Julia Clarke

The use of corporate social disclosures in the management of reputation and legitimacy: a cross sectoral analysis of UK Top 100 Companies

Recent years have witnessed an escalation in corporate social reporting (CSR) by UK companies (Gray, Kouhy and Lavers 1995). Whilst some elements of CSR reporting are required by law, much of it represents voluntary reporting. By investigating the non-mandatory reporting of two aspects of social responsibility, corporate community involvement (CCI) and environmental impact, this paper seeks to explore why companies choose to make such disclosures. It specifically asks whether companies are primarily motivated by the strategic need to manage their reputation and legitimacy rather than by the recognition of their ethical accountability, which is the stated purpose of reports produced by cutting edge companies (Clarke 1998).

Customer disclosures, impression management and the construction of legitimacy

– This paper aims to explore how organizations use annual reporting for legitimacy purposes in the context of the ten recently privatised regional water companies in the UK. Although privatization required the water plcs to establish a distinctly different organizational legitimacy for themselves as customer‐focused companies commensurate with their new private sector status, it was clear from the nature of their privatization that they would experience difficulties in achieving this. Privatization did little to change their previous monopoly character, and this created discrepancy with the model of private sector companies operating in customer‐led competitive markets., – The paper uses a content analysis of statements concerning customer service in annual reports. The analysis examines the variety of ways in which the ten water plcs deployed both assertive and defensive impression management techniques in their attempts to gain, maintain and repair their legitimacy as customer‐focused companies., – The analysis emphasises the importance of the role of corporate reporting as a resource in legitimacy management. The paper also argues that, despite sustained efforts, the water plcs did not wholly succeed in persuading all their customers that the privatization of water was “a good thing”., – The paper will be valuable to researchers and practitioners alike, as it attempts to take further ones understanding of how organizations use corporate reporting for legitimacy purposes by examining a much more extreme case of the legitimacy problem than has been previously considered in the literature: namely, the need for an entirely new basis for corporate legitimacy.

Enterprising futures: training and education for small businesses

The abilities and skills of employees will be crucial to the prosperity of small to medium‐sized enterprises (SMEs) and there is some evidence that graduates may have an important role to play in improving performance. This paper examines how the Department of Business Studies at the Manchester Metropolitan University investigated the relevance of its provision to SMEs.The provision is generally perceived as relevant and could be quickly enhanced through the use of guest speakers and case studies. Future changes could include a named route through the existing programmes or the development of a dedicated course. More flexible methods of delivery should be investigated. A gap in the academic literature has been identified and appropriate theoretical material needs to be developed. However, the tension between theory and practice needs to be acknowledged in designing teaching/learning strategies. Short courses in basic skills, particularly in relation to IT, may help some SME students.

Managing the economic impact of accounting regulation: the Spanish case

Company financial managers, when confronted with a change in accounting regulations, may face a change in their economic environment as a result of the reaction of users to the reported accounting information. In 1990 a requirement for lessees to capitalize finance leases was introduced in Spain. Reports the results of a survey in Spain of two key groups, company financial managers and bank financial analysts. The study concludes that leasing companies successfully lobbied for changes in the accounting rules which actually proved adverse to their economic interests; and company managers and bank analysts misunderstand each other′s reactions to the capitalization of finance leases. Indicates that managers can benefit from studying research on economic impact issues before determining their own response.

Grant monitoring by charities: The process of grant-making and evaluation

This article presents the results of a survey of grant monitoring in 170 UK charities. The monitoring and evaluation process is modelled and the extent to which donors follow this is explored. Although over 70 per cent of donors monitored grants, a much smaller percentage proceeded to evaluate results. Reasons for this and an indication of how the processes are carried out are presented.

Shareholders and Corporate Community Involvement in Britain

Corporate community involvement is attracting increasing interest in Britain, but what do shareholders feel about this use of company assets? This timely survey of top UK corporate donors provides interesting data on current practice and explores the degree to which shareholders are consulted. The author is a member of the Department of Business Studies in the Faculty of Management and Business of The Manchester Metropolitan University, Aytoun Building, Aytoun Street, Manchester M1 3GH; e–mail j.clarke@mmu.ac.uk.