Addressing systemic social and environmental challenges : the role of accounting and accountability practices

Abstract

PURPOSE : This study explores the role of accounting and accountability practices in enabling organisations to identify and address systemic social and environmental challenges. DESIGN/METHODOLOGY/APPROACH : The study builds upon a reflective thematic analysis of the theoretical and practical insights collected from the contributions to the first volume of the AAAJ special issue on " The impact of accounting and accountability in identifying and mitigating social and environmental grand challenges". Further, this research develops a theoretical framework that synthesises four key thematic subjects of research: Organisational Purpose ("Why"), Strategy ("What"), Innovative performance measurement practices and organisational processes ("How"), and Impact measurements ("Where" and "When"). FINDINGS : This study fosters critical reflection on the role of accounting and accountability practices in addressing systemic and global challenges. The theoretical framework highlights that adopting more comprehensive and forward-looking accounting and accountability practices that foster purpose-driven strategies and innovative impact assessments across different time dimensions (past, present, and future) can enhance organisational responses to address social and environmental systemic challenges. ORIGINALITY/VALUE : This study contributes to the accounting literature on social and environmental grand challenges by developing a theoretical and multidimensional framework for organisations to address social and environmental grand challenges and effect systemic change. It extends current debates on the limitations of conventional accounting practices by emphasising the necessity of a broader, more integrative and intergenerational accountability model. The findings offer practical insights for organisations, policymakers, and researchers seeking to develop accounting and accountability mechanisms that effectively capture and respond to complex social and environmental phenomena.