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Introduction
Corporations quite naturally present their activities, and the ensuing results, in the best possible
way when producing their annual reports (see
Crowther 2002) and this applies as much to their
social and environmental performance as it does
to their nancial performance. This is completely
in accordance with accepted practice, and in the
nancial arena it is only when these norms are
transgressed that accusations of creative accounting can be heard. The situation is much less clear
as far as social and environmental performance
are concerned, as there are virtually no norms that
Respectively, Professor in the Accounting and Finance Department
of the University of Murcia, Spain, but currently on secondment as
Directora General de Econom a y Planicacion of the Murcia
Regional Government; and Professor of Corporate Social Responsibility at De Monfort University, Leicester, UK.
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14
Theoretical frameworks
There are three main streams of theoretical
framework on which this paper is based. The rst
one stems from the previous paper we have
referred to.3 Our argument there was that Agency
Theory suggests that the management of an
organisation is undertaken on behalf of the
owners of that organisation, in other words the
shareholders. Consequently, the management of
value created by the organisation is only pertinent
insofar as that value accrues to the shareholders
of the rm. Implicit within this view of the
management of the rm, as espoused by Rappaport (1986) and Stewart (1991) among many
others, is that society at large, and consequently
all other stakeholders in the organisation, will also
benet as a result of managing the performance of
r 2008 The Authors
Journal compilation r 2008 Blackwell Publishing Ltd.
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Methodology
Lexical analysis
In order to try to analyse the extent of Shells
disclosure we have to use some kind of statistical
methodology which allows us to compare such
disclosure over a period of time, and to obtain the
main characteristics of a corpus from year to year.
The tool that complies with all these requirements
is the Lexico software, and specically the Lexico3
program (http://www.cavi.univparis3.fr). The Lexico series is unique in that it allows the user to
maintain control over the entire lexicometric
process, from initial segmentation to the publication of nal results. The units that are then counted
automatically originate entirely from the list of
delimiters provided by the user, with no need for
outside dictionary resources. Beyond the identication of graphical forms, the software allows for
the study of the distribution of more complex units
composed of form sequences: repeated segments,
pairs of forms in relation of co-occurrence, among
others, which are generally less ambiguous in terms
of content than the graphical forms that make
them up. This methodology seems to be an
innovative and effective approach to the analysis
of Corporate Social Disclosure, given the uncodied nature of the latter, because it allows us to
analyse the disclosure from a statistical point of
view, mixing statistical and lexical analysis (Muller
1977). Nowadays, the important development of
the computer has made textual statistical analysis
one of the most important research elds of
modern statistics (Lebart et al. 2000).
Analysed disclosure: the sample
The rst step necessary to use Lexico3 is to
have a text; in our case, the detailed study of
the disclosure should show if there was any
important change during the period of hidden
reserves and share rewards to managers, or even,
if the disclosure follows the same trend without
giving any evidence of anything. Thus we have
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Data findings
Firstly, Lexico3 shows the principal characteristics of the analysed text, in this case disclosure
r 2008 The Authors
Journal compilation r 2008 Blackwell Publishing Ltd.
1998
1999
2000
2001
2002
2003
Corpus
4057
4105
4596
4572
5387
5632
28,349
......................................................................................................................................
17
1998
12
3
2
4
4
12
4
4
6
13
8
7
1999
3
3
12
11
3
3
4
4
3
4
13
8
9
2000
3
3
13
13
2
3
3
3
3
12
4
6
16
11
15
2001
13
13
2
5
2
6
15
11
15
2002
15
12
5
120
14
14
14
13
15
16
14
18
119
111
2003
13
14
5
114
14
13
15
14
15
3
16
13
110
127
115
......................................................................................................................................
......................................................................................................................................
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Being transparent
Transparency, as a principle, means that the
external impact of the actions of the organisation
can be ascertained from that organisations
reporting (Crowther & Jatana 2005) and pertinent
facts are not disguised within that reporting. Thus
all the effects of the actions of the organisation,
including external impacts, should be apparent to
all stakeholders from using the information
provided by the organisations reporting mechanisms. Transparency is of particular importance to
external stakeholders, as these users generally lack
the background details and knowledge available
to internal users of such information (Tapscott &
Ticoll 2003). Transparency therefore can be seen
to be a part of the process of recognition of
responsibility on the part of the organisation for
the external effects of its actions and equally part
of the process of transferring power to external
stakeholders. Often, however, there is strong
resistance by corporate managers, often argued
on the grounds that more transparency would
......................................................................................................................................
Table 4: Number of times of use of the repeated segments in the analysed disclosure
Repeated segment (no. times used)
Additional information
Estimated reserves
Proved reserves
Reserves restatement
Option prices
1998
0
1
6
0
5
1999
0
1
13
0
3
2000
4
2
10
0
6
2001
5
3
10
0
3
2002
12
4
90
65
3
2003
11
4
115
85
4
......................................................................................................................................
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Conclusions
It is apparent for Shell, in line with general
experience, that the actual trend is to increase the
extent of disclosure, but it is questionable whether
it is for improving the information given to
stakeholders or to hide the important questions
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Notes
1. Although philosophers such as Robert Owen were
expounding those views more than a century earlier.
2. The benets of incorporating stakeholders into a
model of performance measurement and accountability have, however, been extensively criticised.
See, for example, Freedman & Reed (1983), Sternberg (1997, 1998) and Hutton (1997) for details of
this ongoing discourse.
3. This paper is entitled No principals, no principles
and nothing in reserve: Shell and the failure of
Agency Theory and is currently under review by an
international refereed journal.
4. As we have previously explained, the concept of
disclosure is non-homogeneous and includes all the
information primarily issued outside the nancial
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