sae exam preparation

8/9/2019 SAE Exam Preparation

1/22

SAE Exam preparation

Section A: One question (10 marks)

Section B: Answer three of four questions (3 x 20 marks)

Each question wi speci!ca" examine one of the foowin# course topics:

(1)Sustaina$iit" reportin# an% inte#rate% reportin#

(weeks 3&')

(2)Sustaina$iit" assurance (weeks &)

(3)Accountin#* accounta$iit" an% ethics (weeks +&,)

(')Socia accounta$iit" an% the !nance sector (weeks -&

10)

()./O accounta$iit" (weeks 11&12)

hat %o nee% to know

oti4ation 5 su6cient un%erstan%in#

7esearch 8uestion9O$ecti4e 5 su6cient un%erstan%in#

;heor" 5 $asic un%erstan%in#< how it hepe% inform !n%in#s

=ase Settin# 5 $asic un%erstan%in#

>in%in#s 5 %etaie% un%erstan%in#

=ontri$ution 5 %etaie% un%erstan%in#

hat is accounta$iit"

s consi%ere% as ?the %ut" to pro4i%e an account ($" no means necessari"

a !nancia account) or reckonin# of those actions for which one is he%responsi$e@ ;he question remains* howe4er* to whom is the accountma%e Benston (1-,2* p ,,) i%enti!es ??shareho%ers* stakeho%ers an%societ" in #enera@@ as three possi& $e recipient #roups

& Accounta$iit" the %ut" to pro4i%e an account or reckonin# of thoseactions for which one is he% responsi$eC& Benston >ree market 4iewC Shareho%ers* stakeho%ers an% societ"are 3 recipient #roups ;he free market (to#ether with monitorin# ser4ices)wi ser4e shareho%ers an% other contractua stakeho%ers we a

& Da$ermans i%ea speech situationC ;his situation wou% enhanceaccounta$iit" $" pro4i%in# a the stakeho%ers with the ri#ht to enter the


2/22

%iscourse an% present their 4iews an% chaen#e the 4iews of others ;hiswou% ea% to a %emocratic consensus a$out the responsi$iities of the!rms& 7o$erts iscussion an% %iao#ueC n %iscussion* %ecisions are ma%eiao#ue is use% to #et a $etter un%erstan%in# of compex issues iao#ue

has therefore the potentia to restore the $aance of accounta$iit" ;hreecon%itions for the %iao#ue to $e successfu: Farticipants must suspen%their assumption an% re#ar% each others as coe#ues G there must $e afaciitator who ho%s the context of %iao#ue& 7o$erts: iao#ue is impossi$e in the presence of hierarchica power

Bryman, A. (2008), Social Research Methods

7eia$iit" an% 4ai%it" quaitati4e research

;rustworthiness an% authenticit"

7espon%ent 4ai%ation

;rian#uation

Action research

Trustworthiness

1 =re%i$iit" & #oo% research %esi#n H practice2 ;ransfera$iit" 5 "ou cou% expect to see simiar (if not exact) processesun%er simiar circumstances3 epen%a$iit" 5 "ou are a%4ise% to keep a compete recor% of theresearch process so it can $e ?au%ite%@' =on!rma$iit" & researcher must account for the fact that their own$iases ma" inIuence the resuts* sometimes this is aso referre% to asreIexi4it"

AuthenticityJ =oncerns poitica impact of research

=riteria:

J >airness: %iKerent 4iewpointsJ Ontoo#ica authenticit": impro4e un%erstan%in# of mem$ers@ socia miieuJ E%ucati4e authenticit": impro4e un%erstan%in# of others@ perspecti4esJ =ata"tic authenticit": impetus to actJ ;actica authenticit": empowerment

J =riteria ha4e not $een inIuentia an% stress on wi%er impact of sociaresearch contro4ersia


3/22

J Some a6nit" with action research which is %iKerent from most sociaresearch in stressin# practica outcomes

J Action research in4o4es coa$oration in %ia#nosin# an% workin# towar%so4in# a pro$em in a socia settin#A7 %ata coection ike" in the formuation of the %ia#nosis an% in

%e4eopin# a soution =an $e quantitati4e an% quaitati4e %ata coection

An important issue for quaitati4e research is that of authenticit" nesta$ishin# authenticit"* researchers seek reassurance that $oth thecon%uct an% e4auation of research are #enuine an% cre%i$e not on" interms of participants@ i4e% experiences $ut aso with respect to the wi%erpoitica an% socia impications of research Authenticit" in4o4es shiftin#awa" from concerns a$out the reia$iit" an% 4ai%it" of research toconcerns a$out research that is worthwhie an% thinkin# a$out its impacton mem$ers of the cuture or communit" $ein# researche% Authenticit"*then* is seen as an important component of esta$ishin# trustworthiness inquaitati4e research

;rian#uation refers to the use of more than one approach to thein4esti#ation of a research question in or%er to enhance con!%ence in theensuin# !n%in#s

1 Data triangulation* which entais #atherin# %ata throu#h se4erasampin# strate#ies so that sices of %ata at %iKerent times an% in %iKerentsocia situations* as we as on a 4ariet" of peope* are #athere%2 Investigator triangulation* which refers to the use of more than oneresearcher in the !e% to #ather an% interpret %ata3Theoretical triangulation* which refers to the use of more than onetheoretica position in interpretin# %ata' Methodological triangulation* which refers to the use of more than onemetho% for #atherin# %ata

;raian#uation &LMea% to a hi#her cre%ita$it"


4/22

Legitimacy theory

Me#itimac" theor" asserts that or#aniNations continua" seek to ensurethat the" are percei4e% as operatin# within the $oun%s an% norms of their

respecti4e societies* that is* the" attempt to ensure that their acti4ities arepercei4e% $" outsi%e parties as $ein# ?e#itimate@ f the compan" ise#itimate* it wi #et support of the societ"

Min#$om: ?Me#itimac" is a con%ition or status which exists when anentit"@s 4aue s"stem is con#ruent with the 4aue s"stem of the ar#ersocia s"stem of which the entit" is part hen a %isparit"* actua orpotentia* exists $etween the two 4aue s"stems* there is a threat to theentit"@s e#itimac"@

Me#itimac" theor" reies upon the notion of a socia contract* which is an

impie% contract representin# the norms an% expectations of thecommunit" in which an or#aniNation operates An or#aniNation is %eeme%to $e e#itimate to the extent that it compies with the terms of the sociacontract As socia expectations of the ree4ant pu$ics chan#e thecorporation must make chan#es or the e#itimac" #ap wi #row as thee4e of conIict increases an% the e4es of positi4e an% passi4e support ofthe societ" %ecreases

Strate#ies of e#itimac"

owin# an% FfeKer outine the means $" which an or#aniNation ma"e#itimate its acti4ities (e#itimac" strate#ies of communication):


5/22

• & ;he or#aniNation can a%apt its output* #oas an% metho%s ofoperation to conform to pre4aiin# %e!nitions of e#itimac"

• & ;he or#aniNation can attempt* throu#h communication* to ater the%e!nition of socia e#itimac" so that it conforms to the or#aniNation@s

present practices* output an% 4aues

• & ;he or#aniNation can attempt* throu#h communication* to $ecome

i%enti!e% with s"m$os* 4aues or institutions that ha4e a stron# $aseof e#itimac"

Min#$om (1--') %e!ne% ' strate#ies ;he or#anisation can seek to:

& 1 E%ucate H inform its ?ree4ant pu$ics@ a$out (actua) chan#es in theor#anisation@s performance H acti4ities* $rin#in# them more in ine with

societa 4aues H expectations

& 2 =han#e ?ree4ant pu$ics@ perceptions of or#anisationa performance Hacti4ities $ut not actua" chan#e them* whie usin# corporate %iscosuresto fase" in%icate chan#e

& 3 anipuate perceptions $" %eIectin# attention from the issue ofconcern onto other reate% issues e# throu#h ?emoti4e s"m$os@ showin#how the or#anisation has a%%resse% societa expectations in otheracti4ities

& ' =han#e externa expectations of its performance e# $" %emonstratin#that speci!c societa expectations are unreasona$e

Accountin# is an% accountin# reports can $e use% $" an or#aniNation toimpement each of the a$o4e strate#ies ;he annua report %iscosurepractices can $e use% in a strate#ic manner to mana#e an or#aniNation@sreations with the communit" in which it operates Me#itimac" an% the ri#htto operate are consi%ere% to #o han% in han% Accountin# %iscosures areconsi%ere% to represent one wa" in which an or#aniNation can e#itimiNeits on#oin# operations here e#itimac" is threatene%* %iscosures areone strate#" to restore e#itimac"

;he 4iew within e#itimac" theor" that or#aniNations wi $e penaiNe% ifthe" %o not operate in a manner consistent with communit" expectations(that is* in accor%ance with the socia contract) is a 4iew $ein# em$race%pu$ic" $" corporate mana#ers in man" European an% other nations npractice* poicies to maintain or restore corporate e#itimac" aresometimes articuate% in terms of reputation risk mana#ement

ee#an an% /or%on (1--) stu%" in%icate%:


6/22

• & ncreases in corporate en4ironmenta %iscosures o4er time werepositi4e" associate% with increases in the e4es of en4ironmenta#roup mem$ership<

• & =orporate en4ironmenta %iscosures were o4erwhemin#" sef&

au%ator"

• & ;here was a positi4e correation $etween the en4ironmenta

sensiti4it" of the in%ustr" to which the corporation $eon#e% an% thee4e of corporate en4ironmenta %iscosure ;hese resuts were%eeme% to $e consistent with e#itimac" theor"

;hree t"pes of e#itimac":& Moral 5 ;he more ethica t"pe of e#itimac" (societ" perspecti4e) e4auation:

o =onsequentia what are the consequences of the $eha4ior of thecompan"o Froce%ura #oo% or $a% for the societ"o Fersona what is the experience of the peopeo Structura %oes it ha4e $ene!ts for the societ"7ests on u%#ements not a$out whether a #i4en acti4it" $ene!ts thee4auator* $ut rather on u%#ements a$out whether the acti4it" is ?theri#ht thin# to %o@

& Pragmatic 5 Fersona perspecti4e it@s a$out persona interest:o Exchan#e: what is in it for me

o nIuence: how can inIuence this practiceo ispositiona: what is m" interest7ests on the sef&intereste% cacuations of an or#anisation@s mostimme%iate au%iences

& Cognitive 5 the hi#hest one to o$tain of the three t"pes of e#itimac":o Base% on ?comprehensi$iit"@ H ?taken&forrante%ness@ rather than?interest or e4auation@ as in the other two forms

From the slides:

Me#itimac" is:& “..a condition or status which exists when an entity’s value system iscongruent with the value system of the larger social system of which theentity is part”.& “..a measure of societal perceptions of the adequacy of corporateehaviour”.


7/22

Me#itimac" theor" assumes that: “organi!ations attempt to ensure thattheir activities are perceived y outside parties as eing "legitimate’”

Or#anisations nee% to #ain a ?socia icence to operate@

Base% on the notion of a ?socia contract@

>aiure to comp" with the ?contract@ societa sanctions

Me#itimac" is necessar" for or#anisationa sur4i4a

owin# an% FfeKer (1-+):

A%apt output* #oas H metho%s of operation to conform to socia

contract

Ater the %e!nition of socia e#itimac" (chan#e societa

expectations)

Become i%enti!e% with s"m$os* 4aues or institutions that ha4e

stron# $ase of e#itimac"

Min%$om (1--'):

E%ucate an% inform ree4ant pu$ics a$out (actua) chan#es in

performance9acti4ities

=han#e perceptions of ree4ant pu$ics a$out performance9acti4ities

anipuate perceptions $" %eIectin# attention from the issue of

concern

=han#e externa expectations of performance


8/22

ta!eholder theory (ethical " managerial)

The ethical #ranch (mora an% normati4e perspecti4e)

A stakeho%ers ha4e the ri#ht to $e treate% fair" $" an or#aniNation an%issues as ?stakeho%er power@ are not %irect" ree4ant the impact ofthe or#aniNation must $e %etermine% $" the or#aniNation@s responsi$iitiesto that stakeho%er an% not a$out the stakeho%er@s economic power o4erthe or#aniNation ana#ement must #i4e equa consi%eration to theinterests of a stakeho%ers

Stakeho%ers ha4e intrinsic ri#hts (safe workin# con%itions* fair pa" etc)an% these ri#hts shou% not $e 4ioate% t is a$out an ethica treatment ofstakeho%ers which ma" require that the economic moti4e of theor#aniNation (pro!t) is tempere% to take account of the mora roe of theor#aniNation an% their socia eKects on peope@s i4es

Stakeho%er an" i%enti!a$e #roup or in%i4i%ua who can aKect or isaKecte% $" the achie4ement of an or#aniNation@s o$ecti4es Stakeho%ersare %i4i%e% into primar" an% secon%ar" stakeho%ers:

Primary one without whose continuin# participation the corporation

cannot sur4i4e as a #oin# concern

Secondary those who inIuence 9 aKect* or are inIuence% 9 aKecte% $"*the corporation* $ut not en#a#in# in transactions with the corporation an%are not essentia for the sur4i4a

Accor%in# to the ethica $ranch* the or#aniNation must consi%er $oth theprimar" an% secon%ar" stakeho%ers Accor%in# to the mana#eria $ranch*primar" stakeho%ers are the %e!nition of stakeho%ers

;he ethica $ranch #i4es a stakeho%ers minimum ri#hts an% that meansthe ri#ht to $e pro4i%e% with information a$out certain facets of theor#aniNation@s operations Accounta$iit" the %ut" to pro4i%e an account(!nancia an% non&!nancia) of those actions for which one is he%responsi$e it is the responsi$iit" to un%ertake certain actions an% topro4i%e an account of those actions

Minkin# accounta$iit" to corporate socia reportin# the roe of acorporate report is to inform societ" a$out the extent to which actions forwhich an or#aniNation is %eeme% to $e responsi$e ha4e $een fu!e% ;he#rowth of corporations in siNe* market power* an% impact on societ" has

natura" $rou#ht with it* a #rowth in responsi$iit"


9/22

;he term ?socia contract@ can theoriNe the responsi$iities of $usiness the aw can pro4i%e expicit terms of the socia contract* whie othersocieta expectations em$o%" the impicit terms (e#itimac" theor")

;he normati4e perspecti4e* ethica $ranch* is a$out how researchers

$eie4e the or#aniNation shou% act an% not a$out how the" actua" %oact t attempts to interpret an% oKer #ui%ance on a $asis of un%er"in#mora principes ;herefore empirica o$ser4ation is not possi$e

The managerial #ranch ($ositi%e and descri$ti%e $ers$ecti%e)

;his approach is a$out when corporate mana#ement is wiin# to atten% tothe expectations of particuar powerfu stakeho%ers (primar") ;he moreimportant the stakeho%er is* the more eKort wi $e exerte% in mana#in#the reationship ana#in# can $e %one true !nancia accountin#information an% information a$out the socia performance of theor#aniNation (#ain support* %istract opposition etc)

;he or#aniNation is consi%ere% to $e part of the wi%er socia s"stem(e#itimac" theor")* $ut consi%ers %iKerent stakeho%er #roups withinsociet" an% how the" shou% $est $e mana#e% ;he expectations ofstakeho%er #roups ha4e impact on the operatin# an% %iscosure poicies of the or#aniNation ;he or#aniNation wi on" respon% to the powerfustakeho%ers power is the stakeho%er@s %e#ree of contro o4erresources Fower is !rm speci!c* $ut for exampe incu%es: comman% ofimite% resources* access to me%ia etc ;he $eha4ior of stakeho%ers is a

constraint of the strate#"* to $est match corporate resources with itsen4ironment

aor roe of corporate mana#ement is to assess the importance ofmeetin# stakeho%er %eman%s in or%er to achie4e the strate#ic o$ecti4esof the !rm ;he expectations an% power of stakeho%er #roups can chan#e or#aniNations must continua" a%apt their operatin# an% %iscosurepoicies

As the stakeho%er power increases* the importance of meetin# thestakeho%er@s %eman%s increases Some of the %eman%s are reate% to the

pro4ision of information a$out the acti4ities Parious acti4ities un%ertaken$" or#aniNations* incu%in# pu$ic reportin#* wi $e %irect" reate% to theexpectations of particuar stakeho%er #roups Or#aniNations want to%iscose information a$out their acti4ities to show that the" conform withthe expectations of the stakeho%ers (e#itimac" theor") Sociaresponsi$iit" acti4ities are usefu in %e4eopin# an% maintainin#satisfactor" reationships with stakeho%ers Bui%in# a corporatereputation as $ein# socia responsi$e throu#h performin# an% %iscosin#socia responsi$iit" acti4ities is part of a strate#" for mana#in#stakeho%er reationships


10/22

From the slides:

Di#h" interreate% with e#itimac" theor"

Stakeho%er theor": focuses on the existence of* H interactions with* %iKerent

stakeho%er #roups

Fossi$iit" of man" ?socia contracts@

istinction $etween mana#eria an% ethica $ranch

ana#eria $ranch:

Or#aniNation&centre%

Or#anisations respon% to most &$ower'ul@ stakeho%ers

uccess'ul or#anisation one that satis!es the %eman%s (sometimes conIictin#)

of its 4arious powerfu stakeho%ers

Fu$ic reportin# wi $e %irect" reate% to expectations of particuar stakeho%er

#roups (demand dri%en)

Ethica $ranch:

ora H normati4e

Ar#ues all sta!eholders should #e treated 'airly

Or#anisationa impact on a stakeho%ers shou% %etermine or#anisationa

responsi$iities

7eportin# shou% $e res$onsi#ility dri%en not %eman% %ri4en

%entif" stakeho%ers:

Dow to i%entif" ke" ?ree4ant@ stakeho%ers


11/22

Economica" powerfu stakeho%ers wi 4ar" from or#anisation to or#anisation H

o4er time

ocial en%ironmental im$acts wi $e ar#er on some stakeho%er #roups

than others

.ee% to negotiate consensus amon# competin# stakeho%er nee%s H

expectations* which aso chan#e o4er time

rimary ta!eholder:One without whose continuin# participation the corporationcannot sur4i4eC (=arkson* 1--* p10)

econdary ta!eholder: ;hose who inIuence or aKect* or are inIuence% or aKecte%$"* the corporation* $ut the" are not en#a#e% in transactions with the corporation an% arenot essentia for its sur4i4aC (p10+)

*+AL A+*ee! 2 ustaina#ility, Accounta#ilty and +thics(intro)(not so important)

Week 2

=ooper* S * H Owen* M (200+) =orporate socia reportin# an% stakeho%eraccounta$iit": ;he missin# inkC* #ccounting$ %rgani!ations and &ociety * Po 32* pp '-&+

=ase stu%" that e4auates the %e#ree of institutiona reform %esi#ne% to empower

stakeho%er an% there$" enhance corporate accounta$iit" accompan"in#4ountar" reportin# initiati4es in the QR

;wo separate in4esti#ations< re4iew of ea%in# e%#e reports an% the process of ci4i

re#uation in the QR

Fro4i%es important %e!nitions of accounta$iit"


12/22

ain concusions incu%e:

7eports faie% to show pro#ress towar%s accounta$iit" an% /o4ernment

re#uation is nee%e%

7e#uation reforms faie% as the" %i% not pro4i%e stakeho%ers with

necessar" power

Dierarchica power pre4ents i%eas of accounta$iit" in institutiona

frameworks

ee!s -/: ustaina#ility re$orting andintegrated re$orting

Week 3 Lecture

7ina%i* M et a* (201')* ;he roe of stakeho%er en#a#ement an% %iao#ue within

the sustaina$iit" accountin# an% reportin# processC* in &ustainaility$ #ccounting

and #ccountaility 7oute%#e* Mon%on* =hapter pp ,&10+


13/22

ee#an* = an% Qnerman* (200)* 'inancial #ccounting Theory( )uropean

edition$ c/raw Di* ai%enhea%: =hapter ,: Qnre#uate% corporate reportin#%ecisions: =onsi%erations of s"stems oriente% theories

*inaldi, L. et al (20/) Boo! cha$ter

Qitwerken 3 of ' punten $i %e 4o#en%e punten

1 ;he roe of stakeho%er en#a#ement an% %iao#ue in sustaina$iit" reportin#

& ;he wh" sta#e: un%erstan%in# or#aniNationa moti4es for stakeho%er en#a#ement an%%iao#ue(reates to mana#ers phiosophica moti4ations to reease SE7 information* $ecause it isnot man%ator"* economica" focuse% aim at one en%* who" ethica" moti4ation at theother han%* oti4es &L strate#ic or hoistic)& ;he to who sta#e: inkin# stakeho%er i%enti!cation to moti4es for reportin#(who are the stakeho%ers* to whom is the compan" responsi$e)& ;he what sta#e: mo4in# from stakeho%er i%enti!cation to stakeho%er en#a#ement an%%iao#ue(what information an% what issues)&Dow shou% the report $e compie%

2 Stakeho%er expectations for socia* en4ironmenta an% sustaina$iit" accountin#

& Shareho%ers* in4estors (want socia report)* insurers* $anks (ES/)* customers* suppiers*empo"ees* tra%e unions* ./Os* the me%ia

Equa an% transparent wa" empo" informa as we as forma en#a#ement strate#ies

Acti4ist #roups mo$iiNe thousan%s of peope (throu#h socia me%ia) to name* $ame* an%shame companies ;he reputationa costs are often immense* since customers areincreasin#" sensiti4e towar%s these issues an% %eman% #reener pro%ucts an% supp"chains =ompanies mi#ht aso face re#uator" risks that often come with hi#himpementation costs.ot ha4in# the !n#er on the puse of current stakeho%er issues mi#ht ea% to (cost")surprises Some stakeho%er #roups* such as As "ou Sow focus on shareho%er resoutionsan% attack companiesSeein# one@s compan" makin# hea%ines for not respectin# human ri#hts oren4ironmenta stan%ar%s can ea% to ower empo"ee morae an% %i6cuties recruitin#new empo"ees

3 =urrent issues in stakeho%er en#a#ement an% %iao#ue

%entif"in# the ran#e of stakeho%ers to $e consi%ere%mpossi$iit" of %irect %iao#ue an% en#a#ement with some stakeho%ersA%%ressin# hetero#eneous stakeho%er 4iews an% expectationsFrioritiNin# stakeho%er nee%s on the $asis of maximum ne#ati4e consequences.e#otiatin# a consensus amon# mutua" excusi4e stakeho%er 4iews throu#h %iscourseethics

1eegan, . and 3nerman, 4. (2005), Lecture

Me#itimac" theor" an% the socia contract

&Tou nee% to suppement this %e!nition with the concepts of pra#matic*morae an% co#niti4e e#itimac" from O@w"er et a (2011)

http://www.future500.org/top-10-stakeholder-issues-2013/http://www.asyousow.org/http://www.asyousow.org/http://www.asyousow.org/http://www.future500.org/top-10-stakeholder-issues-2013/


14/22

Stakeho%er theor"&iKerences $etween the ethica $ranch an% mana#eria $ranch

Week 4 Seminar

ee#an* = an% Bomquist* = (200)* Stakeho%er nIuence on

=orporate 7eportin#: An Exporation of the interaction $etween>&Austraia an% the Austraian ineras n%ustr"C* #ccounting$%rgani!ations and &ociety * Po 31* pp 3'3&3+2

&=ase stu%" of > in Austraia&n4esti#ates if > concerns are reIecte% in the %iscosure poicies ofsampe companies an% a reate% in%ustr" $o%"&Fro4i%es important insi#hts into e#itimac" theor" an% stakeho%er theor"

an% how the" %iKerain concusions incu%e:

Shows the importance of #roups such as > in terms of monitorin#

corporate acti4ities Or#anisations were shown to isten an% mo%if"$eha4ior $ut questions remain

Di#hi#hts important %iscussions surroun%in# coa$oration eKorts $"

./Os an% how it e#itimiNes current practices with imite% chan#eoccurrin# as a resut

ee! 65: ustaina#ility assurance and non7nancial assurance

Week 5 Lecture


15/22

=ooper* S an% Owen* = (201')* n%epen%ent assurance of sustaina$iit" reportsC inSustaina$iit"* Accountin# an% Accounta$iit" 7oute%#e* Mon%on* =hapter pp +2&,

=ooper (201') Book =hapter (not the $est part of the $ook)

1 ;owar%s the stan%ar%iNation of assurance practice(current" no cear stan%ar%s or stan%ar%s* current" two wa"s accountin# $ase%*an% other one core principes of incusi4it"* materiait" an% responsi4eness 4iewe%from a stakeho%er perspecti4e

2 A critica o4er4iew of sustaina$iit" assurance practices

3 Ferspecti4es of ke" actors in the assurance process(mana#eria contro of the process* imite% e4es of stakeho%er en#a#ement*unwiin#ness of ina$iit" to pro4i%e hi#her e4e of assurance

' >uture %e4eopment of sustaina$iit" assurance practices


16/22

Week 6 Seminar

Andon, ., Free, ., and i%a#alan, . (20/) 9The legitimacy o' new assurance$ro%iders: a!ing the ca$ 7t;, ccounting! "rgani#ations and Society , ol. -6


17/22

ee!s >8: Accounting, Accounta#ility and +thics

Week $ Lecture

Lewis, L. and 3nerman, 4. (


18/22

iffers $etween* H within* in%i4i%uas H societies< none $etter than the other Dowe4er* ar#uin# that any #eha%iour is mora" accepta$e to maintain a particuar

societ" is not awa"s &ethical@ e# aparthei% in South Africa

Ethica A$soutism P 7eati4isman we argue that #elie's that certain moral %alues in other societies are

&wrong@CMewis H Qnerman (1---) ar#ue it is not $ossi#le to know an" o$ecti4e meanin# of theterms ?ri#ht@ H ?wron#@n their opinion* ethical a#solutism is in%alid ethics must #e, to some etent,relati%e

3ni%ersal rescri$ti%ism@:1 %enti!es $eha4iour which can ne4er $e mora" ri#ht in an" societ": 3ni%ersal %alues2 %enti!es $eha4iour that can 4ai%" $e re#ar%e% as mora" ri#ht $" one societ" orin%i4i%ua* an% mora" wron# $" another societ" or in%i4i%ua: *elati%e %alues

& n%i4i%uas arri4in# at ?accepta$e@ mora 4aues throu#h a reasoned $rocess o'

uni%ersal $rescri$ti%ism:& 3ni%ersal mora 4aues: >ase confessions throu#h torture& *elati%e mora 4aues: On" socia responsi$iit" of a !rm to maximise pro!ts =S7mora" ?ri#ht@

Week & Seminar

eu, 1. et al., (20-), 9Accounting and networ!s o' corru$tion;, ccounting!"rgani#ations and Society! ol. -8, $$. 60662/.

=ase stu%" that in4esti#ates the roe of accountin# practices within a network of

corruption

Frior thinkin# hi#hi#hte% how accountin# can imit corruption with capitaist

countries ($arrier to corruption)

nterna contro practices< campai#n !nance e#isation< $usiness focuse%

poicies that pre4ent ie#a inIuence pa"ments to poitica actors


Accountin# simutaneous" imits an% faciitates corruption within an

inIuence market settin#

Di#hi#hts the centrait" of accountin# with or#anise% crimina network

Accountin# ma%e possi$e the #eneration* circuation an%

repatriation of the procee%s of corrpution amon# network actors

.etwork occure% $ecause interactions amon# participants con#eaaroun% the accompishment of accountin# transactions


19/22

Accountin# practices $ecome part of the repatoire of ke" actors in

the !e%

Gendron, H. and $ira, L. (200), 9=dentity narrati%es under threat: A study o''ormer mem#ers o' Arthur Andersen;, ccounting! "rgani#ations and Society ,ol. -6, $$. 2>6-00.

=ase stu%" that in4esti#ate% the process $" which in%i4i%uas work their sense of

or#anisationa an% professiona i%entit" in the aftermath of a professiona faiure

nter4iewe% 2 former partners an% empo"ees of Arthur An%erson to in4esti#ate

i%entit" work ensuin# from the $reak%own of the !rm

Or#anisationa sef i%entit" (AA) H pu$ic accountant sef&i%entit"


nter4iewees en#a#e% extensi4e" in i%entit" work

isausion

7esentfuness

7ationaisation

Dopefuness

7aises questions re#ar%in# the pre4aence of commerciaism within pu$ic

accountin# an% partner ife in Bi# ' >irms

ee!s


20/22

Week ' Lecture ()""*+

=ouson* A an% O@Sui4an* . (201')* En4ironmenta an% socia assessment in !nanceC*in &ustainaility$ #ccounting and #ccountaility 7oute%#e* Mon%on* =hapter , pp 12'&1'0

Book chapter that examines how en4ironmenta an% socia consi%erations are$ein# factore% into en%in# an% in4estment %ecisions an% the steps $ein# taken $"en%ers an% in4estors to stan%ar%ise %ecision processes

e$t:

Moan !nance: cre%it risk assessment an% ethica screenin#

Froect !nance: Equator principes

Equit":

7esponsi$e in4estment: ne#ati4eC an% positi4eC screenin#

1e#t & Moan !nance: =re%it 7isk

& ue %ii#ence: ?Rnowin#@ "our customer H their cre%it ?worthiness@& Borrowers can %efaut on oans e# %ue to cost of en4ironmenta ?cean&up@s@& 7eputationa issues: customer $o"cotts

7isk to reputation throu#h e# association with a pouter< %eforestation< human ri#hts

4ioations etcirect !nancia risk %ue to e# proect faiures:&Mate pa"ments* write&oK* %efaut of oans&e4auation of $orrower@s assets< coatera etc

(ooks ike ne#ati4e screenin#)

1e#t 5 Froect !nance: Equator principes

Fressure from ./Os to $e socia" accounta$e for their !nancin#EF en4ironmenta an% socia performance #ui%e ines for proect !nance

Me% to more responsi$e proect !nance* maor impact* en#a#ement with a $roa% ran#e of stakeho%ers

+Iuity: ?wnershi$ Asset anagement

& ue %ii#ence: Rnowin# "our portfoio H it@s ?rea@ 4aue& ?Qnethica@ in4estment %ecisions: e# custer $om$s* to$acco* #am$in#* corruptre#imes& ateriait" of ES/ issues for in4estment acti4ities& Fension fun% mana#ers: >i%uciar" %ut" to $ene!ciaries& 2000 Maw: QR occupationa fun%s@ %iscosure of Socia 7esponsi$e n4estment (S7)

poicies


21/22

Week ,- Seminar

eu, 1., il%a, L., GomeJ, +. ?. (2008). 1iusing 7nancial $ractices in LatinAmerican higher education: understanding the intersection #etween glo#alinKuence and the local contet. ccounting! uditing . ccounta/ility 0ournal ,2,(), />.

=ase stu%" that in4esti#ates how !nancia practices are %iKuse% across countries

an% wh" the nature of a%option 4aries across countries

acro&stu%" %ocuments how or% Bank oans ha4e encoura#e% the a%option of

particuar con!#urations of accountin# an% accounta$iit" practices

icro&stu%" iustrates the wa" in which the institutiona pa"ers* capitas an%

ha$itus within exico an% /uatamaa inIuence% the a%option of Bankrecommen%e% !nancia practices


mportant to mo4e $etween the /o$a an% the Moca if we are to

un%erstan% the sprea% an% of accountin# practices ore speci!ca":

or% Bank acts as an a#ent of %iKusion 4ia %irect contact an%

in%irect mo%ein#

iKusion not an automatic process nIuence% $" %ispositions of

/o4ernment* historica circumstances an% capita

olomon, 4., et al., (20-), 9=m$ression management, myth creation and'a#rication in $ri%ate social and en%ironmental re$orting: =nsights 'rom +r%ingGoman;, ccounting! "rgani#ations and Society! ol. -8, $$. in%in#s su##est that two framesC exist

mpies $ack sta#e pri4ate SE7 is %eeme% necessar" $ut pure" cosmetic

Some imite% e4i%ence of in4estors shiftin# the front sta#e to $ecome a

#enuine accounta$iit" mechanisms



22/22

Fri4ate SE7 %oes not #enera" appear to enhance accounta$iit"

Em$arressment is the primar" emotion %ri4in# interaction

sae exam preparation

Documents