Holly Deviarti
ABSTRACT
The world oil price crisis has forced national oil and gas companies to make changes. In response to the environmental changes, the companies have been adopting various practices to survive in business. Most companies abandon their CSR activities to emphasize efficiency by reason of the companies’ survival without considering social and environmental interests. To deal with an uncertain economic environment due to falling world oil prices, SKK Migas is preparing strategic adaptations. Management accounting can play an important role in the company's surviving strategy to support the CSR program. The literature review will be supported by NIS (New Institutional Sociology Theory), this theory interprets accounting practices as characteristics that could legitimize organizations. The NIS focus on social and technical, both within and without private organizations, that considered in the process of managerial accounting changes. In practice, it may be difficult to realize predetermined means-end relationships in the use of accounting to improve financial results under the management approach, given the wider concerns of organizational change. This study investigates management accounting practices in organizational change, specifically by focusing on internal policy for the CSR program. The contribution of this study to the literature involves an understanding of CSR activities with budgetary control as a means of controlling management accounting practices.
- Aradea A., Yuliana, A., Himawan, H. 2010. " Change Management Application to Improve Business Processes in Achieving Organizational Competitive Advantages." Seminar Nasional Informatika. Yogyakarta, Indonesia. "Veteran" University of National Development Yogyakarta.Google Scholar
- Bennett, M., Schaltegger, S., Zvezdov, D. 2013. Exploring Corporate Practices in Management Accounting for Sustainability. ICAEW.Google Scholar
- Bowen, H. R. 1953. Social responsibilities of the businessman. New York: Harper & Row.Google Scholar
- Carroll, A. B. 1979. A three-dimensional conceptual model of corporate performance. Academy of management review, 4(4), 497–505.Google Scholar
- Carruthers, B.G. 1995. “Accounting, Ambiguity and the New Institutionalism”, Accounting, Organizations and Society, 20(4), pp. 313-328.Google ScholarCross Ref
- Cheney G, & McMillan J.J. 1990. Organizational rhetoric and the practice of criticism, J. Appl. Comm. Res. 18(2): 93-114.Google ScholarCross Ref
- Endenich C. 2014. "Economic crisis as a driver of management accounting change: Comparative evidence from Germany and Spain," Journal of Applied Accounting Research, Emerald Group Publishing, vol. 15(1), pages 123-149, May.Google Scholar
- CIMA. 2016. Financial Crisis and Changes in Management Controls in Banks. Copenhagen Business School.Google Scholar
- Dillard, J.F., Rigsby, J.T. and Goodman, C. (2004), “The making and remaking of organization context: duality and the institutionalization process”, Accounting, Auditing & Accountability Journal, Vol. 17 No. 4, pp. 506-42.Google ScholarCross Ref
- DiMaggio, P. J. and Powell, W. W. 1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational Fields. American Sociological Review, 48, 147-160. Accounting Research 19: 287–300. doi:10. 1016/j.mar.2008.09.003Google ScholarCross Ref
- Epstein, E. M. 1989. Business Ethics, Corporate Good Citizenship and the Corporate Social Policy Process, Journal of Business Ethics, Vol. 8, pp. 583-595.Google ScholarCross Ref
- Erokhin, Vasily & Endovitsky, Dmitry & Bobryshev, Alexey & Kulagina, Natalia & Ivolga, Anna. 2019. Management Accounting Change as a Sustainable Economic Development Strategy during Pre-Recession and Recession Periods: Evidence from Russia. Sustainability. 11. 3139. 10.3390/su11113139.Google Scholar
- Fernandez, B. 2016. Reforming the Oil Crisis. Sense & Sustainability: Fresh Perspectives on Sustainable Development. https://www.senseandsustainability.net/2016/03/04/reforming-the-oil-crisis/Google Scholar
- Frederick, W. C. 1960. The growing concern over business responsibility. California Management Review, 2(4), 54–61.Google ScholarCross Ref
- Friedman, M. 1970. The social responsibility of business is to increase its profits. The New York Times Magazine.Google Scholar
- Friedman, M. 2007. 'The social responsibility of business is to increase its profits'. in WC Zimmerli, M Holzinger & K Richter (eds). Corporate Ethics and Corporate Governance, Springer Berlin Heidelberg, pp. 173-8.Google Scholar
- Giannarakis, G., & Theotokas, I. 2011. The Effect of Financial Crisis in Corporate Social Responsibility Performance. International Journal of Marketing Studies Vol. 3, No. 1. www.ccsenet.org/ijmsGoogle ScholarCross Ref
- Heeren, A., V. 1998. Management Accounting for sustainable development. A chain related case study between Costa Rica and the Netherlands. Partnership and Leadership, Building Alliances for a Sustainable Future.Google Scholar
- Jacob, C., K. 2012. The Impact of Financial Crisis on Corporate Social Responsibility and Its Implications for Reputation Risk Management. Journal of Sustainability Science and ManagementGoogle Scholar
- Jalagat, R. 2016. The Impact of Change and Change Management in Achieving Corporate Goals and Objectives: Organizational Perspective. International Journal of Science and Research (IJSR)Google Scholar
- Jones, T. M. 1980. Corporate social responsibility revisited, redefined. California Management Review, 22(3), 59–67.Google ScholarCross Ref
- Karaibrahimoglu, Y., Z.2010. Corporate social responsibility in times of financial crisis. African Journal of Business Management Vol. 4(4), pp. 382-389, April 2010 Available online at http://www.academicjournals.org/AJBM ISSN 1993-8233 © 2010 Academic JournalsGoogle Scholar
- Kasim, N., A. 2004. Corporatisation, Loose Coupling and Stability - Accounting Change in a Malaysian Public Utility. Thesis Manchester School of Accounting and FinanceGoogle Scholar
- Klára, P. 2011. The Impact of Recession on the Implementation of Corporate Social Responsibility in Companies Lapsley, I. and Mitchell, F. (1996), “The accounting challenge: performance measurement in the private and public sectors”, in Lapsley, I. and Mitchell, F. (Eds), Accounting and Performance Measurement: Issues in the Private and Public Sectors, Paul Chapman, London, UK, pp. 3-6.Google Scholar
- Malmi, T., and D. A. Brown. 2008. “Management Control Systems as a Package – Opportunities, Challenges and Research Directions.” ManagementGoogle Scholar
- Marquez, T., Galende, J., Cruz. P., Ferreira, M. P., 2014. Surviving downsizing and innovative behaviors: a matter of organizational commitment. International Journal of Manpower Vol. 35 No. 7, 2014 pp. 930-955 © Emerald Group Publishing Limited 0143-7720 DOI 10.1108/IJM-03-2012-0049Google ScholarCross Ref
- Marrewijk, M. 2003. Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Communion (Vol. 44).Google Scholar
- Otley, D. 1999. Performance Management: A Framework For Management Control Systems Research. Management Accounting Research 10(4):363-382. DOI: 10.1006/mare.1999.0115Google ScholarCross Ref
- Parket, R. and Eibert, H. 1975. “Social responsibility: the underlying factors”, Business Horizons, Vol. 18 No. 4, pp. 5-10Google ScholarCross Ref
- Pavlatos, O.; Kostakis, H. 2015. Management Accounting Practices before and during Economic Crisis: Evidence from Greece. Adv. Account. Inc. Adv. Int. Account. 2015, 31, 150–164.Google Scholar
- Rausch, A., & Brauneis, A. 2015. The effect of accountability on management accountants' selection of information. Review of Managerial Science, 9(3), 487–521. https://doi.org/10.1007/s11846-014-0126-8Google ScholarCross Ref
- Reeves, M. & Deimler., M. 2011. Adaptability: The New Competitive Advantage. Harvard Business Review. https://hbr.org/2011/07/adaptability-the-new-competitive-advantageGoogle Scholar
- Reis, L. G. (2011). Trends in Studies in Management Accounting from the Perspective of Institutional Theory. In C. Parisi & E. Megliorini (Org.). Contabilidade Gerencial. (1ª Ed. Cap. 15, pp. 331-346). São Paulo: Atlas.Google Scholar
- Richardson, P., Batt, C., E., & Karlsson, T. 2015. Economic crisis and changes in management accounting and control: a longtitudinal study of internal controls. For presentation at the 8th Conference On Performance Measurement and Management Control, Nice, France.Google Scholar
- Rogers, K. 2020. Too Much Oil: How a Barrel Came to Be Worth Less Than Nothing. New York Times. https://www.nytimes.com/2020/04/20/business/oil-prices.htmlGoogle Scholar
- Scapens, W. R. (1994). Never mind the gap: towards an institutional perspective on management accounting practice. Management Accounting Research, 5, 301-321. Vandenberg,Google ScholarCross Ref
- Schwartz, MS & Carroll, AB. 2003. 'Corporate Social Responsibility: A Three-Domain Approach'. Business Ethics Quarterly. vol. 13, no. 4, pp. 503-30.Google ScholarCross Ref
- SKK Migas. 2020. Transformasi Hulu Migas. Bumi Buletin.Google Scholar
- Subrata, G., & Thamrin, M. 2015.The Effect of Changes in Organizational Structure On The Increasing of Turn Over Intention.Google Scholar
- Suchman, MC. 1995. 'Managing legitimacy: Strategic and institutional approaches', Academy of Management Review. vol. 20. no. 3, pp. 571-610Google ScholarCross Ref
- Teo, H, H.,Wei, K.K., & Benbasat, I. 2003. Predicting intention to adopt interorganizational linkages: An institutional perspective. MIS Q., 19–49.Google Scholar
- Vailatti, J. L., Rosa, F., Vecente E F. R. 2017. Institutional Theory Applied To Management Accounting Analysis of Theoretical and Methodological Contribution of International Publication Occurred in The 2006-2015 Period. Revista Catarinense da Ciência Contábil, ISSN-e 2237-7662, ISSN 1808-3781, Vol. 16, Nº. 47, 2017 (Ejemplar dedicado a: Janeiro-Abril), págs. 97-111Google Scholar
- Wahyuni, N., & Triatmanto, B. 2020. The effect of the organizational change on company performance mediated by changes in management accounting practices. Contents lists available at GrowingScience Accounting. Homepage www.GrowingScience.com/ac/ac.htmlGoogle Scholar
- Walton, C. C. 1967. Corporate social responsibilities. United States of America: Wadsworth Publishing Company.Google Scholar
- Wanderley, C. D. A., Miranda, L. C., Meira, J. M.D., & Cullen, J. 2011. Management Accounting Change: A Model Based on Three Different Theoretical Frameworks. BASE – Revista de Administração e Contabilidade da Unisinos 8(2):111-121, abril/junho 2011 2011 by Unisinos - doi: 10.4013/base.2011.82.01Google ScholarCross Ref
- Woodward & Clyde. 1999. Key Opportunities and Risks to New Zealand's Export Trade from Green Market Signals. New Zealand Trade and Development Board, (1999), Final paper, Sustainable Management Fund Project 6117Google Scholar
- Zainal, R. I. 2015. Mandated Corporate Social Responsibility ( CSR ) In Indonesia: Institutional and Stakeholder Perspectives. School of Management College of Business (Issue August 2015).Google Scholar
Recommendations
Practice Implementation Within a Multidivisional Firm: The Role of Institutional Pressures and Value Consistency
This paper proposes a model to predict when the subunits of a multidivisional firm implement a practice adopted by the firm more or less extensively, focusing on the intraorganizational environment. Drawing on institutional arguments, I propose that a ...
Institutional Equivalence: How Industry and Community Peers Influence Corporate Philanthropy
This paper explores how organizations respond to simultaneous institutional influences from two distinct sources: the industry in which they operate and the local geographic community in which they are headquartered. We theorize that the existence of ...
Corporate Social Responsibility: Case Study in UAE Organizations
Corporate social responsibility CSR is a western concept that is penetrating Middle Eastern countries, and the UAE is the most appropriate region to offer insights into CSR because other Middle Eastern countries are not adopting the concept quite as ...
Comments