Rob Gray

Corporate social and environmental reporting

Takes as its departure point the criticism of Guthrie and Parker by Arnold and the Tinker et al. critique of Gray et al. Following an extensive review of the corporate social reporting literature, its major theoretical preoccupations and empirical conclusions, attempts to re‐examine the theoretical tensions that exist between “classical” political economy interpretations of social disclosure and those from more “bourgeois” perspectives. Argues that political economy, legitimacy theory and stakeholder theory need not be competitor theories but may, if analysed appropriately, be seen as alternative and mutually enriching theories from alternative levels of resolution. Offers evidence from 13 years of social disclosure by UK companies and attempts to interpret this from different levels of resolution. There is little doubt that social disclosure practice has changed dramatically in the period. The theoretical perspectives prove to offer different, but mutually enhancing, interpretations of these phenomena.

Constructing a research database of social and environmental reporting by UK companies

Responds to the widely‐reported methodological problems which have arisen in research into corporate social and environmental reporting. Reports on an attempt to build a database of UK company social and environmental disclosure. The motivation behind the database is an attempt to provide, first, a data set which both refines and develops earlier attempts to capture and interpret such disclosures; second, a data set covering several years to permit longitudinal analysis; and third, a public database for accounting researchers who wish to pursue, in a systematic and comparable way, more focused hypotheses about social and environmental reporting behaviour. Explains the motivation for, the background to, and process of establishing such a database and attempts to expose the difficulties met and the assumptions made in establishing the structure of the data capture. The resultant database has already proved useful to other UK researchers. Aims to help researchers in other countries to develop their own metho...

Accounting and environmentalism: An exploration of the challenge of gently accounting for accountability, transparency and sustainability☆

Abstract Concern for the natural environment has not occupied a prominent role in accounting scholarship and practice. This paper attempts to redress this omission by investigating the implications for accounting of placing the environment at the centre of the analysis. The paper introduces the principles of this “deep green” position and explores how accounting might articulate them. Whilst there may be no place for what we currently consider to be conventional financial accounting in any “green utopia” the paper does not attempt to operationalise, within a non-green world, certain of the principles of the green position. Emphasis is placed on an accountings potential for contribution to accountability and transparency in participative democracy, the potential for non-financial accounts of the biosphere and, perhaps most contentiously, the use of current accounting techniques for the operationalisation of an accounting for sustainability.

Struggling with the Praxis of Social Accounting: Stakeholders, Accountability, Audits and Procedures

Addresses three related, though not entirely congruent, aims. Seeks, first, to initiate moves towards a “normative theory” ‐ a conceptual framework ‐ for the developing of social accounting by organizations. Second, aims inductively to draw out best practice from a range of social accounting experiments, illustrated, in particular, by reference to two short cases from Traidcraft plc and Traidcraft Exchange. Third, draws from the conclusions reached in the exploration of the first two aims and attempts to identify any clear “social accounting standards” or “generally acceptable social accounting principles” which can be used to guide the new and emerging social accounting practice. Presents a number of subtexts which attempt to link back to the accounting literature’s more trenchant critiques of social accounting; to address the tension between academic theorizing and engaging with practice; to synthesize different approaches to social accounting practice; and to respond to the urgency that the recent upsurge in interest in social accounting places on the newly formed Institute of Social and Ethical Accountability. An ambitious paper which means that coverage of issues must be thinner than might typically be expected ‐ exploratory, rather than providing answer, offers a collective view from experience and encourage engagement with the rapidly evolving social accounting agenda.

Social, environmental and sustainability reporting and organisational value creation?

Purpose - The objective of this essay is to examine the extent to which social, environmental and sustainability accounting and reporting (SEA) can or should contribute to shareholder value and, correspondingly, to consider the challenge that SEA can offer to the conventional views of “value” that underpin traditional financial accounting. The essay is then used as a vehicle to introduce some relatively new data about sustainable development that has implications for our consideration of “value”. Design/methodology/approach - Although drawing from a wide range of secondary contextual data, the paper is primarily argumentative and seeks to challenge a number of implicit assumptions within both conventional and more “critical” accounting. Findings - Substantive social and environmental reporting and, especially, high quality reporting on (un)sustainability will demonstrate that modern international financial capitalism and the principle organs which support it are essentially designed to maximise environmental destruction and the erosion of any realistic notion of social justice. This paper seeks to demonstrate this contention and the powerful and fundamental implications that this has for conventional financial reporting and for the superficial and cosmetic adjustments to that reporting through “new models of organisational reporting”. Research limitations/implications - The paper questions whether any research which is not either cognisant of or directed towards sustainability and/or sustainable development makes any real sense in the context of current data about the planet. More especially, the paper asks whether any notion of “value” employed in the accounting (and wider) literature can be anything other than self-delusional and empty if it ignores a crucial wider context. Originality/value - Apart from taking debates about “value” and, especially “shareholder value” into another dimension, the paper is one of the first (at least in accounting as far as I am aware) to formally introduce and confront data about planetary sustainability.

Thirty years of social accounting, reporting and auditing: what (if anything) have we learnt?

In an increasingly complex world with increasingly powerful organisations it seems inevitable that society – or groups in society – would become anxious about whether these organisations could be encouraged to match that power with an appropriate responsibility. This is the function of accountability – to require individuals and organisations to present an account of those actions for which society holds them – or would wish to hold them – responsible. And the history of social accounting, at its most fundamental, is a history of attempts to develop this accountability. It seems to me that the widespread and systematic practice of social and environmental accounting is a deeply essential element in any well-functioning, complex democracy. The corollary is that the absence of such mechanisms raises fundamental questions about the nature of modern democracies. This article briefly outlines what I believe to be the three strands of social accounting. It then identifies a few of the lessons that we may be able to learn from current experience and, in particular, how social accounting is related to accountability, democracy and sustainability. The central issue of the tension between accountability and control is touched upon: I then illustrate how the stakeholder model can be used to help define the social account, and conclude with a few words on attestation.

Corporate Social Reporting: Emerging Trends in Accountability and the Social Contract

The article suggests that discord in Corporate Social Reporting (CSR) can be related to differing assumptions about (a) society, and (b) the role of CSR in the society/organisation relationship. It is then argued that, with this perspective, the major trends in CSR can be seen to be built around differing views of the world and that recent major developments in the subject focus upon the concepts of accountability and the social contract.

Environmental accounting, managerialism and sustainability: Is the planet safe in the hands of business and accounting?

The growth in environmental accounting research and interest in the last few years has been little short of phenomenal. For those of us with a long-standing interest in such issues, it is easy to get swept along in the euphoria of seeing environmental issues brought to centre stage in business and accounting debates. Despite wishing to encourage this growth in interest, this chapter is by way of a cautionary tale that, within this burgeoning, enthusiastic and often excellent research, there is a very real danger that environmental accounting may well end up doing more harm than good. This chapter, works from the premises that: (a) accounting (and accounting research) typically adopts a set of implicit assumptions about the primacy and desirability of the conventional business agenda — and is thus ‘managerialist’ in focus; and (b) that the conventional business agenda and environmental protection — and, especially, the pursuit of sustainability — are in fundamental conflict. If this is so then accounting is contributing to environmental degradation — not environmental protection. The chapter seeks to provide a review of the current state of the art in environmental accounting research through this ‘managerialist’ lens and then goes on to illustrate the essence of the problem through the reporting of a new analysis of data from an international study of accounting, sustainability and transnational corporations. The chapter concludes with a call for more explicit examination of the implicit assumptions held in accounting research generally and environmental accounting research in particular.

External transparency or internal capture? The role of third-party statements in adding value to corporate environmental reports1

The paper seeks to evaluate the extent to which verification statements appearing in published corporate environmental reports promote organizational transparency and the empowerment of external parties. To this end, a detailed content analysis was performed on such statements appearing in reports short-listed for the Association of Chartered Certified Accountants Environmental Reporting Awards for the first seven years of the scheme since its inception in 1991/92. Key issues focused upon included those of verifier independence, degree of rigour applied to verification work, whether the performance dimension is meaningfully addressed in verification statements and the extent to which such statements may be considered to ‘add value’ for external constituencies. Our analysis of the basic characteristics of these ‘leading edge’ statements raises fundamental questions concerning the independence of verification. There is much evidence of auditee control over the process, with an overriding emphasis on the environmental management systems at the expense of commentary on performance-based ‘first order’ audit. The disturbing conclusion revealed is that current verification practice exhibits a ‘managerial turn’ rather than representing corporate commitment to external transparency and accountability. Copyright

Current Developments and Trends in Social and Environmental Auditing, Reporting and Attestation: A Review and Comment

This is a discursive paper which attempts to provide a personal review of current and recent developments in social and environmental reporting with particular emphasis on the attestation and auditing implications. The paper takes the essential desirability of social, environmental and sustainability reporting as a crucial element in any well-functioning democracy as a given. It further assumes that any civilised, but complex, society with pretensions to social justice, that seeks a potentially sustainable future and which wishes to try and rediscover some less exploitative and less insulated relationship with the natural environment, needs social and environmental reporting as one component in redirecting its social and economic organisation. With reporting being such a central issue, the paper further takes good quality attestation of that information as essential to both its reliability and its ability to fulfill its required role in developing transparency and accountability. The paper has three motifs: the need to clarify terminology in the field of social and environmental ‘audits’; the current weakness of attestation practices in the area; and the significant — but unfulfilled — promise offered by professional accounting and auditing education and training. The paper concludes with a call for a substantial re-think of accounting education and training.