Beyond Numbers and Calculations: Unearthing the Hidden Dimensions of Sustainable Accounting through Qualitative Research

In anticipation of the upcoming the 3^rd Faculty of Social Sciences and Law Postgraduate Research Conference, where leading minds will come together to discuss advancements in sustainability research, I reflect on my journey through qualitative research in sustainable accounting.

Accounting, traditionally seen as a realm of numbers and calculations, is undergoing a profound transformation. As an evolving field, sustainable accounting offers a profound depth that goes beyond traditional numbers and calculations. This transformation is driven by the growing recognition of the discipline’s depth and breadth, particularly in the context of sustainable accounting. This specialized branch of accounting, which integrates environmental, social, and governance (ESG) factors into business reporting and disclosure, is expanding the horizons of accounting research. As stakeholders increasingly seek to understand the rationale behind corporate accounting practices and their implications for sustainability, the need for a more comprehensive approach becomes evident.

The Deep Dive: Qualitative Accounting Research

Before we explore the application of qualitative research in sustainable accounting, it’s crucial to understand what it entails. Qualitative research is not about crunching numbers; instead, it seeks to unravel the “why” and “how” behind decision-making processes. As concepts such as corporate responsibility and shared value gain traction, sustainable accounting is shifting from a sole focus on financial performance to a broader interest in a company’s social and environmental impact. Methods like interviews, observations, and case studies are employed to gain insights into corporate attitudes, behaviours, and experiences.

Unearthing the Hidden: The Story Behind the Numbers

Qualitative research provides a lens to understand the context in which accounting decisions are made. It offers insights into the motivations, attitudes, and behaviours of various stakeholders, including managers, employees, investors, and regulators. Sustainable accounting goes beyond financial metrics to include non-financial aspects like environmental impact, social responsibility, and corporate governance. Qualitative research allows us to delve deeper into these aspects, offering a more comprehensive view of corporate performance.

When we elevate our perspective from the enterprise level to the societal and state level, we find that qualitative research offers a broader scope for exploring sustainable accounting. It can reveal hidden or overlooked aspects of sustainable accounting, such as the cultural, social, and political factors that influence sustainable practices.

Real-World Applications of Qualitative Research in Sustainable Accounting

To illustrate the value of qualitative research in sustainable accounting, let’s consider a case study from my PhD research. I explored a company that encourages its users to engage in everyday low-carbon behaviours. The company converts the carbon savings from these daily actions into a tree planted in a desert area. The more low-carbon behaviours a user performs, the more trees the company plants.

This case study used fieldwork to understand how the corporation implemented sustainable accounting practices. Interviews and observations revealed the drivers behind the company’s sustainability efforts. An ethnographic approach was used to explore the interplay between accounting, culture, and sustainability. This case-based qualitative research demonstrates the power of looking beyond numbers and calculations in accounting research. While financial indicators and information remain important, we can build on these figures to explore how companies achieve their goals, why they do so, and how stakeholders perceive these behaviours.

The Road Ahead: Challenges and Opportunities

In the realm of sustainable accounting, qualitative research is not just a ‘nice-to-have’ but a ‘must-have’. It provides a richer, more nuanced understanding of sustainable accounting practices, helping us navigate the complex interplay between business, society, and the environment. As we strive for a more sustainable future, the role of qualitative research in accounting will only become more significant. However, this promising path is not without its thorns. Conducting qualitative accounting research requires a strong sense of conviction on the part of the researcher and the ability to adapt to the realities encountered during fieldwork. As we continue to explore this exciting frontier, we are not just accounting for the present, but also shaping the future of sustainable business practices. For those looking to delve deeper into sustainability in accounting research and other novel projects, I invite you to join us at our upcoming FSSL PGR conference. This platform promises a wealth of knowledge and networking opportunities.

Further Information

For more information on my project, please get in touch with shang.wu@bristol.ac.uk.

Acknowledgements:

I am grateful to the organizing committee of this conference for providing an opportunity to exchange academic ideas. I also wish to express my gratitude to the researchers in the School of Accounting and Finance for their invaluable feedback during my research. Special thanks to Antonia Voigt and Deepti R Bhat for their constructive feedback on this blog.