PurposeMotivated by the new European Union Directive 2014/95 on non-financial and diversity information, this paper aims to develop a future research agenda to conduct pragmatic, theory-oriented ...research into the Directive and corporate sustainability reporting.Design/methodology/approachDrawing upon the relational dynamics between states, firms and society in regulating non-financial reporting (NFR), this essay frames and analyses the Directive and its grand theories, as unproven theories, by discussing its practical concerns and reviewing the academic literature.FindingsThe Directive is an act of policy to legitimise NFR that encompasses two grand theories: improve the comparability of information and enhance corporate accountability. From a pluralist perspective, companies can rest assure that their compliance with the Directive will be perceived as socially desirable, proper and appropriate. However, some of the forces involved in translating the Directive into actionable policies operate contra to the Directive’s goals and, instead, act as barriers to its grand theories. In addressing these barriers, a research agenda is proposed that both traces backward to re-examine the foundational theories of the past and looks forward to explore alternative possibilities for achieving these goals.Research limitations/implicationsThis paper provides researchers with a practical-driven and theory-oriented agenda for future research in light of the rising academic interest in the Directive.Practical implicationsThe barriers to the Directive’s grand theories help policymakers and practitioners to understand the practical concerns about the implementation of the Directive and other mandatory NFR policies.Originality/valueThis paper enriches the emerging debate on the Directive and highlights future possibilities for fruitful empirical research by developing a research agenda.
Purpose
This paper aims to reflect on the future of sustainability reporting standards by examining the current practical initiatives and the Global Reporting Initiative’s (GRI) position in the arena ...of non-financial and sustainability reporting and identifies avenues for future research.
Design/methodology/approach
A critical reflection and analysis of research on the GRI’s achievements and the influence of the International Financial Reporting Standards (IFRS) Foundation’s initiative to develop global sustainability reporting standards.
Findings
The GRI has a dominant position in sustainability reporting standard-setting related to the provision of information about the influence of reporting organisations on society and the natural environment. The IFRS Foundation’s initiative to enter the sustainability reporting standard-setting arena, although from the perspective of providing information to investors regarding the influence of society and the environment on the reporting organisation, is an attempt to solidify its own position as the reporting standard setter of choice, not only for financial reporting but for all reporting standards. However, despite its aim to differentiate its role from the GRI by leveraging the financial-oriented ideological side of double materiality, we argue that the IFRS is unlikely to harm the GRI’s global position in producing multi-stakeholder standards for sustainability reporting and accountability. This differentiated position is facilitated by the different sources of legitimacy the GRI and IFRS rely on.
Research limitations/implications
The paper identifies future research opportunities.
Originality/value
Due to the recent initiatives for creating new sustainability reporting standard-setters, to the best of the authors’ knowledge, this paper offers one of the first critical reflections on the past and the likely future of the GRI and its sustainability reporting standards. The paper also identifies several new avenues for future research.
The COVID-19 pandemic changed expectations for information dissemination and use around the globe, challenging accepted models of communications, leadership, and social systems. We explore how social ...media discourse about COVID-19 in Italy was affected by the rapid spread of the virus, and how themes in postings changed with the adoption of social distancing measures and non-pharmaceutical interventions (NPI). We used topic modeling and social network analysis to highlight critical dimensions of conversations around COVID-19: 1) topics in social media postings about the Coronavirus; 2) the scope and reach of social networks; and 3) changes in social media content as the nation moved from partial to full social distancing. Twitter messages sent in Italy between February 11th and March 10th, 2020. 74,306 Tweets sent by institutions, news sources, elected officials, scientists and social media influencers. Messages were retweeted more than 1.2 million times globally. Non-parametric chi-square statistic with residual analysis to identify categories, chi-square test for linear trend, and Social Network Graphing. The first phase of the pandemic was dominated by social media influencers, followed by a focus on the economic consequences of the virus and placing blame on immigrants. As the crisis deepened, science-based themes began to predominate, with a focus on reducing the spread of the virus through physical distancing and business closures Our findings highlight the importance of messaging in social media in gaining the public’s trust and engagement during a pandemic. This requires credible scientific voices to garner public support for effective mitigation. Fighting the spread of an infectious disease goes hand in hand with stemming the dissemination of lies, bad science, and misdirection.
PurposeThis paper introduces the special issue “Rebuilding trust: Sustainability and non-financial reporting, and the European Union regulation”. Inspired by the studies published in the special ...issue, this study aims to examine the concept of accountability within the context of the European Union (EU) Directive on non-financial disclosure (hereafter the EU Directive) to offer a critique and a novel perspective for future research into mandatory non-financial reporting (NFR) and to advance future practice and policy.Design/methodology/approachThe authors review the papers published in this special issue and other contemporary studies on the topic of NFR and the EU Directive.FindingsAccountability is a fundamental concept for building trust in the corporate reporting context and emerges as a common topic linking contemporary studies on the EU Directive. While the EU Directive acknowledges the role of accountability in the reporting practice, this study argues that regulation and practice on NFR needs to move away from an accounting-based conception of accountability to promote accountability-based accounting practices (Dillard and Vinnari, 2019). By analysing the links between trust, accountability and accounting and reporting, the authors claim the need to examine and rethink the inscription of interests into non-financial information (NFI) and its materiality. Hence, this study encourages research and practice to broaden mandatory NFR practice over the traditional boundaries of accountability, reporting and formal accounting systems.Research limitations/implicationsConsidering the challenges posed by the COVID-19 crisis, this study calls for further research to investigate the dialogical accountability underpinning NFR in practice to avoid the trap of focusing on accounting changes regardless of accountability. The authors advocate that what is needed is more timely NFI that develops a dialogue between companies, investors, national regulators, the EU and civil society, not more untimely standalone reporting that has most likely lost its relevance and materiality by the time it is issued to users.Originality/valueBy highlighting accountability issues in the context of mandatory NFR and its linkages with trust, this study lays out a case for moving the focus of research and practice from accounting-based regulations towards accountability-driven accounting change.
Purpose New Space activities offer benefits for human progress and life beyond the Earth. However, there is a risk that the New Space Economy may develop according to an anthropocentric mindset ...favouring human progress and survival at the expense of all other species and the environment. This mindset raises concerns over the social and environmental impacts of space activities and the accountability of space actors. This research article explores the accountability of space actors by presenting a pluralistic accountability framework to understand, inspire and change accountability in the New Space Economy. This study also identifies future research opportunities. Design/methodology/approach This paper is a reflective and normative essay. The arguments are developed using contemporary multidisciplinary academic literature, publicly available evidence and examples. Further, the authors use Dillard and Vinnari's accountability framework to examine a pluralistic accountability system for space businesses. Findings The New Space Economy requires public and private entities to embrace hybrid and pluralistic accountability for their social and environmental impacts. A new way of seeing the relationship between human life, the Earth and celestial space is needed. Accounting language is used to mirror and mobilise broader forms of responsibility in those involved in space. Originality/value This paper responds to the AAAJ 's special issue call for examining how accountability can be ensured in the New Space Age. The space activities businesses conduct, and the anthropocentric view inspiring their race toward space is concerning. Hence, the authors advocate the need for rethinking accountability between humans and nature. The paper contributes to fostering the debate on social and environmental accounting and the accountability of space actors in the New Space Economy. To this end, the authors use a pluralistic accountability framework to help understand how the New Space Economy can face the risks emanating from its anthropocentric mindset.
We explore how the concept of social capital is used and theorised in accounting research by performing a structured literature review, and a critical analysis, of articles published in leading ...accounting journals. We identify two research paths, namely (1) how social capital influences accounting, and (2) how accounting influences social capital formation. We highlight that both accounting and social capital emanate from the social connections between individuals. We conclude that, although social capital is important in accounting, it is still under‐researched. This provides research opportunities for theory development, and interdisciplinary perspectives. We offer several further suggestions for future research.
PurposeThe Italian government addressed the first wave of its COVID-19 outbreak with a series of social restrictions and calculative practices, all branded with the slogan #istayathome. The hashtag ...quickly went viral, becoming both a mandate and a mantra and, as the crisis played out, we witnessed the rise of the Italian social movement #istayathome. This study examines how the government's calculative practices led to #istayathome and the constituents that shaped this social movement.Design/methodology/approachThe authors embrace social movement theory and the collective identity perspective to examine #istayathome as a collective action and social movement. Using passive netnography, text mining and interpretative text analysis enhanced by machine learning, the authors analysed just over 350,000 tweets made during the period March to May 2020, each brandishing the hashtag #istayathome.FindingsThe #istayathome movement gained traction as a response to the Italian government's call for collective action. Thus, people became an active part of mobilising collective responsibility, enhancing the government's plans. A collective identity on the part of the Italian people sustained the mass mobilisation, driven by cohesion, solidarity and a deep cultural trauma from COVID-19's dramatic effects. Popular culture and Italy's long traditions also helped to form the collective identity of #istayathome. This study found that calculative practices acted as a persuasive technology in forming this collective identity and mobilising people's collective action. Numbers stimulated the cognitive, moral and emotional connections of the social ties shaping collective identity and responsibility. Thus, through collective identity, calculative practices indirectly influenced mass social behaviors and the social movement.Originality/valueThis study offers a novel theoretical perspective and empirical knowledge to explain how government power affects people's culture and everyday life. It unveils the sociological drivers that mobilise collective behaviors and enriches the accounting literature on the effects of calculative practices in managing emergencies. The study contributes to theory by providing an understanding of how calculative practices can influence collective behaviors and can be used to construct informal networks that go beyond the government's traditional formalities.
Purpose This paper aims to critically reflect on the formation of the International Sustainability Standards Board (ISSB), its current agenda and likely future direction. The authors consider the ...relationships between the ISSB and other standard setters, regulators, practitioners and stakeholders, and develop a comprehensive research agenda. Design/methodology/approach The authors review and critically analyse academic and practitioner publications alongside the ISSB’s workplans to identify the themes impacting the future of the ISSB and to develop a research agenda. Findings Three key themes emerge from the authors’ analysis that are likely to influence the future of the ISSB: the jurisdiction and scope of the ISSB – how far its influence is likely to extend, both geographically and conceptually; the ongoing legitimacy challenge the ISSB is facing in terms of setting an agenda for sustainability reporting; and the “capture” of sustainability reporting by influential stakeholders including capital providers. Originality/value The formation of the ISSB is critical to the future of sustainability reporting. The authors provide a comprehensive and topical overview of the past, present and potential future of the ISSB, highlighting the need for further research and providing a research agenda that addresses outstanding questions in the field.
Purpose
Privacy concerns and data security are changing the risks for businesses and organisations. This indicates that the accountability of all governance participants changes. This paper aims to ...investigate the role of external auditors within data protection practices and how their role is evolving due to the current digital ecosystem.
Design/methodology/approach
By surveying the literature, the authors embrace a practice-oriented perspective to explain how data protection practices emerge, exist and occur and examine the auditors’ position within data protection.
Findings
Auditors need to align their tasks to the purpose of data protection practices. Accordingly, in accessing and using data, auditors are required to engage moral judgements and follow ethical principles that go beyond their legal responsibility. Simultaneously, their accountability extends to data protection ends for instilling confidence that security risks are properly managed. Due to the changing technological conditions under, which auditors operate, the traditional auditors’ task of hearing and verifying extend to new phenomena that create risks for businesses. Thus, within data protection practices, auditors have the accountability to keep interested parties informed about data security and privacy risks, continue to transmit signals to users and instill confidence in businesses.
Research limitations/implications
The normative level of the study is a research limitation, which calls for future empirical research on how Big Data and data protection is reshaping accounting and auditing practices.
Practical implications
This paper provides auditing standard setters and practitioners with insights into the redefinitions of auditing practices in the era of Big Data.
Social implications
Recent privacy concerns at Facebook have sent warning signals across the world about the risks posed by in Big Data systems in terms of privacy, to those charged with governance of organisations. Auditors need to understand these privacy issues to better serve their clients.
Originality/value
This paper contributes to triggering discussions and future research on data protection and privacy in accounting and auditing research, which is an emerging, yet unresearched topic.
Higher education institutions and universities have recently started to publish their sustainability and corporate responsibility reports. Yet, due to digitalisation and the benefits of digital ...reporting, websites offer organisations novel opportunities to communicate more updated, timely and interactive information than a periodic sustainability report. However, we know little about sustainability reporting practice within universities and their use of online communication. This study examines the relationship between sustainability reporting practices and web-based communication practices in Italian universities. We employed a qualitative enquire and content analysis of the sustainability web pages of Italian public universities by analysing their content and updates and their relationship with their adoption of sustainability reporting. Our results suggest there are risks to web-based media being used to replace sustainability reporting, resulting in a deinstitutionalising effect for sustainability reporting. This study contributes to the literature on sustainability reporting and disclosure in universities by exploring web-based university communication on sustainability issues and stimulating the debate on replacing sustainability reports with more timely and interactive forms of communication.
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