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Documente Cultură
Expanding Accountability to
Stakeholders: Trends and
Predictions*
JEANNE M. LOGSDON AND PATSY G. LEWELLYN
T
he stakeholder concept has transformed the language of
business responsibility by making more explicit the complex
and diverse relationships that firms have with individuals
and groups in society. It is widely accepted today that executives
have to pay attention to the expressed needs and preferences of
many interest groups. Indeed, public policy often institutionalizes
requirements for reporting about and to stakeholder groups. The
prudent executive will also pay attention to emerging concerns and
new groups that may affect public opinion about business practices
and behavior.
One significant trend in society’s expectations of business is the
pressure to report information about the impact that business has
on perceived social problems. The most recent manifestation of this
trend is a move toward addressing stakeholder interests and “total
stakeholder accountability,” which is spurring the creation of stan-
dards, processes, and disclosure requirements for comprehensive
social audits.
This article begins with a brief review of the evolution of account-
ing and reporting to specific stakeholder groups in the United States
and then examines the current movement to set global social
accountability standards. This movement is farther along in Western
Jeanne Logsdon is a Regents Professor at the Anderson School of Management, University of New
Mexico. Patsy Lewellyn is a John M. Olin Professor, Accounting, at the University of South
Carolina Aiken.
*We express our appreciation to Donna J. Wood and Kimberly S. Davenport for their helpful com-
ments and scholarly support throughout this project. We also thank the Alfred P. Sloan Founda-
tion, and Gail Pesyna for partial funding to complete the research.
© 2000 Center for Business Ethics at Bentley College. Published by Blackwell Publishers,
350 Main Street, Malden, MA 02148, USA, and 108 Cowley Road, Oxford OX4 1JF, UK.
420 BUSINESS AND SOCIETY REVIEW
REVIEW OF ACCOUNTABILITY TO
INDIVIDUAL STAKEHOLDERS
Shareholders
Employees
Consumers
general norm now is that neighbors and communities have the right
to know of exposure to risk.
Expanding Accountability
IMPACTS ON MANAGEMENT
Social accounting and reporting embrace the notion that the corpo-
ration is responsible and accountable to the public for its actions
beyond financial performance. The social report, envisioned first in
the 1940s, remained theoretical until attention was renewed during
the 1970s.10 Some large corporations (such as Bank of America,
General Motors, and Migros of Switzerland) began to provide such
428 BUSINESS AND SOCIETY REVIEW
Development of Standards
Hierarchy of Characteristics:
Accountability:
Transparency, Responsiveness, Compliance
Inclusivity:
All Stakeholders
Scope and nature of Meaningfulness of Management of
process information process
Completeness Quality assurance Embeddedness
Materiality Accessibility Continous
Regularity/timeliness Information quality improvement
NOTES