Conference Papers

Indigenous Peoples, Mining and Impacts & Benefit Agreements: Who is Keeping Score?

Nola Buhr — Mon, 03 Dec 2012 09:00:00 PST

This presentation covers the subjects of * Score-keeping; * Indigenous Peoples; * Mining and Indigenous Peoples; * Impact and Benefit Agreements (emphasis on Canada); and IBA Saskatchewan example.

Where is the responsible in RI engagement?

Ben Jacobsen — Sun, 02 Dec 2012 15:30:00 PST

Purpose Responsible investor (RI) engagement seeks to change corporate strategic priorities on environmental, social and governance (ESG) issues whilst balancing the financial imperative. This paper argues that attempts to change corporate strategic actions on climate change will be less effective whilst the financial performance logic provides relatively more legitimacy to investors and companies. Methodology A case of responsible investment engagement is used to illustrate multiple logics (ESG and financial) in the field of investment. Discourse of the proponent, supporters and opponents of Australia’s first climate change shareholder resolution is analysed using framing analysis. Findings Framing indicated that the proposal emphasised the dominant financial performance logic and often omitted the ESG logic. One possible explanation is that the process of shareholder proposal nomination and the financial imperative within active ownership obligations effectively institutionalised RI engagement within the field of investment.

Voluntary disclosure of GHG emission information

Janice Hollindale et al. — Mon, 03 Dec 2012 13:30:00 PST

Purpose The purpose of this paper is to determine the nature of Australian public companies’ voluntary environmental management disclosures for companies making disclosures about their greenhouse gas emission performance and management in the year before and the year after the introduction of Australia’s National Greenhouse and Energy Reporting legislation, and to empirically test the hypothesized influence of several company characteristics on the quality of these disclosures. Design/methodology/approach The content of GHG performance and management disclosures made in annual reports and stand-alone sustainability reports of 1,766 (1,853) publicly listed Australian companies in 2007 (2009) is determined using an index of quality based on GRI guidelines. The relationship among the quality of disclosures and various company characteristics taken from information asymmetry, agency, political cost and proprietary cost theories is examined using an OLS-regression model. Findings Results indicate that voluntary disclosure of GHG information is significantly related to companies requiring increased debt and having higher leverage, companies belonging to some politically sensitive industries and to the age of companies’ fixed assets. Disclosure of greenhouse gas emission information is also significantly associated with lower ROA, higher Tobin’s q and with having dual (overseas) stock exchange listings.

Visualization techniques to disclose the link between managers’ remuneration and organisation’s performance

Alessia D'Andrea et al. — Sun, 02 Dec 2012 14:30:00 PST

Purpose – The purpose of this paper is to investigate the relationship between the managers’ remunerations and the company’s performance and to propose a visualization technique so that this link can be better understood by stakeholders. Design/methodology/approach – This paper presents an analysis of the compulsory and voluntary disclosure in a sample of Italian listed companies. Content analysis method is used to identify the state of the environmental and social disclosure in the reports. Findings – It is argued that information on managers’ remunerations and company’s performance is actually provided in the available disclosure, but it is spread over several documents and this makes the understanding of the link quite difficult to stakeholders, especially to the non-expert ones.

Travel carbon emission reduction: managing and accounting in a global company

Nadia Di Giacomo et al. — Mon, 03 Dec 2012 11:30:00 PST

Purpose: This case study explores how a global company does or does not adapt to climate change through changes in managerial action. Specifically, the research concerns a travel project in a global consulting company based in London, the stated aim of which was a 25% reduction of carbon emission generated by air travel in one year. The research explores the actions undertaken to achieve carbon emission reduction. Design: A case study method is employed to follow the travel project over one year to examine its contributions, if any, to carbon emission reduction. Findings: Several solutions were implemented by management aimed at reducing carbon emission by air travel. Travel incentive schemes to reduce flight travel were implemented, with a focus on new communication technology. Despite significant managerial effort, carbon was not reduced. When, at the completion of the analysis, the stated objective of achieving 25% carbon emission reduction had not been met, the company instead changed its targets to adapt to much higher levels of carbon emissions to meet its actual levels, which had increased significantly.

The Public Sector Accountants’ Perspective on Sustainability

Belinda Williams — Tue, 04 Dec 2012 09:00:00 PST

Purpose This paper focuses on the accountants‟ perspective towards sustainable development and sustainability reporting in local government authorities, and their current and future role in the reporting process. Design/Methodology/Approach A multi-method approach was employed to collect data utilizing both mail survey and interview techniques. Findings Findings indicate that whilst local authorities are perceived to consider sustainable development important at the organisational level, there is reduced emphasis being placed on the integration of sustainable development activities into the accounting processes and reporting functions of the organisation. Accountants are supportive of involvement in sustainability reporting but their actual involvement differs significantly from the level of involvement they believe they should have. This points to the need for further up skilling required by accountants but in doing so, it brings into question accountants traditional training and the need to develop an appreciation of the sustainable development agenda.

The interplay between management control systems and organisational interpretive schemes in change towards sustainability

Venkateshwaran Narayanan — Sun, 02 Dec 2012 15:30:00 PST

Purpose: This paper seeks to understand organisational change towards greater social and environmental sustainability, specifically focusing on the role of management control systems (MCS) in this process. The majority of the extant literature in management accounting and organisational change focuses on change that moves organisations towards greater commercialisation or a single bottom line. In the context of change towards sustainability where economic, environmental and social concerns have to be balanced, this paper argues that role of MCS in change is better understood within the context of organisational interpretive schemes (Laughlin, 1991). Design/methodology/approach: In this paper the changes in MCS are theoretically framed using Simons (1995) levers of control framework, while the extent of organisational change is theorised using Laughlin’s (1991) pathways of change model and Hopwood et al.’s (2005) approaches to sustainability typology is used to frame the direction of change. The empirical data is derived from an in-depth case study of an Australian multinational corporation in the banking sector. Findings: The findings show that the process of organisational change and the role of MCS in change, especially in the sustainability context are better understood by viewing MCS as situated within and influenced by an organisation’s interpretive schemes.

The Impact of the Environment Management Act on the Accountability of Companies in Fiji

Glen Finau et al. — Tue, 04 Dec 2012 10:30:00 PST

Purpose – This study seeks to explore the impact of the Environment Management Act (2005) on the accountability of three companies in Fiji. Design/methodology/approach – The study uses a multi-case study approach based on three subsidiaries of a conglomerate. Data collected for the study included semi-structured interviews with accountants, internal auditors and environmental, document reviews and content analysis of annual reports and websites of the respective companies. Findings – The findings suggest that the Environment Management Act (2005) is having some effect in terms of engendering accountability in the companies case studied. Further evidence suggests that while this increased accountability has lead to disclosures in annual reports and websites; these disclosures are minimal at best and the primary groups of stakeholders these disclosures are addressing are the government regulatory authorities.

The BP Gulf Oil Spill: Public and Corporate Governance Failures

Carolyn Windsor et al. — Mon, 03 Dec 2012 11:00:00 PST

Purpose: To critically examine public and corporate governance failures that we argue predisposed the BP oil spill in the Gulf of Mexico, the worst environmental disaster in United States (US) history. Design/methodology/approach: A critical examination of publicly available documentation to identify systemic governance flaws of a marketized government agency and BP’s self-regulated corporate governance. Findings: The spill was overseen by the US Federal Government agency, Minerals Management Service (MMS). Restructured by the Reagan Administration to mimic business, the MMS regulated and collected revenue from offshore oil leases, a conflict of interest that compromised this public agency’s integrity. Neo-classical economics and its political ally neo-liberalism were instrumental in marketizing the public sector, which became the agency for the ‘business of business regulation’ supporting regulatory capitalism’s ideal of the market as the only way to organize society. Evidence also reveals weaknesses in BP’s corporate governance as oversight of safety, health and the natural environment by various sub-committees was conducted by a few directors with little transparency or public scrutiny.

Sustainable Development: 1987 to 2012 - Don’t Be Naive, it’s not about the Environment

Nick Barter et al. — Sun, 02 Dec 2012 14:30:00 PST

Purpose:In this paper we explore the concept of sustainable development through the lens of two United Nations publications. The documents, published 25 years apart, highlight how the understanding and enactment of sustainable development has changed over the course of that time. We highlight how sustainable development has been portrayed as an: epic adventure, the right and only choice, a challenge to categorical thinking, and a story of economic growth for human survival. While the tone of both documents differs, what is clear is from the publications is that sustainable development will not be achieved unless it is part of mainstream economic debate, supported by a holistic understanding of the entwined relationship between humanity, the environment and the economy. Design/Methodology/Approach: As a discussion document the paper uses existing literature. Findings: Sustainable development is a concept that is about perpetuating economic growth, but doing so through a non-categorical understanding of humans and nature relationships.