Corporate Social Reporting and Stakeholder Accountability: The Missing Link

A critical review on:

Corporate social reporting and stakeholder accountability:

The missing link

By

Stuart M. Cooper and David L. Owen

Accounting, Organization and Society, 32 (2007) 649-667

Tatiana Burlacu   (10806770)

Hidde Wyngaard (6074340)  

Yanyu Yang        (10654240)

 Group 5

Date: 10th September, 2014                                            Seminar 1, wed 13.00 – 15.00

SAE 2014/2015 

Introduction

The main purpose of this essay is to critically review the paper, “Corporate social reporting and stakeholder accountability: The missing link”, which is written by Stuart M. Cooper and David L. Owen and published in Accounting, Organizations and Society, Vol. 32 (2007).

The critique will begin with a brief summary of the paper. It then will assess whether relevant literature review in the paper is related with its objective, accompanying with the assessment on motive of the paper. Following this, it will assess whether the research rigorously conducted. And then, it will move on to evaluate findings part of the paper in terms of justification and coherent. Finally, the essay will focus on discussing whether the argument in the paper consistently clear and pointing out some weakness of the argument of the whole story. The essay will end up with a brief conclusion based on above assessment.

Summary

Drawing attention to the prevailing phenomena that more and more companies have produced substantial corporate social and sustainability reports, the paper is trying to assess the effect of corporate social reports either voluntary initiatives by institutional reform or mandatory publication of an Operating and Financial Review (OFR) on enhancing corporate accountability. Main method it adopts with respect to research method is qualitative research which involves in extensive documentary analysis, literature review and case studies. Moreover, it uses two analytical frameworks to substantiate the research. One is to evaluate the effect on accountability of corporate governance reform. The other one is to assess whether regulation could be an effective tool to enhance stakeholder accountability. The paper finds little evidence that any real external stakeholder has took part in internal corporate governance mechanism and decision making process. It also finds that OFR lacks specific requirements on social reporting and indeed adopts enlightened shareholder value. Therefore, the paper concludes that corporate social reporting either voluntary or mandatory could have effect on enhancing accountability.