Mary Douglas, risk and accounting failures.

Linsley, Philip and Shrives, Philip (2009) Mary Douglas, risk and accounting failures. Critical Perspectives on Accounting, 20 (4). pp. 492-508. ISSN 1045-2354

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Official URL: http://dx.doi.org/10.1016/j.cpa.2008.05.004

Abstract

Sociology and anthropology are especially valuable in providing a critical understanding of the risk-related implications of modernity. There has, however, been relatively little discussion of the work of Mary Douglas within accounting although her pioneering writings in the area of risk have been highly influential. This paper uses Douglas' cultural theory of risk to provide an alternative perspective on the demise of Enron and Andersen. The failure at Enron is interpreted through the grid-group model and analysed as a series of events that threaten to destabilize established cultures. Accounting is thus construed as an activity that exists on the margins of boundaries. There are two important conclusions drawn from the analysis. First, as the worldviews of both the individualist and hierarchical cultures became threatened by the ensuing crisis they collaborated to ensure their perpetuation. This also averted individuals from becoming susceptible to recruitment by subversive egalitarian groups. Second, the individualistic culture of Andersen shaped practices within the firm weakening its ability to act as a gatekeeper and therefore public accounting firms need to modify their cultures if they are to police the margins effectively

Item Type: Article
Uncontrolled Keywords: Mary Douglas, Anthony Giddens, Ulrich Beck, risk, cultural theory, grid-group, trust, accounting failure
Subjects: N400 Accounting
Department: Faculties > Business and Law > Newcastle Business School > Accounting and Finance
Depositing User: EPrint Services
Date Deposited: 09 Jul 2009 14:00
Last Modified: 08 May 2017 14:25
URI: http://nrl.northumbria.ac.uk/id/eprint/2449

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