Written by Marc Oliveras

Article 4, Volume 4 Issue 2

Virtues of integrity and veracity in reporting, data alone is not enough. A case study approach

Natàlia Cugueró-Escofet

Núria Villaescusa Serrano

DOI: 10.26595/eamr.2014.4.2.4

Abstract


One of the claims made in reporting is that firms should publish more information, both quantitative and qualitative. The annual reports of companies are thought precisely to fulfill this function: allowing the ones who have any type of interest in companies to be aware of the data, both quantitative and qualitative (in the form of annual reports). In this paper, we argue that data alone is not enough. We use the case of the company Fish&Fish, Inc. to show that the problem goes beyond the data itself. The most well calculated data and the most detailed reports could be insufficient to deter future ethical misbehaviors or to perform ethical behavior for the stakeholders. We argue that data must be complemented with several ethical virtues: integrity on the managerial part, veracity in the way reports are written. These two should also be complemented with justice, meaning that balancing several interests that parties have at the same time and managing the way integrity and veracity needs to be implemented in reporting decisions. Looking at Fish&Fish, Inc. we show that the main problems was the lack of veracity and integrity in the reporting that may mask present or future fraud.

Keywords


  • Reporting
  • Management Control Systems
  • Justice
  • Fairness
  • Virtues
  • Integrity
  • Veracity
  • Accounting fraud

Download Article

Written by Marc Oliveras

Article 1, Volume 3 Issue 1:

The impact of ABC costing systems to solve managerial cost problems: a real improvement, a fad or a fashion?

Natàlia Cugueró-Escofet and Àngels Fitó-Bertran

DOI: 10.26595/eamr.2014.3.1.1

Abstract


One of the main problems of management profession is that there is not yet a corpus of theories and knowledge that can assist professionals to take adequate choices for solving the problems they actually have. Initially, we can assume that the inherent reasons for the explosion and diffusion of ABC are that these systems improve the efficiency of the selected strategy. However, a significant number of failures reveal a situation that can be attributed to other potential reasons, for instance a bad implementation. The existence of this paradox, lead us to investigate alternatives reasons for the diffusion of ABC. We show that there are alternative reasons for the diffusion of ABC, which may be a “fad logic” rather than a “problem solving logic” that we think should dominate management. We also argue that ABC systems are not introducing a revolutionary improvement in terms of the conceptualization of costs, as ABC is simply a way of using a full cost approach with a different conception of a cost center. Then, it can be useful mainly in cases where the decisions to be made can be better made using a full cost instead of other cost measures.

 

Written by Marc Oliveras

Article 4, Volume 2 Issue 1:

Justice: a sufficient condition for goal congruence in management control systems

Natàlia Cugueró-Escofet and Josep M. Rosanas

DOI: 10.26595/eamr.2014.2.1.4

Abstract


Control systems are a fundamental tool in the management process. Management control systems have been judged under the criterion of goal congruence, i.e., on whether the possible rewards given to people when they take specific actions benefit at the same time individuals and the organization as a whole. Often the concept of justice is not included in the analysis. In recent papers, some theoretical developments have shown that the concept of justice is essential to their dynamics, because it has the potential to change the attitudes of people towards the organization and, therefore, their interest in future decisions. But these developments have been essentially conceptual and have not attempted to go beyond theoretical terms. This paper, using a stylized example, tries to show how this framework can be applied in practice. It also attempts to clarify the concept of goal congruence, by distinguishing when it is merely quantitative or qualitative, and when it can be considered ‘ weak ‘ or ‘ strong ‘. Finally, it goes back to the conceptual model of Cugueró-Escofet and Rosanas (2013) and shows how the practical vision of this case adapts to the conceptual analysis offered in their framework, and draws some conclusions.

Keywords


  • Management control systems
  • Goal congruence
  • Formal justice
  • Informal control systems
  • Informal justice

Download Article

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close