Telling a success story through the president’s letter

2019 ◽  
Vol 16 (3) ◽  
pp. 403-433 ◽  
Author(s):  
Adelaide Martins ◽  
Delfina Gomes ◽  
Lídia Oliveira ◽  
João Leite Ribeiro
Keyword(s):  
Impression Management ◽  
Organizational Legitimacy ◽  
Annual Reports ◽  
Controversial Issues ◽  
Success Story ◽  
Content Type ◽  
Organizational Storytelling ◽  
Need To Evaluate ◽  
Interpretative Approach ◽  
Incremental Step

Purpose This paper aims to explore the role of storytelling and impression management (IM) through the president’s letter in legitimizing the practices of an electricity company with regard to controversial issues during a period of change. Design/methodology/approach Drawing on a qualitative case study, this paper examines annual report letters from 1995 to 2013 using a methodological interpretative approach. Findings By promoting a success story using IM, the presidents give sense to particular actions related with controversial issues and attempt to influence expectations on strategic changes. The findings demonstrate that organizational actors use the flexibility of the president’s letter to tell the story and emphasize its self-laudatory nature. The study highlights that storytelling in these documents can be used to alleviate the tensions created by the inherent contradictions of social structures. Practical implications This research is useful for regulatory authorities, users of annual reports and academic researchers, making them attentive of the narratives companies may adopt to protect their legitimacy. The findings shed light on the need to evaluate the credibility of accountability mechanisms and can help stakeholders to develop a more critical view of the president’s letter. Originality/value This paper makes a contribution to research on communication issues by expanding literature on accounting and organizational storytelling. By demonstrating how presidents use sensegiving as a means of legitimacy-claiming, this study adds to the literature on legitimating accounts. In doing so, this paper bridges the gap between theories about organizational legitimacy, storytelling and IM. To sum up, the findings serve as an incremental step toward understanding the nature of accountability reporting.

scholarly journals Does graphical reporting improve risk disclosure? Evidence from European banks

2018 ◽  
Vol 19 (1) ◽  
pp. 161-180 ◽  
Author(s):  
Michael Jones ◽  
Andrea Melis ◽  
Silvia Gaia ◽  
Simone Aresu
Keyword(s):  
Credit Risk ◽  
Impression Management ◽  
Perspective Taking ◽  
Voluntary Disclosure ◽  
Cognitive Biases ◽  
Annual Reports ◽  
Theory Approach ◽  
Risk Disclosure ◽  
Content Type ◽  
Incremental Information

Purpose The purpose of this paper is to examine the voluntary disclosure of risk-related issues, with a focus on credit risk, in graphical reporting for listed banks in the major European economies. It aims to understand if banks portray credit risk-related information in graphs accurately and whether these graphs provide incremental, rather than replicative, information. It also investigates whether credit risk-related graphs provide a fair representation of risk performance or a more favourable impression than is warranted. Design/methodology/approach A graphical accuracy index was constructed. Incremental information was measured. A multi-level linear model investigated whether credit risk affects the quantity and quality of graphical credit risk disclosure. Findings Banks used credit risk graphs to provide incremental information. They were also selective, with riskier banks less likely to use risk graphs. Banks were accurate in their graphical reporting, particularly those with high levels of credit risk. These findings can be explained within an impression management perspective taking human cognitive biases into account. Preparers of risk graphs seem to prefer selective omission over obfuscation via inaccuracy. This probably reflects the fact that individuals, and by implication annual report’s users, generally judge the provision of inaccurate information more harshly than the omission of unfavourable information. Research limitations/implications This study provides theoretical insights by pointing out the limitations of a purely economics-based agency theory approach to impression management. Practical implications The study suggests annual reports’ readers need to be careful about subtle forms of impression management, such as those exploiting their cognitive bias. Regulatory and professional bodies should develop guidelines to ensure neutral and comparable graphical disclosure. Originality/value This study provides a substantive alternative to the predominant economic perspective on impression management in corporate reporting, by incorporating a psychological perspective taking human cognitive biases into account.

scholarly journals Visual trends in the annual report: the case of Ericsson 1947-2016

2018 ◽  
Vol 23 (3) ◽  
pp. 312-325 ◽  
Author(s):  
Emelie Havemo
Keyword(s):  
Impression Management ◽  
Design Methodology ◽  
Annual Report ◽  
Annual Reports ◽  
Corporate Disclosure ◽  
Content Type ◽  
Visual Research ◽  
Visual Research Methods ◽  
Visual Elements ◽  
Reporting Practice

PurposeDisclosure research has argued that visuals are increasingly used in annual reports as a way to increase readability of the annual report, but comparatively little is known about of diagrams compared to graphs and photographs. The purpose of this paper is to provide a historical account of visuals use in corporate disclosure, with an emphasis on diagrams, to show changes from the 1940s until present-day reporting.Design/methodology/approachVisual research methods were applied to analyze how diagrams, photographs and graphs were used in 69 annual reports of the Swedish telecom company Ericsson.FindingsPhotographs have been used with increasing frequency since the 1950s. Graph and diagram use has increased significantly since the 1990s while photograph use remained stable, suggesting that graphs and diagrams increasingly complement photographs for visually representing the organization in corporate disclosure. Factors explaining the case company’s development include both internal (performance, individual preferences, shifting from a manufacturing-based strategy to a service-based strategy) and external (legislation, transformation of the telecom industry).Originality/valueVisual elements in annual reports are increasingly oriented toward immaterial representations of the organization’s standings and identity and diagrams are increasingly used and contribute to this. This finding motivates further research about diagram use in corporate communication, such as how different diagram types convey accounting messages, and whether diagrams serve as impression management devices. For regulators, it will be important to follow the emerging trend of diagram use, since it is becoming part of reporting practice.

scholarly journals Exploring the meaning of climate change discourses: an impression management exercise?

2019 ◽  
Vol 32 (2) ◽  
pp. 113-128 ◽  
Author(s):  
Nik Nazli Nik Ahmad ◽  
Dewan Mahboob Hossain
Keyword(s):  
Climate Change ◽  
Impression Management ◽  
Practical Implication ◽  
Management Strategies ◽  
Annual Reports ◽  
Content Type ◽  
Climate Change Information ◽  
Environmentally Sensitive ◽  
Practical Implications ◽  
Different Levels

Purpose This study aims to analyze how language is used to present climate change information in the narratives of Malaysian companies’ annual reports. Design/methodology/approach The study uses content analysis and discourse analysis, and Brennan et al.’s (2009) impression management strategies and legitimacy theory were applied to explain findings. Findings Much of the discourses are rhetorical in nature and can be considered as corporate attempts to appear concerned for climate change, consistent with an attempt to appear legitimate and manage impressions. Research limitations/implications The first limitation is the purposive sampling used which limits the generalizability of the findings. The second limitation is that the study neglects to focus on companies in environmentally sensitive sectors which have more substantial adverse impacts. The third limitation is that the study did not examine all types of impression management strategies, limiting itself only to strategies which provide a favorable view of the firm. Finally, the study did not attempt to investigate the different levels of impression management strategies. Practical implications A major practical implication is for regulators to consider mandatory climate change reporting at least for the sectors which contribute adversely to global warming. Originality/value This is a first attempt to examine climate change discourses in a developing country.

Legitimacy, accountability and impression management in NGOs: the Indian Ocean tsunami

2015 ◽  
Vol 28 (7) ◽  
pp. 1075-1098 ◽  
Author(s):  
Susan Lee Conway ◽  
Patricia Ann O'Keefe ◽  
Sue Louise Hrasky
Keyword(s):  
Indian Ocean ◽  
Impression Management ◽  
Voluntary Disclosure ◽  
Annual Reports ◽  
Indian Ocean Tsunami ◽  
Main Concern ◽  
Management Activity ◽  
Content Type ◽  
For Profit ◽  
The Indian Ocean

Purpose – Prior research has investigated legitimation strategies in corporate annual reports in the for-profit sector. The purpose of this paper is to investigate this phenomenon in an NGO environment. It investigates Australian overseas aid agencies’ responses to criticism of the relief effort following the Indian Ocean tsunami in 2004. It aims to determine whether voluntary annual report disclosures were reflective of impression management and/or of the discharge of functional accountability. Design/methodology/approach – The paper applies content analysis to compare the structure and content of the annual reports of 19 Australian overseas aid agencies before and after the Indian Ocean tsunami. Findings – Results suggest voluntary disclosure in annual reports significantly increased post-tsunami and was more consistent with impression management activity rather than functional accountability suggesting a response to the legitimacy challenge. The use of impression management tactics differed with agency size, with larger agencies using ingratiation in order to appear more attractive while smaller ones promoted their particular achievements. Originality/value – This paper makes a contribution by extending prior impression management and legitimacy literature to an NGO environment. It has implications for the development of these theories as it looks at organisations where the stakeholders are different from the for-profit sector and profits are not the main concern. It raises issues about the concept of accountability in the NGO sector, and how the nature of organisation reporting is changing to address the challenges of a sector where access to funds is highly competitive.

scholarly journals Board structure and supplementary commentary on the primary financial statements

2014 ◽  
Vol 15 (3) ◽  
pp. 273-290 ◽  
Author(s):  
Venancio Tauringana ◽  
Musa Mangena
Keyword(s):  
Impression Management ◽  
Voluntary Disclosure ◽  
Audit Committee ◽  
Balance Sheet ◽  
Financial Statements ◽  
Ordinary Least Squares ◽  
Annual Reports ◽  
Board Structure ◽  
Least Squares Regression ◽  
Content Type

Purpose – The purpose of this paper is to investigate the relationship between the extent and focus of supplementary narrative commentary (SNC) on amounts reported in the primary financial statements and board structure variables. Design/methodology/approach – The study uses the disclosure index methodology to measure the extent of SNC in annual reports of 167 FTSE 250 companies. Ordinary least squares regression analysis is employed to examine the association between the extent and focus of SNC and board structure variables. Findings – The findings show that the extent of SNC on amounts reported in the primary financial statements is about 30 per cent, suggesting that companies provide commentary on a small number of amounts reported in the financial statements. In terms of focus of SNC, companies provide greater SNC on amounts in the income statement relative to the balance sheet. The regression results indicate that the extent of SNC is negatively associated with board size, and positively associated with audit committee (AC) independence and financial expertise. Focus of SNC is negatively related to AC independence and finance expertise. Originality/value – The research contributes to both the voluntary disclosure and impression management literature streams. The findings provide evidence of the extent and focus of SNC on amounts in the financial statements. They also demonstrate that board structure variables are related to the extent and focus of SNC on amounts in primary financial statements. These findings have implications for policy makers who have responsibilities for ensuring that users of annual reports receive adequate information to make decisions.

United Nations Decade on Biodiversity

2017 ◽  
Vol 30 (8) ◽  
pp. 1711-1745 ◽  
Author(s):  
Ralph Adler ◽  
Mansi Mansi ◽  
Rakesh Pandey ◽  
Carolyn Stringer
Keyword(s):  
United Nations ◽  
Impression Management ◽  
Annual Reports ◽  
Management Tool ◽  
Fiscal Year ◽  
Content Type ◽  
Reporting Practices ◽  
Mining Companies ◽  
Discourse Practices ◽  
Before And After

Purpose The purpose of this paper is to explore the biodiversity reporting practices and trends of the top 50 Australian mining companies before and after the United Nations (UN) declared the period 2011-2020 as the “Decade on Biodiversity”. Design/methodology/approach Using content analysis and interviews, this study compares the extent and type of biodiversity disclosures made by the Australian Stock Exchange’s top 50 metals and mining companies both before and after the UN’s “Decade on Biodiversity” declaration in 2010. Findings A significant increase in the amount of biodiversity reporting is observed between the 2010 fiscal year preceding the UN’s declaration and the 2012 and 2013 fiscal years following the declaration. The findings reveal, however, that the extent of biodiversity reporting is quite variable, with some companies showing substantial increases in their biodiversity reporting and others showing modest or no increases. In particular, the larger companies in the sample showed a statistically significant increase in their disclosures on biodiversity in 2013 compared with 2010, while the increase in biodiversity disclosures by smaller companies was not significant. While interviewees spoke about their companies being more open and transparent, the biodiversity information that is being reported would not enable external parties to assess the company’s biodiversity performance. Research limitations/implications To minimise an organisation’s use of biodiversity reporting as an impression management tool, it is suggested that biodiversity reporting should be more impact based and organisations should provide a report of their activities and their direct and tangible impacts on short-term and long-term biodiversity in and around their operating sites. A possible limitation of the present study pertains to its focus on companies’ voluntary disclosures made in their annual reports and sustainability reports, as opposed to other possible formal or even informal disclosure mediums. Social implications Australia is one of 17 mega-diverse wildlife countries in the world. Finding ways to support the country’s biodiversity framework and strategy are crucial to this continued status. Due to the mining industry’s significant impact on Australia’s biodiversity, a strong need exists for biodiversity reporting by this industry. Furthermore, this reporting should be provided on a site-by-site basis. At present, the reporting aggregation typically conducted by mining companies produces obscure information that is neither useful for stakeholders who are impacted by the mining companies’ activities nor for policymakers who are vested with responsibility for protecting and sustaining the world’s biodiversity. Originality/value This study examines the biodiversity reporting and discourse practices of mining companies in Australia and develops a 50-item biodiversity reporting index to measure the biodiversity reporting practices.

scholarly journals Gender-related discourses in corporate annual reports: an exploratory study on the Bangladeshi companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dewan Mahboob Hossain ◽  
Md. Saiful Alam ◽  
Mohammed Mehadi Masud Mazumder ◽  
Al Amin
Keyword(s):  
Impression Management ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Unique Contribution ◽  
Writing Style ◽  
Cross Sectional ◽  
Content Type ◽  
The Government ◽  
Impression Management Tactics ◽  
Management Tactics

Purpose The purpose of this study is to explore the gender-related discourses in the annual reports of the listed companies in Bangladesh. Design/methodology/approach To fulfill this objective, a sociological discourse analysis (SDA) of the gender-related texts in the annual reports of Bangladeshi companies (listed in the Dhaka Stock Exchange) was conducted. Sandberg and Holmlund’s (2015) organizational impression management tactics (description, praise, admission, defense and writing styles) was applied as the analytical framework of SDA. The findings of the study were interpreted from a triangulation of two different theories: legitimacy theory and impression management theory. Findings The study suggests that the companies in Bangladesh are disclosing gender-related information to a limited extent. They provide some information in relation to equal opportunities, business activities targeted to women and corporate contribution to women’s welfare. Most of these gender-related discourses are rhetorical in nature. The companies used various impression management tactics such as description, praise, positive writing style, vague writing style and emotional writing style. Research limitations/implications This study is exploratory in nature and focuses on cross-sectional data. Thus, it does not identify the trend of corporate gender reporting over the years. Practical implications At the policy level, the findings revealed a need for reporting guidelines for gender narratives. Although there is a global gender reporting guideline as proposed under global reporting initiative, there is no local guideline in Bangladesh. Our findings suggest that in the absence of proper directives, companies presented facts and figures rhetorically and qualitatively. Social implications Our findings provide valuable insights for the companies in assisting the Government of Bangladesh to deal with the prevailing gender inequality and achieved gender-related sustainable development goals. It is argued that the government should take more interest in corporate social responsibility activities (such as promoting gender equality) and introduce legislation and guidelines for social accounting. Originality/value This is one of the very few studies that illustrate the corporate gender reporting of a developing economy – Bangladesh. To make a unique contribution to corporate gender disclosure, the study has drawn its analysis from a triangulation of the impression management and the legitimacy perspectives. Also, the use of SDA for annual report analysis has informed the readers about “how” the corporate narratives are presented in the annual reports rather than “what” issues are disclosed as commonly done in content analysis.

Accounting for rhinos – the case of South African National Parks (SANParks)

2019 ◽  
Vol 15 (2) ◽  
pp. 186-207
Author(s):  
Barry Ackers
Keyword(s):  
South African ◽  
Impression Management ◽  
National Parks ◽  
Mixed Methods Research ◽  
Wildlife Trade ◽  
Annual Reports ◽  
Research Approach ◽  
Strong Positive Correlation ◽  
Content Type ◽  
Rhino Poaching

Purpose Biodiversity is required to sustain life on earth, but the rampant growth in the illegal wildlife trade has created a global conservation challenge, where the African continent is one of the primary casualties. This paper aims to explore how South African National Parks (SANParks) (as the custodian of the largest population of rhinos in the wild) accounts to its stakeholders about how it has discharged its biodiversity mandate relating to rhino preservation. Design/methodology/approach The paper seeks to determine whether the increase in rhino-poaching over the period from 2006 to 2015 is reflected by a concomitant increase in related disclosures in SANParks’ annual reports. It adopts a mixed-methods research approach using both descriptive and inferential statistics, as well as a qualitative analysis of pertinent narrative disclosures describing how SANParks accounts to its stakeholders on the discharge of the rhino-related component of its biodiversity mandate. Findings The study finds that SANParks uses its publicly available annual reports to disclose how it has discharged the rhino-related component of its biodiversity mandate. In this regard, it identified a strong positive correlation between incidents of rhino-poaching and annual report disclosures in the period up to 2010. Initially, SANParks disclosed its rhino-poaching-related performance through impression management to bolster its legitimacy, but later focused its reporting on its rhino conservation efforts. Originality/value Although the subject of rhino-poaching has been extensively researched, this one of the first papers to explore the phenomenon from a governance and accountability perspective of a state-owned entity (\ SANParks) under the mantle of extinction accounting.

scholarly journals Impression management in annual report narratives: the case of the UK private finance initiative

2018 ◽  
Vol 31 (6) ◽  
pp. 1566-1592 ◽  
Author(s):  
Victoria C. Edgar ◽  
Matthias Beck ◽  
Niamh M. Brennan
Keyword(s):  
Public Policy ◽  
Private Sector ◽  
Impression Management ◽  
Annual Report ◽  
Annual Reports ◽  
Private Finance Initiative ◽  
Content Type ◽  
Private Finance ◽  
Policy Direction ◽  
The Uk

Purpose The UK private finance initiative (PFI) public policy is heavily criticised. PFI contracts are highly profitable leading to incentives for PFI private-sector companies to support PFI public policy. This contested nature of PFIs requires legitimation by PFI private-sector companies, by means of impression management, in terms of the attention to and framing of PFI in PFI private-sector company annual reports. The paper aims to discuss this issue. Design/methodology/approach PFI-related annual report narratives of three UK PFI private-sector companies, over seven years and across two periods of significant change in the development of the PFI public policy, are analysed using manual content analysis. Findings Results suggest that PFI private-sector companies use impression management to legitimise during periods of uncertainty for PFI public policy, to alleviate concerns, to provide credibility for the policy and to legitimise the private sector’s own involvement in PFI. Research limitations/implications While based on a sizeable database, the research is limited to the study of three PFI private-sector companies. Originality/value The portrayal of public policy in annual report narratives has not been subject to prior research. The research demonstrates how managers of PFI private-sector companies present PFI narratives in support of public policy direction that, in turn, benefits PFI private-sector companies.

scholarly journals An enactment theory perspective of corporate social responsibility and public relations

2017 ◽  
Vol 35 (5) ◽  
pp. 626-640 ◽  
Author(s):  
Gregoria Arum Yudarwati ◽  
Fandy Tjiptono
Keyword(s):  
Corporate Social Responsibility ◽  
Public Relations ◽  
Social Responsibility ◽  
Mining Industry ◽  
Organizational Legitimacy ◽  
Annual Reports ◽  
Structured Interviews ◽  
Content Type ◽  
Top Executives ◽  
Corporate Social

Purpose The purpose of this paper is threefold: how companies perceive corporate social responsibility (CSR) and public relations (PR); how companies perceive the interconnection between these functions; and what factors contributing to their perceptions. Design/methodology/approach An interpretive qualitative study was employed, where semi-structured interviews with 34 members of PR and CSR departments and three top executives of three big mining (state-owned, private Indonesian, and multinational) companies in Indonesia were carried out. Archival data (e.g. newsletters, websites, and annual reports) were also utilized. Findings CSR and PR are perceived to be community relationship functions to gain and maintain organizational legitimacy from the communities and shareholders. Three factors shaping these functions: the social and political changes in Indonesia; the communities’ collective culture; and the nature of mining industry. Research limitations/implications The current study focused on how companies interpret and enact their interpretations of their organizational environment. This study suggests further research into how the community and other stakeholders interpret the company’s activities and environment. This study also suggests further study on another type of industry. Originality/value The present study provides another approach to understanding how CSR and PR are constructed and enacted in an organization as well as to understanding the company’s justification in enacting particular CSR and PR functions. This study maintains the need to consider local values while keeping the global standard.

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