Old Saddles for New Horses: How Non-Financial Assurance Reinforces Traditional Firm Boundaries
Type
conference paper
Date Issued
2022
Author(s)
Abstract
In the absence of legally binding frameworks and standards, research has shown that the assurance of non-financial information has developed as an analogy of financial auditing, copying its processes, logics and methods. We study the consequences of this analogy through
an in-depth study of hand collected data of FTSE100 sustainability reporting and assurance. We view non-financial assurance statements as discursive tools of boundary work and find that the financial audit logics in non-financial assurance reinforce rather than challenge traditional firm boundaries. We identify three mechanisms of boundary work that are responsible for this: a) stakeholder exclusion due to firm and management centricity, b) issue exclusion (exclusion of certain topics) due to conservatism in practice and measurement, and c) a limited audit scope due to methodological and professional constraints. We argue that this stands in sharp contrast to calls for problem-oriented, impact-focussed and inclusive approaches to sustainability measurement. Non-financial assurance in its current design is therefore not appropriate to give a true and fair view of the types of information needed to reflect the complex, dynamic and interdependent nature of the grand sustainability challenges.
an in-depth study of hand collected data of FTSE100 sustainability reporting and assurance. We view non-financial assurance statements as discursive tools of boundary work and find that the financial audit logics in non-financial assurance reinforce rather than challenge traditional firm boundaries. We identify three mechanisms of boundary work that are responsible for this: a) stakeholder exclusion due to firm and management centricity, b) issue exclusion (exclusion of certain topics) due to conservatism in practice and measurement, and c) a limited audit scope due to methodological and professional constraints. We argue that this stands in sharp contrast to calls for problem-oriented, impact-focussed and inclusive approaches to sustainability measurement. Non-financial assurance in its current design is therefore not appropriate to give a true and fair view of the types of information needed to reflect the complex, dynamic and interdependent nature of the grand sustainability challenges.
Language
English
Event Title
FRASOP - Financial Reporting and Auditing as Social and Organizational Practice
Event Location
London School of Economics
Event Date
12.-13.12.2022
Eprints ID
267965