Shifts in corporate accountability reflected in socially responsible reporting: a historical review

Abstract

PurposeThe purpose of this paper is to analyze how social power and pressures over the past century have shifted the audience towards which organizations find themselves accountable, as reflected in their social responsibility reporting.Design/methodology/approachThe authors use historical analysis to analyze qualitatively the annual reports of prominent US organizations between the 1900s to the early 2000s. Adopting an integrationist perspective, the authors ground their research in stakeholder theory and reviewed passages in annual reports identifying the audiences of socially responsible organizational initiatives.FindingsThe study revealed that the degree and focus of corporate accountability shifted over the course of the 1900s, and that this change was due to shifts in influence and power stemming from different stakeholders. During the early 1900s, organizations were more concerned with pleasing internal stakeholders (i.e. employees); however, economic and social events shifted this attention towards external stakeholder groups (i.e. the environment) during the latter part of the century. More recent events fueled social pressures, resulting in legislation and social reporting guidelines during the first decade of the twenty‐first century.Practical implicationsOrganizations will continue to be held accountable as new stakeholder groups emerge and different social movements and economic changes transpire, exerting more pressure on organizations to be socially responsible. Furthermore, organizations need to remain current on social reporting guidelines, as these increasingly become the means of communication with multiple stakeholder groups. In summary, findings suggest that organizations would benefit by staying abreast of economic and social cues when developing their socially responsible initiatives and reporting.Originality/valueThe unique contribution of this paper is to identify how economic and social events place pressure on organizations and shift organizational attention through an accountability mechanism, resulting in changes in the focus of social responsibility reporting.

An empirical exploration of the link between reporting to stakeholders and corporate social responsibility reputation in the Spanish context

“…In this regard, stakeholder expectations and demands change significantly over time (Kent and Chan, 2003). Similarly, shifts in influence and power stemming from different stakeholders are also frequent (Morf et al, 2013). In establishing these monitors, companies would always have updated information on the CSR activities that imply a better CSR reputation.…”

Theoretical Developments in Corporate Social Responsibility

“…This is an indication of the change and broadening of who the stakeholders are considered to be, and the increasing seriousness with which communication is regarded. All communication has to be evaluated in terms of whether it is providing valid and comprehensive information as against mainly branding exercises to improve the company's image, also termed moral hypocrisy or a version of impression management (Morf et al 2013).…”

“…Because of social pressures, policy makers, from framing CSR as primarily financial, and beholden to their company's shareholders, have now extended its degree of accountability to social and environmental matters, with increased transparency and standardization. Stakeholders now include more categories such as consumers and local communities, as evidenced through the extension of the reporting to include them (Morf et al 2013).…”

“…Companies could be genuinely honest and comprehensive or only symbolically compliant. This could lead to weaknesses such that the disclosures might be about impression management, focusing in the interests of legitimation, on the positive aspects of the company's performance, and ignoring those which might be received unfavourably (Morf et al 2013). Crowther (2018: 12) has argued that the change in focus of corporate reporting has led to reports being less about actual company results and more about "image creation mechanisms."…”

The Sarbanes-Oxley Act: Impact, Processes, and Roles for Strategic Communication

“…Now, government rules mandate greater accountability among CEOs, CFOs and auditors; oversight instituted to make corporate cultures more resistant to ethical lapses in order to protect consumers, employees, investors, and other stakeholders. Advocacy groups also have pressured for greater corporate responsibility in the United States since the early 1900s (Morf, Flesher, Hayek, Pane, & Hayek, 2013). L. No.…”