public accounting, the effectiveness of current models of accounting ethics have been seriously called into question. We argue that the profession suffers from fundamental limitations in its ethical framework that makes it impossible to effectively address ongoing ethical problems. The dominant representation of professional behavior is an agency model of ethics, in which the ultimate responsibility for identifying and dealing with ethical dilemmas resides with the individual. We argue that structural forces such as control over resources, meaning systems, and community norms and values also have a strong influence on the actions of accountants and that these must also be considered. The recent legitimation crisis has forced the accounting profession and its constituencies to begin to recognize and address the structural aspects of ethics as they enable and constrain action. We propose a framework based on structuration theory and learning theory that allows for systematic, multi-level investigation of the structural forces that cause ethical dilemmas to arise and to be recognized and that influence the manner in which they are analyzed and resolved. This framework should be capable of continual critique and reconfiguration as environmental conditions change.

Enterprise resource planning systems: A physical manifestation of administrative evil☆

Abstract We propose that enterprise resource planning systems (ERPs) inherently embody the tenets of administrative evil. First, we situate the discussion within a critical theory framework. Then, we provide a brief introduction to ERPs. Next, we present the ERP implementation process as a harbinger for organizational change and standardization. Because of the systems power and inclusiveness, the organization is molded in the image of the ERP. Management justifies ERP implementations, and the related hardships, by appeals to instrumental rationality, technological determinism, and capital market demands. ERPs are a physical manifestation, and facilitator, of instrumental rationality within hierarchical control structures. As such, ERPs embody significant potential for administrative evil because of their influence in constituting organizational climate, structures, and roles. Conscience is viewed as inferior to instrumental logic. Morality is recast as following the instrumentally rationalized and legitimized rules. A sense of individual responsibility diminishes as the distance between the object and the action increases. This detachment is greatly enhanced with the implementation of an ERP, and we discuss how this may take place. Ultimately, technical responsibility replaces moral responsibility and the totalizing influence of the ERP facilitates and expedites the process.

Strategically Informed, Environmentally Conscious Information Requirements for Accounting Information Systems

Accounting information systems (AIS) should provide the information firms need to manage organizational activities. Environmental considerations are increasingly important in the business world, so firms are attending more to environmental risks and activities. AIS must respond to these emerging environmental requirements. We develop an information matrix for identifying alternative management strategies for framing and responding to environmental issues. The proposed matrix provides a tool for identifying the information collected, stored, analyzed, and reported in environmentally attuned accounting information systems.

An Environmentally Enlightened Accounting

Abstract Environmental stewardship must become a primary concern if management is to adequately fulfil its societal responsibilities. Management and accounting information systems must aggressively respond to these emerging requirements in order to support adequately the associated information needs as well as to design organizational systems that motivate and facilitate desired behavior. Our purpose here is to consider a framework useful for developing environmentally enlightening management and accounting information systems that take into account alternative environmental perspectives. The framework can be used to develop prototypes representing different levels of environmental enlightenment, and as such, can provide general guidance for moving collectives and organizations toward a more environmentally responsible posture. The framework is illustrated using an example from the salmon farming industry provided in [Geogakopoulous, G., & Thomson, I., 2004. Organic salmon farming: Risk perceptions, decision heuristics and the absence of environmental accounting. In Proceedings of the Asia Pacific Interdisciplinary Research in Accounting. Singapore, July 4–7, 2004, this paper has since been published in this edition of Accounting Forum].

Ethical audit decisions: A structuration perspective

The public accounting profession has long relied on its reputation for integrity and veracity as justification for its professional status and monopoly privilege predicated on claims of acting in the public interest. If such status and privilege are to be justified and sustained, serious consideration of what constitutes ethical behavior, how such behavior is motivated as well as an explicit recognition of the rights and interests of affected parties constitutes an ethical imperative for the profession. Traditionally, work on ethics and auditing is quite narrow, failing to recognize the social context of individual actions, failing to identify the relevant constituencies of the profession, and failing to articulate processes through which the constituencies interests can be identified. Generally, the accounting literature has taken a cognitive perspective on ethical decision making which views the resolution of ethical dilemmas as primarily a function of the moral makeup of the actor responding within the context of the Code of Professional Conduct. The purpose of this paper is to broaden the theoretical base of ethical research, specifically within the area of professional accounting and more generally in the area of business. We propose the application of structuration theory in conjunction with stakeholder theory and a responsibility ethic. The application of stakeholder theory is a means for identifying affected constituencies. A responsibility ethic recognizes the situatedness of an individual within an ongoing professional community. Structuration theory provides a theoretical framework for articulating and investigating both the structures within which action is carried out as well as the interaction between the social structures and the actors. Taken together, the theories allow for an enhanced ability to define ethical behavior within a business context and to understand the contextual antecedents and consequences of ethical acts.

Sustainability Practices in Food Supply Chains: How is Wine Different?

Environmental stewardship has received much attention in the wine industry, but firms must also address social sustainability to be considered a ‘sustainable’ company. In this research, we compare qualitative and quantitative evidence of sustainability practice adoption of wine and other food producers. To this end, we first performed interviews with 14 winery and 18 food processing operations managers or owners in the northwestern United States. We then used the interviews to develop a questionnaire and surveyed all wine and food producers in the same region, receiving responses from 56 wineries and 61 food processors. The results indicate differences in sustainability practices and performance impacts across the two sectors. Specifically, we find that winery managers place more emphasis on certain environmental practices, which in turn improve product quality. Additionally, wineries with higher adoption rates of social sustainability practices find that these efforts pay off in better wine quality and better overall market perceptions.

Values based supply chain management and emergent organizational structures

Purpose – The purpose of this paper is to describe an emergent supply chain management system that supports a sustainable values based organization (VBO) using a structuration theory‐based framework.Design/methodology/approach – A case study of a sustainable beef cooperative employing a structuration theory framework provides insights into sustainable supply chain management models.Findings – The supply chain design and management afford the key to the VBOs success. In order to attain the necessary price premium, the unique product attributes acquired through the natural beef production process must be sustained along the entire supply chain and communicated to the end customer. Structuration theory is useful in understanding supply chain management in VBOs.Research limitations/implications – The paper has implications for studying VBOs, particularly those prioritizing sustainability values. The descriptive model presented is useful in settings where organizational structure and the supply chain are need...