Accounting for a better world: towards a conceptual framework to enable corporate reporting to contribute to the sustainability of the good life

Abstract

Purpose

The aim of this paper is to propose a basis upon which accounting reporting can be developed to reflect real values and the real economy. It aims to address the environmental considerations discussed in the UN debate (Bebbington and Unerman, 2020) and the concern for a “better life-world”, which is the theme of this special issue.

Design/methodology/approach

Addressing the task involves the application of the philosophy of pragmatic constructivism (which explains how people can relate to their reality in ways that lead to successful action) and the philosophical concept of the “good life” (which establishes the values to be pursued through action and so defines action success). Also, it outlines the necessary characteristics of measurement frameworks if they are to be effective in the development and control of human practices to achieve desired values.

Findings

This paper proposes a conceptual framework for guiding the measurement of how a sustainable good life has improved and/or deteriorated as a result of organisational activities. It outlines a system of concepts on basic and instrumental values for analysing the condition of maintaining a sustainable good life in real terms. This is related to the financial results and societal regulations to analyse and adjust controls according to the real economic goals. Also, it provides a system of value measurands to produce valid information about the development of a sustainable good life. The measurand makes accounting reporting reflect the conditions of the good life that constitute the real economy instead of merely the financial economy driven by shareholder capitalism. Providing tools to analyse whether the existing practices of business and social regulations promote or counteract the real economic goals of producing a sustainable good life means the measurement system proposed makes the invisible hand of the market visible.

Originality/value

The mechanism proposed to enable accounting reporting to reflect real values and the real economy is a new conceptual framework that will allow accounting to more fully realise its potential to contribute to a “better world”. In aiming to serve a sustainable good life, accounting reporting will inherently foster ethical social practices.