Critical Perspectives on Accounting 17 (2006) 865 881

Corporate social and environmental responsibility in

web-based reports: Currency in the banking sector?
Christine Coupland

University
of
Nottingham,
Nottingham
University
Business
School,
Jubilee
Campus,
Nottingham
NG8
1BB,
UK

Received 7 February 2004; received in revised form 2 December 2004; accepted 15

January 2005
Abstract
The argument that accounting is an interested endeavour, premised on social prac
tices, suggests
that an examination of the quantity of corporate social reporting (CSR) in share
holder reports is too
simplistic an avenue of exploration. An analysis of web-based financial and CSR
reports, using a
discourse/textual analytic approach, has raised questions regarding how these is
sues are given (and
denied) prominence in this context by virtue of their physical positioning and p
ersuasive language. In
the study, web-based forms of reports of five banking groups are examined, Lloyd
s/TSB, the Royal
Bank of Scotland, HSBC, Barclays and the Co-operative Bank. It is argued that, r
ather than the
production of stand-alone reports signalling the growing importance of CSR consi
derations, in this
context they function to peripheralise the information. Although it is evident t
hat organizations are
beginning to articulate a stance with regard to CSR, as increasingly more attent
ion is being paid to
social and environmental issues, simple articulation is no longer sufficient.
© 2005 Elsevier Ltd. All rights reserved.
1.
Introduction
In this paper web-based forms of the reports to shareholders and corporate socia
l responsibility
documents of five banking groups, operating in the UK, are examined; Lloyds/TSB,
The Royal Bank of Scotland, HSBC, Barclays and the Co-operative Bank. Although t
hese
Tel.: +44 115 951 5198.
E-mail
address:
Christine.Coupland@nottingham.ac.uk.
1045-2354/$ see front matter © 2005 Elsevier Ltd. All rights reserved.
doi:10.1016/j.cpa.2005.01.001
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organizations activities are similar and they represent a major section of the UK
banking
activity, their approaches to reporting corporate social reporting (CSR) issues
differ. The
Co-operative Bank has been selected as a values-based organization1 to provide a
contrast
to the other four, more profit-oriented, banking organizations. The aims of the
study are; to
locate and make visible how distance is created between CSR issues and accountin
g practices
in the web-based literature of these organizations; to examine how CSR is constr
ucted
as a concern of the organizations and to investigate how this is legitimated, in
part, through
accounting terms.
Other commentators have examined how attention has been paid to corporate social
reporting in annual reports and other corporate documents (e.g. Moneva and Llena
, 2000;
Unerman, 1999), and have concluded that an examination of the quantity
of disclosure
in shareholder reports is too simplistic an avenue of exploration. In keeping wi
th this I
propose that some analysis of corporate web sites, in particular the financial a
nd CSR
reports, premised on a discourse analytic approach, will raise fresh questions a
bout how
these issues are given (and denied) prominence by virtue of their physical posit
ioning and
persuasive language. For example, I suggest that the separation of CSR issues fr
om the
shareholder s report may indicate the allocation of particular (peripheral?) statu
s to those
issues. Furthermore, I intend, by drawing on media analysis techniques (Fairclou
gh, 1995;
Kress and van Leeuwen, 1998) and the analysis of argument and rhetoric (Billig,
1996), to
suggestthatthelanguageofaccountingpracticeinthesedocumentsberenderedproblematic
and thus underlying assumptions made visible.
The theoretical perspective adopted in the paper is that organizations are a soc
ially
constructed, emergent, process (Berger and Luckmann, 1966; Tsoukas, 1994). Centr
al to
this study is the role of language as a site of action (Austin, 1992), in the fo
rm of a text. It
derives its philosophical underpinning from Wittgenstein s (1967) notion of langua
ge as a
game in that, although we are all rule followers in our language use we are also
 creative in
ourrequirementtobepersuasive.Thissuggeststhatwebsites,asexamplesofcorporatetext,
function as manipulative, or conscious, examples of talk and text. However, succe
ss lies
in their persuasiveness in the light of available, alternative, versions of comp
any behaviour.
Hence, for the purposes of the paper, it is the verisimilitude of the web page t
hat is under
scrutiny, not whether and if it bears any resemblance to some otherwise determin
ed reality.
2.
Social
and
environmental
reporting
This paper focuses on the language of CSR accounts. Other authors have argued th
at
as social and environmental responsibility is a broad concern, articulating it i
s a problem
(CapronandGray,2000).Overuseoftheterm socialaudit hasledtodemandsforclarification
of vocabulary (Owen et al., 2000). Furthermore, the managerial turn in environme
ntal
regulation displaces an environmental audit task from direct forms of verificati
on of physi

1 The Co-operative Bank operates as a values-based organization in that it claims

to be committed to running
a responsive and responsible business which gives priority to ethical, social an
d ecological issues. In 2002 they
were the first UK Company to be named as the world s most socially responsible bus
iness (Global Corporate
Conscience Awards).
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cal things, e.g., emissions, to indirect verification of the systems to control
such verification.
For example, financial auditors cannot verify an assertion that emission levels
were
on
such a day but they can conclude that the system to verify such emissions was in
place and
working adequately (Power, 1997). This suggests that accountability and transpar
ency are
subject to managerial interpretation, thus facilitating control through collecti
ng and disseminating
the information deemed appropriate to advance a particular corporate image (Owen
et al., 2000). One problem that arises from this is that organizational legitima
cy in terms
of accounting for social and environmental activities is supported by the proces
s of being
audited rather than substance to the audit process itself. Furthermore, the use
of abstract
and managerial definitions of social reporting in preference to scientific defin
itions has been
favoured by accountants, (Power, 2003), thus extending claim to expertise in thi
s domain.
While Gray (2002) optimistically suggests that it would be useful to consider so
cial
accounting as the opening up of new spaces in order to promote engagement and ch
ange
practice, some managerialist researchers privilege market forces, do not questio
n the form
of the organization or its social and political environment and adopt a research
agenda
set by business hegemony and pragmatism. Hence, social and environmental reporti
ng is,
typically, regarded in the management literature as an instrumental mechanism or
a by-
product in the pursuit of organizations main, conventional, business focused, pur
poses
(Capron and Gray, 2000). Nevertheless, managerialist accountings can have the, p
ossibly
unintended, consequences of strengthening organizational legitimacy in this area
and thus
permit the capture of social and environmental agendas within the business struc
ture (Neu
et al., 1998).
Although it is commonly accepted that the main aim in for profit organizations is
to generate acceptable returns for shareholders, there is an emergent understand
ing of a
requirement to satisfy a broader group of interested stakeholders whose interest
s are more
than just financial (O Donovan, 2002). Organizations are social creations whose co
ntinued
existence depends on the willingness of society to allow them to continue to ope
rate (Reich,
1998).Theideaofasocialcontractsuggeststhat,althoughtheaimofbusinessisprofit,ther
e
exists an intangible agreement between business and society. Other authors have
examined
the role of communication in disclosure between organizations, the state and indiv
iduals
(e.g. Deegan, 2002). Although this is also where the focus of this study resides
, I argue
that the word disclosure intimates a revealing of real attitudes and behaviours. Hen
ce, I
proposethattheword construction workswellasitillustratesthesociallyandcontextually
shaped nature of these accounts without recourse to comparison with some otherwise
established reality . This is not to suggest that the material world and the day-to
-day
activitiesofitsinhabitantsareunimportant,itisratherthattheversionoftheorganizati
onthat
wearepresentedwithinthismediumperformsfunctionsoverandabovesimpledescription.
I intend to make visible and thus problematize how these functions may be perfor
med
through language to do the discursive business of constructing plausible legitim
acy.
As legitimacy is a resource that can be deployed and manipulated, Deegan (2002);
itisa
commentonthemanagerialperspectiveofstakeholdertheory,(see SegarsandKohut,2001),
that disclosure of information may be employed by the organization to manage/man
ipulate
the stakeholder to gain approval and to distract opposition. Furthermore, there
is an expectation
that particular organizations are more responsive to the demands, or concerns, o
f
financial stakeholders than to the concerns of environmentalists (Neu et al., 19
98). As
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banks are in the evident business of wealth creation, this is deemed to be of pa
ramount
concern a perception of a lack of attention to this endeavour may result in a seri
ous loss
of confidence. Hence, the selection of this type of organization in order to exp
lore how/if
socialandenvironmentalconcernsaresubsumedwithintraditionalannualaccountsintimes
of economic squeeze is both relevant and timely.
The inclusion of voluntary information in annual reports is used to send particu
lar signals
to the reader (Salancik and Meindl, 1984, p. 351); ..
benefits of disclosing social
and environmental information include; pre-empting attacks from pressure groups,
enhancing
corporate reputation, providing opportunities to lead debates, to secure endorse
ments,
demonstratestrongmanagementprinciplesanddemonstratesocialresponsibilities .Iargue
that increasing scrutiny of these types of accounts (e.g., Bebbington et al., 19
99; Unerman,
1999) incurs cost. Claims of social and environmental activity opens up the orga
nization
to further scrutiny/criticism (Fineman, 1996; Robertson and Nicholson, 1996). Ho
wever,
validityclaimsmaybecontested.Althoughaccountingassumessovereigntyinaneconomic
sphere, rationality is to do with the provision of reasons for beliefs or action
s like accounting
(Arrington and Puxty, 1991). If acceptable reason is deemed plausible to an audi
ence
it is viewed as rational, therefore plausibility is key to render a taken for gran
ted view as
problematic breaks the plausible stance.
3.
The
web
as context
of
organizational
communication
The impact of the context of communication should not be underestimated, althoug
h
the World Wide Web, as a relatively new genre of communication, is still emergin
g as a
variant of more established genres (Orlikowski and Yates, 1994; Wynn and Katz, 1
997). I
examineinthepaperhowthestructuresoftheweb-basedsystems,intermsofaccessibilityof
information, may impact on the message being constructed. I suggest that the web
presence
of a company or an individual is still bound by social processes, such as the or
derliness
of talk, shared understanding and accountability (Wynn and Katz, 1997). Furtherm
ore,
corporate communications as socially recognised communicative actions are enacte
d by
members to serve particular purposes (Yates and Orlikowski, 1992).
Although it has been argued that the technology of the internet provides potenti
al for
individuals to challenge large organizations (Crowther, 2002), the construction
of these
sites presents information in a manner that enables a particular version of the
organization,
through an account of their activities to be regarded as common-sense, legitimat
e,
behaviours.Othercommentators,whohaveexploredcomputer-mediatedidentity,havepropos
edthat,
evenin virtual space,identitiesareconstructedinrelationtomaterialandsocial
factorsandthatthereisheightenedsensitivitytothefewcuesthatarevisible(Correll,199
5).
Furthermore, the audience impacts on the claims that may be made on the web site
, in so
far as wide interests and concerns create a discerning public and hence heighten
ed surveillance
is rendered possible. Hence, the context of the web provides a site of organizat
ional
communication that is worthy of some attention with regard to CSR and financial
reporting
activities.
The current Zeitgeist of a moderate climate of opinion in favour of social respo
nsibility,
(Kernisky, 1997; Starik and Rands, 1995), has enabled/required new story lines t
o be
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developedwhichappeartobeconducivetonewformsofalliancebetweenhistoricallyoppositi
onal
agents (Hajer, 1997). This creates an intriguing scenario where a once marginali
zed
perspective (of the environment) begins to challenge (on the surface at least) a
hegemonic,
organizationally defined, perspective in interaction. The web site as an interac
tion is the
focus of the paper.
4.
Research
site
and
methods
The analytical approach adopted in the present study, in keeping with a construc
tionist
perspective, shares a discourse analytic concern with making visible how facts a
re worked
up in talk and text (e.g Potter, 1996). In addition, some techniques have been a
dapted from
media analysis in order to examine how factual information is presented and positi
oned
persuasively (e.g. Fairclough, 1995; Kress and van Leeuwen, 1998).
As the data were collected and read, features of the texts began to cue questions
that
had already arisen during the reading of the CSR and accounting literature (Phil
lips and
Hardy, 2002). The data was searched for patterns of both occurrence and position
ing on the
web page. Once an initial series of themes was identified I returned to the data
to search
for further extracts using a method of constant comparison culled from grounded
theory
(Glaser and Strauss, 1967). I drew on techniques from discourse analysis describ
ed by
Potter (1996), utilising a definition of discourse to include repertoires which
function as
resources in talk (e.g. Billig, 1996; Taylor, 2001). In addition, the methodolog
y adopted in
the study draws, in part, on Krippendorf s (1980) definition of content analysis.
That is,
I have conducted an inquiry into the meaning of the data while acknowledging tha
t there
is no, one, single meaning that requires unwrapping, rather that subjective anal
yses are
acknowledged as inevitable.
Furthermore, the data is approached with a view that statements are made in resp
onse to
some, often unstated, argument that precedes what is said or written. Hence, an
examination
of the rhetorical nature of the text surfaces common-sense ideologies (Billig et
al., 1988;
Billig, 1996). The contrary themes, which give rise to ideological dilemmas when
in
opposition to each other, were sought and examined in the data. In keeping with
recent
applications of a similar methodology in organization studies (Phillips and Hard
y, 1997,
2002; Oswick et al., 2000) the use of discourse to persuasive effect has also be
en examined.
This approach aligns with other commentators investigations into discursive strugg
le
(e.g. Hajer, 1997; Livesey and Kearins, 2002). From a sample of five web sites,
claims to
the generalizability of the findings are problematic, however, an aim for resona
nce with
the reader s interpretations is claimed and an argument is made for extrapolation
beyond
the material at hand (Alasuutari, 1995).
In the study, web-based forms of the reports to shareholders and corporate socia
l responsibility
documents of banking groups were examined. The cases were selected from this
industry as there was an expectation that banks may be focused on profit maximis
ation and
therehavebeenfewevidentspecificenvironmentalcrisesthatwouldsinglethemoutforparti
cular
adverse media attention instigating defence. Although one area in which contenti
ous
issues were predicted to surface was around the notion of funding in what may be
deemed
an irresponsible manner in search of greater returns. To illustrate this point,
some examina
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tion of the Co-operative Bank s stance is included as a contrast to other banking
groups, in
order to make comparative examinations of the data. As the ethical position adop
ted by the
Co-operative Bank is generally well understood1, it is presented in the paper as
a contrast
to how other banks, operating from within a more traditional, profit-oriented, p
erspective
construct themselves as attending to CSR issues. An examination of annual report
s from
the banking sector is relevant as there is an expectation that CSR issues would
be framed
within a business case. This is not simply a financial case, but the ideology ev
ident in the
language, which places the for profit motive as the right and proper way to organi
ze their
activities.
Over a period of 6 months, the web pages of the selected organizations were exam
ined.
Althoughmuchcouldbegainedfromasimplecontentanalysisofthedatainwhichonemay
identifypatternsofargument,inadditiontoapreliminarysearchforpattern,aninvestigat
ion
of some aspects of the reports was carried out in detail in order to explore how
argument is
subsumed, captured and deployed in the service of maintaining and legitimising h
egemonic
value systems. Furthermore, a particular feature of the web sites of these organ
izations is
their potential to be altered, or moved. These corporate arenas are subject to c
hange of
location, thus rendering a return to a particular position on a web site problem
atic over a
period of time. The web addresses for initial contact were:
www.barclays.com
www.hsbc.com
www.lloydstsb.com
www.rbs.co.uk
www.cooperativebank.co.uk
5.
Analysis
The following section of the paper is organised thus: first, access to financial
and social
and environmental reports on the web is examined, second, three aspects of how C
SR is
constructed in the reports as, doing good , being good and funding good , is discussed
and, finally, the role of the language of accounting as a legitimising technique
is explored.
5.1.
Accessibility
to
information
on
the
web
The home page is where most visitors will enter the web site, although search en
gines
provide alternative entry paths to web-based information. The focus of the analy
sis began
herebyexploringthenatureofthephysicalrelationshipbetweenthelocationsofthefinanci
al
reports and CSR reports, focusing particularly on the relative ease of access an
d clarity of
signposting. As the clickable images that lead to information operate as meaning-
making
labels, I suggest that they operate as portals through which the web reader must p
ass. Each
portal in Table 1 represents a move from one page to another through a clickable
heading.
Table 1 summarises ease of access to financial information for the banks in the
study.
For all of the traditional banks financial reports are one or two clicks away fr
om the home
page, the point of entry. That this is an item of interest to potential and/or c
urrent investors,
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Table 1
Accessibility to financial information
Home page First portal Second portal
Barclays Investor relations Downloadable document
HSBC Investor centre Financial results Downloadable document
Lloyds/TSB Services Investor relations Downloadable document
Royal Bank of Scotland Investor relations Downloadable document
Co-operative Ethics in action Partnership reports and accounts Downloadable docu
ment
visiting most of the banks, is signalled using investor as part of the heading. Ho
wever,
whatisalsopertinenthereistheselectionoftheword relations inthebanks websites.The
investor in relationship with the organization is a doubtful concept however it
appears that
the sense that one exists is portrayed through the language. This is argued whil
e acknowledging
that the analysis focuses on a unidirectional interaction rather than an exchang
e.
Whether and if this relationship is regarded as such by the web site visitors ca
n only be
speculated upon. Furthermore, the information made available through investor rel
ations
doesnotincludeormakereferencetoCSRissues.Theseareaccessedfromanotherpathway
initiated from the home page but wholly unconnected to the financial reports. I
suggest that
rather than CSR issues gaining ground in terms of becoming a legitimate dimensio
n in the
accountability of an organization (e.g. triple bottom line Elkington, 1998; Hart
e and Owen,
1991), they are re-located as separate from a more traditional measure, that of
the financial
reports. In addition, I propose that it is with the audience in mind that access
to these reports
is structured in this way. I argue that attention is drawn away from CSR activit
ies, which,
it may be argued, detract from the real business of increasing profit. Hence, sepa
rate and
physically distanced reports enable the corporate response for accountability, d
emanded by
two different and potentially opposing audiences, or stakeholders, to be relevan
t to each
audience. The web page facilitates this separation through subsuming CSR reports
under
headings not apparently connected to CSR issues and some distance from financial
information.
Hence, the potential investor seeking financial information about the organizati
on
is directed through simple labelling to the financial reports.
In contrast, the home page of the Co-operative Bank does not refer to investment
. The
potential investor instead has to interpret which of the (not immediately obviou
s) available
clickable images is most likely to provide the information required. In a simila
r way to the
other banks, the reader is directed through simple language towards the primary
purpose of
the bank. The use of ethics as part of a clickable item utilises an image in a sta
tus-relevant
position thus rendering it impossible for the web site visitor to access financi
al information
without going through this portal. In Table 2, I summarize the signposting of th
e banks to
CSR issues and reports.
An examination of the clickable images that led to CSR-related information sugge
sted
that they operate as value-laden portals through which the web reader must pass in
order
to ascertain where CSR information was located. There is more diversity in the l
abelling
of these sectors of the web site. One question raised by this is what does the l
abelling
obscure? It is not self-evident that CSR issues will be contained in sectors ent
itled about
us , for example. Furthermore, this label suggests an inward focus whereas CSR is
at least
to some extent concerned with the organization s impact beyond its traditional bou
ndaries.
Table 2
Accessibility to CSR information
Home page First portal Second portal Third portal Fourth portal
HSBC In society Education environment community Sustainability social No downloa
dable documents
living our values responsibility
responsible
financing
Barclays Policies and principles Social responsibility CSR report 2002 Downloada
ble document
Lloyds/TSB About us The community and the environment Social responsibility CSR
report 2002 Downloadable
document
Royal Bank of Corporate responsibility Community and environment Community and e
nvironment Downloadable document
Scotland report
Co-operative Ethics in action Partnership reports and accounts Downloadable docu
ment
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In addition, the number of clicks required to arrive at a downloadable form of a C
SR
report are greater than those required to access a similar version of the financ
ial reports.
I have provided a, necessarily brief, exploration of the proximity of CSR and fi
nancial
reports as positioned on the web pages. What is evident is that the banks, which
operate
within a traditional business model prioritise financial performance as of prima
ry importance.
It is presumed, therefore, that financial information is of relevance to web sit
e visitors
and hence is clearly signposted. The contrasting example of the Co-operative Ban
k locates,
at least in terms of the construction of the web site, financial matters as with
in a framework
of ethics. Potential investors are made aware of the bank s ethical stance on entr
y to the
web site. Having examined how CSR and financial issues are separated on the web
sites I
now explore what CSR is deemed to be according to the reports.
5.2.
The
construction
of
CSR
Having examined the web site reports in depth, three aspects of CSR have emerged
as
prevalent throughout. I suggest that the corporate accounts of CSR behaviour are
premised
on; doing good, being good and funding good. Each of the banks describes their C
SR activities
to a greater or lesser extent within these parameters. Doing good denotes activiti
es
beyond the bank s remit of providing financial services. These are generally terme
d community
focused behaviours. Being good refers to accounts of an environmental impact
that the organization may be having and typically includes some description of e
nergy saving
activities and equal opportunities policies. Funding good is the area in which rad
ical
differences appear between the values-based organization and the traditional org
anizations
in the study.
It is evident from the positioning and availability of the clickable items that
they function
as status-evoking headings, (Kress and van Leeuwen, 1998). That is, they confer
what may
be deemed relevant to be discussed in the area of CSR. This illustrates one way
that a
critical examination of how an organization constructs its web page as attending
to CSR
issues highlights the strategic and rhetorical potential of the activity, rememb
ering that the
report itself is a version of the organization (Stanton and Stanton, 2002) in wh
ich reality is
both communicated and constructed (Hines, 1988). In every instance the language
of we
the organization was deployed. From a content analysis of the web pages it is re
latively
clear that the banks all share a notion of the areas relevant to the constructio
n of CSR
accounts as they are fairly consistent among all the organizations investigated.
Whether
and to what extent these accounts are intrinsically related to everyday practice
s and are
monitored is not the remit of this paper, that they may be claimed in a CSR repo
rt signals
attention. More subtle analyses are required, if the focus is to remain on the a
ccount itself,
in order to understand where fissures exist in contemporary accounts of what CSR
is . For
the majority of the banks, CSR is about community and the environment, that is d
oing good
and being good, whereas the values-based organization directs the web visitor to
the issue
of ethics under which all of the bank activities are reported. From within this in
itial signal
of difference, in the area of funding good more apparent differences are made expl
icit.
Many of the traditional organizations web pages were silent on the issue of lendi
ng, the
language of assessment worked to obscure much of the detail (see Chwastiak and Y
oung,
2003). However, there were some instances of clarity, which indicated that there
were two
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Table 3
Summary of constructions of CSR activities
Doing good
All organizations
Being good
All organizations
Funding good
Traditional organizations
Charitable work
Employee involvement
Contribute to debates
Financial inclusion
Energy consumption
Water consumption
Waste production
Gas emissions
Equality
Diversity (employees and customers)
Health and saftey
avoid
categories
e.g. arms dealers
in
exceptional
circumstances
e.g.
poor human rights record
Values-based organization
We will not invest in any business
involved in:
We will not support..
categories of customer who were closely examined, those to avoid and those deemed
acceptable in exceptional circumstances (see Table 3). The language of this corpor
ate
positionshouldbecontrastedwiththatofthevalues-basedstatement ambiguousdexterity
versus unequivocal language. Further detailed illustrative examples of how defin
itions of
CSR are constructed through one bank s descriptions are illustrated below.
Lloyds/TSB
in the market that is now generally covered by the term CSR we believe that we ar
e
a leader
being UK s number one corporate giver (doing good)
having award winning policies in the fields of employee relations (being good)
 leading innovation in the management of change and environmental risk
However, these explanations are followed by a qualifier:
It [being a leader in CSR] is also about the day-to-day business of listening to
and
serving all our stakeholders, because corporate social responsibility does not e
xist in
isolation but is part of building a successful business.
These examples are useful to illustrate several key points, which emerged consis
tently
throughout the web sites of the traditionally focused banks. I propose that by d
escribing
CSR in an indeterminate way, now generally covered by the term , its status as a le
gitimate
concern is reduced and its nature constructed as temporally transient. Furthermo
re, by
describing it as a market it is located within a business language, defining in an
implicit
mannerthebank sapproachtotheseissues.WhatCSRmeansisillustratedthroughexamples
ofdoinggoodandbeinggood,however,theintroductionofthenotionof risk albeitcouched
in managerial terms is intriguing and worth some consideration. Risk was invoked a
s
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relevant to CSR throughout all of the reports, thus suggesting that environmenta
l issues may
be calculated in a similar manner to financial ones. This is in keeping with Pow
er s (1997)
comment that accountants construct overlap between the skills required for finan
cial and
environmental auditing. Accounting functions as a form of expertise that subordi
nates other
possible forms. In the reports, there was no recourse to measures and language o
f the natural
sciences. These may be alternative relevant voices in environmental reports. Fur
thermore,
risk suggests a calculated potential for damage attached to CSR relevant issues. C
ontrast
this with the potential outcome for mis-calculated credit risk. The consequences
of tardy or
unpaid debt hardly seem comparable with ill-considered funding which has environ
mental
or social costs. Nevertheless, the language of accounting appears to render this
description
as plausible and legitimate (see Power, 2003).
The final section of the above series of extracts summarises the status of CSR i
n relation
to a traditional business case. How this functions as a plausible explanation ma
y be deconstructed
on several grounds, however I am limited to a few comments. First, it provides
an example of how CSR is subsumed within the ideology of what businesses are real
ly
about (see Stanton and Stanton, 2002 for a discussion of values systems of princ
ipals being
attended to). Second, it presents these issues in what could be described as opp
ositional
terms. Davison (2002) has described textual antithesis with regard to the struct
ure of annual
reports. There is an implied opposition in the above description, which is in ke
eping with
Billig et al s (1988) notion of ideological dilemmas being evident in interaction.
That is, an
argument exists, albeit unspoken, in the context that more attention may (should
?) be paid
to CSR issues. The account given here defends against the unspoken argument. Thi
s may be
one example of how avowedly values-based organizations, such as the Co-operative
Bank,
are beginning to elicit response from traditional, commercial organizations (Owe
n et al.,
2000). This is explicitly attended to in the following illustrative extract.
Lloyds/TSB
 unlike some of our competitors we do not believe that environmental improvement
is achieved by simply refusing to lend to certain industry sectors. We are not en
vironmental
policemen but we believe that by working with our customers, we can help
identify potential risks to both the environment and their business, and help th
em
develop appropriate and cost effective solutions.
In the above extract, the perspective adopted by the Co-operative Bank is evoked
in
a negative way in order to construct an alternative position. Leaving aside the
negative
gender and power implications of the statement, the language of accounting is dr
awn on
to subsume CSR issues into those deemed relevant, legitimate and manageable with
in a
business perspective. The role that the bank constructs for itself is one of help
er to the
customer, that is, as responding to a need, this naturalises their activities an
d, arguably,
presents a reasonable case. An implied alternative stance in which some competito
rs are
positioned as obstructive to business needs.
Finally, although funding good was not signalled as particularly important for the
traditional banks through headings or status-relevant clickable images, a close
examination
oftheirwebsitesledtojustafewinstancesoftheexplicitdiscussionofthisissue,illustra
tive
examples are shown below.
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HSBC
We offer socially responsible investments.
Lloyds/TSB
An environmental fund and an ethical fund are available for clients who prefer an
approach that excludes investment in companies in certain business areas.
From a critical perspective, one could read these examples as suggestive of fund
ing of
unethical practices being normative. That this was not clearly signalled is perh
aps unsurprising,
as a response to a growing awareness of environmental and social matters (Moneva
and Llena, 2000), it is unconvincing and is open to alternative interpretation.
An indication,
perhaps,ofhowthistypeofresearchmayattempttodeconstructwhatisregardedasconvention
al
accounting and therefore more usually regarded as unproblematic (see Bebbington
et al., 1999).
How these activities are described is summarised in Table 3.
5.3.
Accounting
terms
as
legitimation
The final section of the analysis focuses on how the language and expertise of f
inancial
accounting legitimacy is deployed in descriptions of the banks CSR-related accoun
ting
mechanisms. Other commentators have suggested that there is a risk for the accou
ntant in
adopting environmental reporting as within their remit (Buhr, 2002). However, I
suggest
that, although this risk represents a dilemma for accounting professionals, a re
quirement
to expand into this field, presently at least, overrides this risk, which is mit
igated through
the legitimacy of the accounting profession itself. As a concept, which is of co
ncern to
organizations, the apparent self-monitoring of CSR behaviours and activities is
described as
performance .Theroleofaccountingandauditingproceduresandlegitimationisapparent,
for example:
HSBC
 WiththehelpofKPMG scorporatesocialresponsibilityteam,wearebuildingrobust
and auditable systems, so that we can gain an accurate picture of our environmen
tal
performance worldwide.
Another example is indicated below.
Royal
Bank
of
Scotland
Risk is at the core of the credit lending process and we have a formal procedure
for
evaluatingthis.Environmentalimpactsareanimportantandintegralpartoftheassessment
and approval process. We recognise the responsibility we have for the potential
environmental impact of our customers operations. However, it is the responsibili
ty
of our customers to ensure they comply with the environmental legislation which
applies to their area of operations.
We can examine the above extracts from many relevant perspectives; however, I sh
all
focus on a few pertinent issues. First, in the report a legitimate identity is c
onstructed for
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dealing with CSR as it is related to financial risk assessment. Power (1997) has
described
how the role of the accountant has developed in terms of CSR auditing. I suggest
that
accounting expertise is implied in the accounting activities themselves. These h
ave strategic
and rhetorical potential, which are drawn on in this instance to locate CSR issu
es as
measurable in the same way that credit lending may be evaluated, even though the
y have
uncertain economic meaning or potential. However, having recognised the responsib
ility
this is passed on to the customer (in the second extract). Finally, by resorting
to legislation
as an arbiter of what is right and proper to do, the organization is devolved of
responsibility.
Working within the law is deemed in many circumstances as an appropriate way to
conduct business. However, in the field of CSR where voluntary behaviours and re
porting
are regarded as indicative of commitment to these issues (Gray, 2002), resorting
to legal
requirements may be interpreted as performing to a minimum standard. The adoptio
n of
procedures that go beyond what is required by law has been taken to indicate tha
t the law
is merely responding to the prevalent Zeitgeist of attention to CSR, rather than
prescribing
appropriate standards. Drawing on legislation, therefore, fails to provide a con
vincing,
plausible, argument.
The final, following illustrative example is from the Royal Bank of Scotland, re
garding
their CSR policy.
the group is firmly committed to creating strong business growth which is not at
the
expense of the environment, quality of life or social equity
In this account the organization appears to attempt to serve two masters and per
haps
represents an example of the report providing information that advances an appro
priate corporateimage(
Owenetal.,2000),socialandenvironmentalissuesbeingrenderedinnocuous
by dominant economic interests (Tinker et al., 1991) and a strengthening of orga
nizational
legitimacy carried out through the deployment of a (subsumed) social and environ
mental
agenda (Gray, 2002). Bullis (1997) has suggested that academics need to consider
how
communication works to preserve the rights and autonomy of organizations while t
he environment
is destroyed. There are contrasts that may be made between the traditional banks
reports and the values-based bank. I propose that the stance adopted by the latt
er makes
visible the absence in the other descriptions. This is in keeping with Gray (2002)
, who
suggests that social accounting is about the opening up of new spaces, but the s
paces themselves
are still up for negotiation. It may be that the impact of values-based organiza
tions
(Owen et al., 2000) is a slow but steady influence on what CSR is
by offering new social
and environmental agendas to be attended to by other organizations.
In Table 4 a summary of the findings is presented.
6.
Discussion
In the analysis section of the paper I have examined some aspects of how the lan
guage
adopted in and the positioning of financial and CSR reports in web-based communi
cations
contributetoconstructingaplausible,legitimated,versionofbankingorganizationsinte
rms
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Table 4
Summary of findings
Traditional banking Org Values-based banking Org
CSR Issues on the Web Opaque signposting
Side issue
Clarity in signposting
Main issue
Growth as good
Temporally transient
A market
Questions growth as good contributes
to profitability
A calculable risk
Investor Issues on the Web Clarity in signposting
Bank as helper
Values bank as obstructer
Opaque signposting
Bank as arbiter
Modern but ethical
Financial inclusion Selective investment
of these activities. The selection of the banking sector for investigation was b
ased on an
expectation that profit-oriented concerns would predominate. The location of CSR
informationsupportsthisinitialexpectation.
Isuggestthat,ratherthantheproductionofstand-alone
reports signalling the growing importance of CSR considerations, the information
is peripheralised,
marginalised and its location disguised which is in keeping with Crowther (2002)
.
This is illustrated as being facilitated particularly in a web-based communicati
ve genre.
By drawing on understanding gained from media analysis it is evident that the cl
ickable
items on a web page function in similar ways to newspaper headings. They offer o
pportunities
to take the reader into further detail; the reader may select to do this. Howeve
r,
the headings themselves also construct messages. This works in at least two ways
. First,
if the reader decides not to pursue the detail, the heading becomes the message.
Second
the heading, or clickable image, plays the part of a portal, through which the r
eader must
pass and from which meaning is taken. The reader is directed through the languag
e used in
the clickable image to a particular view of what lies beyond. The location of CS
R reports
as separate to financial reports functions to take different audiences to differ
ent parts of
the web page. In this way, particular versions of the organization are given cre
dence to the
imagined audience. The contrast provided by the values-based organization in the
study
is stark. Ethical matters are re-constituted as framed within doing business for
traditional
organizations, whereas financial matters are subsumed within an ethical framewor
k for the
values-based organization.
On exploration of the data, I have noted how the language of accounting is seepi
ng into
social and environmental reports. In keeping with much of the critical accountin
g literature
in which there is a call to challenge the hegemonic position adopted by accounta
nts
as arbiters of business speak and measurement (e.g. Gray, 2002; Power, 1997) and
where
accounting assumes sovereignty (Arrington and Puxty, 1991), I propose that accou
nting
terms are also imbued with legitimacy. This is not simply through imposing a cla
ssification
system of measurement; it is in the everyday use of words ordinarily associated
with
accounting procedure, which are unproblematically applied to new areas of interv
ention.
However,contrarily,Iarguethatitisintheirveryusethattheircontestabilitybecomesapp
arent.
Although accounting may assume the discourse of expertise, its entry to new aren
as
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rendersitmostvulnerabletocritique.Whileitisacknowledgedthataccountants behaviours
across a range of activities have been described as an ability to shape interven
tion, I suggest
it is one role of research to problematize the presumed legitimacy of one field
upon
another.
It is evident that for profit organizations are beginning to articulate a stance w
ith
regard to CSR. This, I suggest, is an example of changing conditions that organi
zations are
compelled to consider (Cheney, 1991). However, as increasingly more attention is
being
paid to social and environmental issues, simple articulation will not be suffici
ent. It is in
the interactions of organizations with others that the dominant stance previousl
y taken by
businesses is challenged by having to attend to issues promoted by a once margin
alized
minority. Although it is difficult to assess superficial gloss or actual buy in to
these issues
when focusing on language alone, I propose that a constructionist perspective to
language
enables a making visible and questioning of terms, which would ordinarily remain
taken-
for-granted. It is from this perspective that gaps in hegemonic argument may be
located and
widened.
From examining the accounts of the contrasting organizations in the study, it ha
s become
apparent that the role of values-based organizations is perhaps currently under
estimated
(cf. Owen et al., 2000). The more traditional position is not easily defended in
the light of
their continued existence. It cannot be disputed that they perform a function in
terms of
setting a level of attention to be paid to social and environmental concerns. Ho
wever, as
there are relatively few of these organizations, they do not currently operate i
n competition
with similarly ethically concerned bodies. Hence, we should perhaps speculate up
on
how differentiation may be constructed in an arena of growing numbers of like-mi
nded
organizations.
7.
Concluding
comments
One further area of future research that the present study highlights is a focus
 on how
the organization is presented as operating independent of individuals, we the orga
nization
is the only voice apart from legitimating accounting bodies from beyond the orga
nization.
I argue that the implications of obscurity vis-`
a-vis agency and accountability should be
considered with regard to particular constructions of the organization, CSR and
accounting
behaviours as presented in annual reports. This may be both timely and relevant
in the
present era of reduced confidence in organizational activity.
OneaimofthepaperwastomakevisibleandproblematizearticulationsofCSRactivities
in the organizations web pages investigated in the study. This encourages the rea
der to view
other articulations with a critical eye. The question why this, why now? should le
ad to a
reductionofCSR-related fillers whichcurrentlyhaveapparentkudosinorganizations web
pages.Furthermore,acriticalexaminationoftheimagesthroughwhichthereaderisdirected
towards CSR-relevant information needs to be regarded as status-evoking informat
ion. A
step forward may be to locate the CSR report and a report containing financial i
nformation
in one area entitled, Reports and Accounts , for each year of business. The segrega
tion of
information for intended audiences serves only to problematize organizations inte
ntions
regarding CSR issues.
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Finally, in contrast to grand and bland ambiguously phrased CSR objectives, the
language, legitimacy and plausibility attached to all things accounting is a con
venient measuring
system which retains a business-case focus and system of explanation. However,
simple articulations of CSR activities will cease to function as currency in the
purchase of
legitimacy in this arena, as the continued and growing presence of values-based
organizations
question this as the only possible system of operation.
Acknowledgements
I would like to acknowledge the anonymous referees for most helpful suggestions
and
advice and to thank Andrew D. Brown for his insightful comments on earlier draft
s of this
paper.
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