Accounting and Industrial Relations: a Critical Theory Perspective

Abstract

Over the years there has been a diversity of attitudes and approaches to the subject of financial disclosure to employees and their representatives. There has been support for and resistance to the idea of 'accounting to the workforce' from managers, employees, unions, accounting researchers and practitioners, Government legislators and political parties. However, the basis of their respective concerns is quite different. This thesis seeks to document that diversity, to situate it theoretically and to consider its implications for issues of policy and practice. Based on a critical theory approach and building on the work of Fox (1973, 1985a) and Ogden & Bougen (1985), a framework is presented which seeks to explain observed differences in terms of differences in underlying 'worldviews' or ideologies, based on varying sets of assumptions about society and organisations. Different sets of assumptions - unitarist, pluralist and radical - are seen to lead to different conceptualisations of the management-labour relationship which, in turn, lead to different sets of 'problems', and quite different conclusions concerning the ends to be served by the disclosure of accounting information to employees and labour representatives. The implications of these alternative worldviews for the social construction of the role of accounting in industrial relations are considered in depth. The thesis also makes recommendations in the areas of accounting theory, education and practice. These centre around the importance of dispelling preconceived notions accountants and others may have about accounting being a 'boring technical activity', devoid of political significance. Acceptance of the existence of multiple ideologies means that accounting choices are not and never can be neutral. The main practical concern has been to facilitate labour's entry to the 'world of accounting' on its own terms. Specific recommendations are made concerning the regulated disclosure of financial information to labour representatives, accounting training for union officials and the involvement of the labour movement in accounting policymaking bodies. The importance of sensitising accountants to multiple philosophical perspectives on accounting issues is also emphasised. Contemporary accounting models are seen to be dominated by capital-oriented values and perspectives and the possibility of developing an accounting 'body of knowledge' tied to the interests of a broader range of stakeholders is explored.