The Impact of Civic Accounting on Enhancing Corporate Accountability to Stakeholders

Subject Areas : Behavioral research methodology in accounting and auditing

Mohammad Ali Parvishi ¹ , Meysam Arabzadeh ² , Mehdi Safari Gerayli ³ , Hasan Ghodrati ⁴

1 - PhD., Student, Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran.
2 - Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran
3 - Department of Accounting, BG.C, Islamic Azad University, Bandargaz, Iran
4 - Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran

Received: 2025-08-01 Accepted : 2025-11-15 Published : 2025-11-23

Keywords: Civic accounting, social accounting, corporate accountability, stakeholders.,

Abstract :

Objective: In contemporary contexts, accounting extends beyond its legal obligations and assumes a broader social responsibility. Drawing on frameworks such as social accounting, it operates as an active mechanism responding to societal and capital market expectations. Rather than aligning solely with profit-driven ideologies, civic accounting seeks to promote equity and uphold stakeholder rights across all organizational levels. This study aims to design a civic accounting model as a form of social accounting and evaluate its impact on enhancing corporate accountability to stakeholders.

Method: This research adopts a quantitative approach. Data were analyzed using the Partial Least Squares (PLS) method. The statistical population in the year 2025 (Iranian calendar year 1404) includes managers of brokerage firms and experts from various sectors of the capital market. A sample of 384 individuals was selected using standard sampling techniques. The research instrument was a validated standard questionnaire.

Findings: The results indicate that the proposed six-dimensional civic accounting model-comprising cognition, participation, information systems, strategic orientation, legitimacy, and foresight-positively influences corporate responsiveness to stakeholders across legal, professional, and personal dimensions.

Conclusion: The foundational driver of civic accounting in restoring stakeholder rights is
the infrastructure of the accounting information system. This infrastructure facilitates a more comprehensive understanding of market dynamics aligned with stakeholder needs. As the first empirical investigation into civic accounting, this study demonstrates that such a model enhances corporate accountability and contributes significantly to the social legitimacy of the capital market.

 

 

References:

ارشدی، نسرین؛ هاشمی شیخ شبانی، سید اسماعیل (1388). رابطه عدالت سازمانی ادراک‌ شده و انگیزه‌های رفتار مدنی سازمانی با رفتار مدنی سازمانی در یک سازمان صنعتی. دست‌آوردهای روان‌شناختی، 16(2)، ص219-236.
اقدم‌مزرعه، یعقوب؛ نیکومرام، هاشم؛ رهنمای رودپشتی، فریدون؛ بنی‌مهد، بهمن (1398). آزادی‌های مدنی و توسعه حسابداری. پژوهش‌های حسابداری مالی و حسابرسی، 11(43)، ص27-48.
بنابی‌قدیم، رحیم؛ واعظ، سید علی (1400). بررسی رابطه شاخص مسئولیت‌پذیری اجتماعی با قابلیت مقایسه اطلاعات حسابداری در مراحل چرخه عمر شرکت. بررسی‏‌های حسابداری و حسابرسی، 28(1)، ص1-30.
پرویشی، محمدعلی؛ عرب‌زاده، میثم؛ صفری گرایلی، مهدی؛ قدرتی، حسن (1402). طراحی مدل حسابداری مدنی: مدل‌سازی بازنمایی سیستمی. حسابداری و منافع اجتماعی، 13(2)، ص169-202.
داوودی ‌نصر، مجید؛ طالب‌نیا، قدرت‌اله؛ رویایی، رمضانعلی؛ صالحی‌امیری، سید رضا (1397). تبیسن ‌الگوی مناسب حسابرسی مسئولیت اجتماعی (اخلاق اجتماعی) شرکت‌ها از دیدگاه حقوق بشر و ارزش‌های اجتماعی با استفاده از رویکرد تحلیل عاملی اکتشافی و مدل‌سازی معادلات ساختاری. دانش حسابداری و حسابرسی مدیریت، 7(25)، ص99-122.
صفرزاده‌بندری، محمدحسین؛ جودکی‌چگنی، زهرا (1400). حسابداری منافع اجتماعی در بخش عمومی. حسابداری و منافع اجتماعی، 11(2)، ص103-125.
کرمی، اصغر؛ غلامی‌جمکرانی، رضا؛ تقی‌پوریان، یوسف؛ حاجیها، زهره (1400). ارتقای سطح اعتماد اجتماعی با شناسایی و رتبه‌بندی راهبردهای بهبود کیفیت حسابرسی از دیدگاه ذینفعان به روش فازی ذوزنقه‌ای. حسابداری مدیریت، 14(48)، ص103-128.
Al Mohameed, M., Belal, A., Gebreiter, F. & Lowe, A. (2021). Social accounting in the context of profound political, social and economic crisis: the case of the Arab Spring. Accounting, Auditing & Accountability Journal, 34(5), p. 1080-1108. https://doi.org/10.1108/AAAJ-08-2019-4129
Amonoo Nkrumah, B., Qian, W., Kaur, A. & Tilt, C. (2023). Stakeholder accountability in the era of big data: an exploratory study of online platform companies. Qualitative Research in Accounting & Management, 20(4), p. 447-484. https://doi.org/10.1108/QRAM-03-2022-0042
Apostol, O.M. (2015). A project for Romania? The role of the civil society’s counter-accounts in facilitating democratic change in society, Accounting. Auditing & Accountability Journal, 28(2), p. 210-241. https://doi.org/10.1108/AAAJ-07-2012-01057
Belkaoui, A, (1983). Economic Political and Civil Indicators and Reporting and Disclosure Adequacy Empirical Investigation. Journal of Accounting and Public Policy, 13(2), p. 207-219.
Bovens, M. (2005). Public Accountability. In: the Oxford Handbook of Public Management; Ferlie, E., Lynne, L. & Pollitt, C., Eds. Oxford University Press.
Bovens, M. (2007). Analysing and Assessing Accountability: A Conceptual Framework. European Law Journal, no.13, p. 447-468.
Charles, K.D. (2001). Organizational civility: Issues, problems and solutions to creating environments of civility in the workplace, advancing Oklahoma scholarship, research and institutional memory. URL= https://hdl.handle.net/11244/337
Chatterjee, S. & N.S., S. (2022). Artificial intelligence and human rights: a comprehensive study
from Indian legal and policy perspective. International Journal of Law and Management, 64(1),
p. 110-134. https://doi.org/10.1108/IJLMA-02-2021-0049
Delgado, L.E. (2021). Accounting for Democracy: Excessive Subjects in a State of Consensus. Boundary, 48(3), p. 115–144. https://doi.org/10.1215/01903659-9155761
Dubnick, M. (2005). Accountability and the Promise of Performance: In Search of the Mechanisms. Public Performance and Management Review, 28(3), p. 376–417.
Erhardt, J., Freitag, M. & Filsinger, M. (2022). Leaving democracy? Pandemic threat, emotional accounts and regime support in comparative perspective, Taylor&Franccis online, 46(3),
p. 477–499. https://doi.org/10.1080/01402382.2022.2097409
Erkkila, T. (2007). Governance and Accountability: A Shift in Conceptualization, Public Administration Quarterly. In: Annual Conference of European Group of Public Administration, p. 1-39.
Favere-Marchesi, M. & Pincus, K.V. (2006). The impact of accountability on the processing of nondiagnostic evidence. In: Arnold, V., Clinton, B.D., Luckett, P., Roberts, R., Wolfe, C. & Wright, S. (Ed.), Advances in Accounting Behavioral Research (Advances in Accounting Behavioural Research, Vol. 9). Emerald Group Publishing Limited, Bingley, p. 1-25.
https://doi.org/10.1016/S1475-1488(06)09001-6
Ferreria, V., Pié, L. & Terceño, A. (2021). Economic impact of the bioeconomy in Spain: Multiplier effects with a bio social accounting matrix. Journal of Cleaner Production, 298(1), p. 1-23.
https://doi.org/10.1016/j.jclepro.2021.126752
Goddard, A. (2021). Accountability and accounting in the NGO field comprising the UK and Africa – A Bordieusian analysis. Critical Perspectives on Accounting, 78(2), p. 105-134.
https://doi.org/10.1016/j.cpa.2020.102200
Gray, R., Andrew, B. & Jeff, M. (2013). New accounts: Towards a reframing of social accounting. Accounting Forum, 3(4), p. 45-67.
Gray, R., Bebbington, J. & Collison, D. (2006). NGOs, civil society and accountability: making the people accountable to capital. Accounting, Auditing & Accountability Journal, 19(3), p. 319-348. https://doi.org/10.1108/09513570610670325
Greenhalgh, K. & Harradine, D. (2014). Civil society commissioning: the accounting contribution to strategy. Public Money & Management, 34(1), p. 19-26.
https://doi.org/10.1080/09540962.2014.865928
Hall, M. & O'Dwyer, B. (2017). Accounting, non-governmental organizations and civil society: The importance of nonprofit organizations to understanding accounting, organizations and society. Accounting, Organizations and Society, 63(4), p. 1-5. https://doi.org/10.1016/j.aos.2017.11.001
Katz, D. (1964). The motivational basis of organizational behavior. Behavioral Science, 9(2),
p. 131-146.
Killian, Sh. & O'Regan, Ph. (2016). Social accounting and the co-creation of corporate legitimacy. Accounting, Organizations and Society, 50(1), p. 1-12. https://doi.org/10.1016/j.aos.2016.02.004
Laughlin, R.C. (2007). Critical reflections on research approaches, accounting regulation and the regulation of accounting. The British Accounting Review, 39(4), p. 271-289.
https://doi.org/10.1016/j.bar.2007.08.004
Lazkano, L. & Beraza, A. (2019). Social Accounting for Sustainability: A Study in the Social Economy. Sustainability, 11(2), p. 68-94. https://doi.org/10.3390/su11246894
Leoni, G., Lai, A., Stacchezzini, R., Steccolini, I., Brammer, S., Linnenluecke, M. & Demirag, I. (2022). The pervasive role of accounting and accountability during the COVID-19 emergency. Accounting, Auditing & Accountability Journal, 35(1), p. 1-19.
https://doi.org/10.1108/AAAJ-10-2021-5493
Lepistö, S., Dobroszek, J., Lepistö, L. & Zarzycka, E. (2020). Controlling outsourced management accounting to build legitimacy. Qualitative Research in Accounting & Management, 17(3),
p. 435-463. https://doi.org/10.1108/QRAM-05-2019-0062
Li, P., Lai, J., Zhou, D., Yang, Y., Wu, W. & Fang, J. (2023). Multi-authority anonymous authentication with public accountability for incentive-based applications. Computer Networks, 231(1), p. 362-379. https://doi.org/10.1016/j.comnet.2023.109828
Mulgan, R. (2003). One Cheer for Hierarchy-Accountability in Disjointed Governance. Political Science, 55(2), p. 6-18.
Newell, G. & Marzuki, M.J.B. (2018). The significance and performance of property companies on the AIM stock market. Journal of European Real Estate Research, 11(1), p. 96-129.
Petersmann, E.U. (2019). Constitutional functions and constitutional problems of international economic law. Routledge.
Retolaza, J.L. & San-Jose, L. (2021). Understanding Social Accounting Based on Evidence. SAGE Open, p. 1–14. https://doi.org/10.1177/21582440211003865
Sinclair, A. (1995). The Chameleon of Accountability: Forms and Discourses. Accounting Organizations and Society, 20(2), p. 219-237.
Siriwardhane, P. & Yapa, P.W.S. (2021). Human Rights from a Social Accounting Perspective in a Postconflict Environment: The Case of Sri Lanka. Australasian Accounting, Business and Finance Journal, 15(4), p. 93-120.
Smith, C.A., Organ, D.W. & Near, J.P. (1983). Organizational citizenship behavior: Its nature and antecedents. Journal of Applied Psychology, 68(4), p. 653-663.
Tran, V.T. & et al. (2022). Factor affecting the implementation of responsibility accounting on firm performance – Empirical analysis of listed textile firms. Cogent Business & Management, 9(1),
p. 203-226. https://doi.org/10.1080/23311975.2022.2032912
Walsh, B.M. & Magley, V. (2020). Workplace civility training: understanding drivers of motivation to learn. The International Journal of Human Resource Management, 21(17), p. 2165-2187.
https://doi.org/10.1080/09585192.2018.1441164
Zanellato, G. & Tiron-Tudor, A. (2022). How cultural dimensions are shaping social expectations: the case of European state-owned enterprises' nonfinancial reporting. Journal of Applied Accounting Research, 23(1), p. 99-121. https://doi.org/10.1108/JAAR-04-2021-0116