The introduction of International Accounting Standards in Europe: Implications for international convergence

This paper describes several implementation effects associated with the mandated adoption of international financial reporting standards promulgated by the International Accounting Standards Board in the European Union, including a possible increased demand for detailed implementation guidance and for a single European securities regulator. The paper also discusses the mandated adoption as a research setting for considering the relative influences of standards versus incentives as determinants of financial reporting outcomes, and describes two standard setting challenges that may become more pronounced as a result of the mandated adoption.

Enhancing the credibility of reporting on corporate social responsibility in Europe

A

Sustainability assurance on the biggest cooperatives of the world: an analysis of their adoption and quality

© 2015 The Authors Annals of Public and Cooperative Economics © 2015 CIRIECSustainability Assurance (SA) is increasing worldwide. Cooperatives are highly susceptible to CSR but there is an interesting research gap regarding SA in them. We use mixed research methods (statistical and content analysis) to study SA practices of the top 300 cooperatives worldwide. Paradoxically, our results show scarce or late SA adoption, and country-level and sector sensibility do not affect SA adoption significantly. Conversely, country-level and sector sensibility influence the choice of the assurance provider. Finally, findings reveal that country-level and industry factors, and also the assurance provider, do affect assurance statements’ quality.Seguí Mas, E.; Bollas Araya, HM.; Polo Garrido, F. (2015). Sustainability assurance on the biggest cooperatives of the world: an analysis of their adoption and quality. Annals of Public and Cooperative Economics. 86(2):363-383. doi:10.1111/apce.12073S363383862Adams, C. A. (2004). The ethical, social and environmental reporting‐performance portrayal gap. Accounting, Auditing & Accountability Journal, 17(5), 731-757. doi:10.1108/09513570410567791Adams, C. A., & Evans, R. (2004). Accountability, Completeness, Credibility and the Audit Expectations Gap. Journal of Corporate Citizenship, 2004(14), 97-115. doi:10.9774/gleaf.4700.2004.su.00010Ball, A., Owen, D. L., & Gray, R. (2000). External transparency or internal capture? The role of third-party statements in adding value to corporate environmental reports1. Business Strategy and the Environment, 9(1), 1-23. doi:10.1002/(sici)1099-0836(200001/02)9:13.0.co;2-hBebbington, J. (1997). Engagement, education and sustainability. Accounting, Auditing & Accountability Journal, 10(3), 365-381. doi:10.1108/09513579710178115Carrasco, I. (2007). Corporate Social Responsibility, Values, and Cooperation. International Advances in Economic Research, 13(4), 454-460. doi:10.1007/s11294-007-9110-2COMMISSION OF THE EUROPEAN COMMUNITIES 2001 Green Paper- Promoting a European Framework for Corporate Social ResponsibilityCornelius, N., Todres, M., Janjuha-Jivraj, S., Woods, A., & Wallace, J. (2007). Corporate Social Responsibility and the Social Enterprise. Journal of Business Ethics, 81(2), 355-370. doi:10.1007/s10551-007-9500-7Deegan, C. (2002). Introduction. Accounting, Auditing & Accountability Journal, 15(3), 282-311. doi:10.1108/09513570210435852Deegan, C., Cooper, B. J., & Shelly, M. (2006). An investigation of TBL report assurance statements: UK and European evidence. Managerial Auditing Journal, 21(4), 329-371. doi:10.1108/02686900610661388Deegan, C., & Rankin, M. (1999). THE ENVIRONMENTAL REPORTING EXPECTATIONS GAP: AUSTRALIAN EVIDENCE. The British Accounting Review, 31(3), 313-346. doi:10.1006/bare.1999.0102Rhianon Edgley, C., Jones, M. J., & Solomon, J. F. (2010). Stakeholder inclusivity in social and environmental report assurance. Accounting, Auditing & Accountability Journal, 23(4), 532-557. doi:10.1108/09513571011041615Emanuele, R., & Higgins, S. H. (2000). Journal of Business Ethics, 24(1), 87-93. doi:10.1023/a:1006215031400Belé, N. A., Ferná, n, Feijó, ndez, Sou, o, Romero, S., & Blanco, S. R. (2012). Measuring quality of sustainability reports and assurance statements: characteristics of the high quality reporting companies. International Journal of Society Systems Science, 4(1), 5. doi:10.1504/ijsss.2012.045371Fonseca, A. (2010). How credible are mining corporations’ sustainability reports? a critical analysis of external assurance under the requirements of the international council on mining and metals. Corporate Social Responsibility and Environmental Management, 17(6), 355-370. doi:10.1002/csr.230GLOBAL REPORTING INITIATIVE (GRI) 2011 GRI Sustainability Reporting Statistics http://www.globalreporting.org/resourcelibrary/GRI-Reporting-Trends-2011.pdfHasan, M., Maijoor, S., Mock, T. J., Roebuck, P., Simnett, R., & Vanstraelen, A. (2005). The Different Types of Assurance Services and Levels of Assurance Provided. International Journal of Auditing, 9(2), 91-102. doi:10.1111/j.1099-1123.2005.00262.xHodge, K., Subramaniam, N., & Stewart, J. (2009). Assurance of Sustainability Reports: Impact on Report Users’ Confidence and Perceptions of Information Credibility. Australian Accounting Review, 19(3), 178-194. doi:10.1111/j.1835-2561.2009.00056.xILLIA L. ROMENTI S. ZYGLIDOPOULOS S. 2010 CSR CommunicationINTERNATIONAL CO-OPERATIVE ALLIANCE (ICA) 1995 Statement on the Cooperative IdentityIAASB 2003 International Standard on Assurance Engagements (ISAE) 3000Kolk, A. (2004). A decade of sustainability reporting: developments and significance. International Journal of Environment and Sustainable Development, 3(1), 51. doi:10.1504/ijesd.2004.004688Kolk, A. (2007). Sustainability, accountability and corporate governance: exploring multinationals’ reporting practices. Business Strategy and the Environment, 17(1), 1-15. doi:10.1002/bse.511Manetti, G., & Becatti, L. (2008). Assurance Services for Sustainability Reports: Standards and Empirical Evidence. Journal of Business Ethics, 87(S1), 289-298. doi:10.1007/s10551-008-9809-xManetti, G., & Toccafondi, S. (2011). The Role of Stakeholders in Sustainability Reporting Assurance. Journal of Business Ethics, 107(3), 363-377. doi:10.1007/s10551-011-1044-1MOCK, T. J., STROHM, C., & SWARTZ, K. M. (2007). An Examination of Worldwide Assured Sustainability Reporting. Australian Accounting Review, 17(41), 67-77. doi:10.1111/j.1835-2561.2007.tb00455.xMoroney, R., Windsor, C., & Aw, Y. T. (2011). Evidence of assurance enhancing the quality of voluntary environmental disclosures: an empirical analysis. Accounting & Finance, 52(3), 903-939. doi:10.1111/j.1467-629x.2011.00413.xO’Dwyer, B. (2003). Conceptions of corporate social responsibility: the nature of managerial capture. Accounting, Auditing & Accountability Journal, 16(4), 523-557. doi:10.1108/09513570310492290O’Dwyer, B., & Owen, D. L. (2005). Assurance statement practice in environmental, social and sustainability reporting: a critical evaluation. The British Accounting Review, 37(2), 205-229. doi:10.1016/j.bar.2005.01.005O’Dwyer, B., & Owen, D. (2007). Seeking Stakeholder-Centric Sustainability Assurance. Journal of Corporate Citizenship, 2007(25), 77-94. doi:10.9774/gleaf.4700.2007.sp.00009O’Dwyer, B., Owen, D., & Unerman, J. (2011). Seeking legitimacy for new assurance forms: The case of assurance on sustainability reporting. Accounting, Organizations and Society, 36(1), 31-52. doi:10.1016/j.aos.2011.01.002Perego, P., & Kolk, A. (2012). Multinationals’ Accountability on Sustainability: The Evolution of Third-party Assurance of Sustainability Reports. Journal of Business Ethics, 110(2), 173-190. doi:10.1007/s10551-012-1420-5Pflugrath, G., Roebuck, P., & Simnett, R. (2011). Impact of Assurance and Assurer’s Professional Affiliation on Financial Analysts’ Assessment of Credibility of Corporate Social Responsibility Information. AUDITING: A Journal of Practice & Theory, 30(3), 239-254. doi:10.2308/ajpt-10047Power, M. (1991). Auditing and Environmental Expertise: Between Protest and Professionalisation. Accounting, Auditing & Accountability Journal, 4(3). doi:10.1108/09513579110141751Sierra, L., Zorio, A., & García-Benau, M. A. (2012). Sustainable Development and Assurance of Corporate Social Responsibility Reports Published by Ibex-35 Companies. Corporate Social Responsibility and Environmental Management, 20(6), 359-370. doi:10.1002/csr.1303Sierra-García, L., García-Benau, M. A., & Zorio, A. (2014). Credibilidad en latinoamérica del informe de responsabilidad social corporativa. Revista de Administração de Empresas, 54(1), 28-38. doi:10.1590/s0034-759020140104Simnett, R., Vanstraelen, A., & Chua, W. F. (2009). Assurance on Sustainability Reports: An International Comparison. The Accounting Review, 84(3), 937-967. doi:10.2308/accr.2009.84.3.937Simnett, R. (2012). Assurance of sustainability reports. Sustainability Accounting, Management and Policy Journal, 3(1), 89-98. doi:10.1108/20408021211223570Zorio, A., García-Benau, M. A., & Sierra, L. (2012). Sustainability Development and the Quality of Assurance Reports: Empirical Evidence. Business Strategy and the Environment, 22(7), 484-500. doi:10.1002/bse.176

A research design for mapping national CSR terrains

Most of the evidence on national progress in corporate social responsibility (CSR) relates to North America and Western Europe, making broad cross-national comparisons difficult. This study seeks to contribute to this end by developing a research design for CSR assessment in a national context. Drawing on prior theory and well-established research methods, developed in order to assess the multi-dimensionality of CSR, a research approach is proposed that can be applied to any country, regardless of the extent to which the notion has penetrated the domestic business sector. Such a research design can expand the existing pool of knowledge on national CSR patterns, inform managers on the national dimension of CSR and contribute to further identifying the relationship between cultural specificity and responsible business behaviour