From the Big Five to the Big Four? Exploring extinction accounting for the rhinoceros

Jill Atkins,Warren Maroun,Elisabetta Barone,Barry Colin Atkins

doi:10.1108/aaaj-12-2015-2320

Abstract

PurposeThe purpose of this paper is to explore a possible framework for extinction accounting which builds on but also extends significantly the existing GRI guidelines relating to species identified by the International Union for the Conservation of Nature Red List as under threat of extinction.Design/methodology/approachThe paper analyses disclosures relating to rhinoceros conservation and protection produced by top South African-listed companies in order to assess the current state of “extinction accounting”. Following this analysis, the authors explore and discuss a potential framework for extinction accounting which may be used by companies to demonstrate their accountability for species and disclose the ways in which they are working alone, and in partnerships, to prevent species extinction.FindingsCorporate disclosures relating to rhinoceros may be interpreted as emancipatory. The authors identify several disclosure themes dealing with rhinoceros in integrated and sustainability reports of large South African companies and on their websites. Contrary to initial expectations, there is evidence to suggest corporate awareness of the importance of addressing the risk of this species becoming extinct.Research limitations/implicationsThe authors have relied on public corporate disclosures and would like to extend the work further to include interview data for a further paper.Practical implicationsAn extinction accounting framework may be applied to corporate accounting and accountability for any species under threat of extinction. The framework may also be considered for use as a tool for institutional investors as well as NGO engagement and dialogue with stakeholder companies.Social implicationsThe rhinoceros has, from the analysis, significant cultural, heritage, eco-tourism and intrinsic value. Developing and implementing an emancipatory extinction accounting framework to prevent extinction will have a substantial social and environmental impact.Originality/valueThis is the first attempt to the knowledge to explore accounting for extinction and a possible extinction accounting framework. It is also the first attempt to investigate accounting and accountability for the rhinoceros.

Highlights

Accounting is more than a mere technical methodology for accumulating data and facilitating “neutral” representations of financial position and performance
While financial paradigms continue to characterise most corporate reporting initiatives (Tregidga et al, 2014), given sufficient time, emerging forms of ESG reporting can alter perceptions and lead to the creation of a better world (Pearce, 2007; Atkins et al, 2015). We demonstrate this transformative or emancipatory potential by examining disclosures dealing with the plight of South Africa’s rhinoceroses provided by some of the largest companies listed on the Johannesburg Stock Exchange ( JSE)
Many of these themes indicate the emergence of a corporate discourse aligned with a social narrative which is championing the plight of the rhinoceros

Summary

Introduction

Accounting is more than a mere technical methodology for accumulating data and facilitating “neutral” representations of financial position and performance. This has The Big Five to been demonstrated in a management accounting context where accounting systems are the Big Four designed to monitor, organise and correct business processes (Mennicken and Miller, 2012). The last 20 years have witnessed an exponential increase in the extent of environmental, social and governance (ESG) disclosures being included in annual and, later, integrated reports (Solomon and Maroun, 2012; Hughen et al, 2014).

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Conclusion