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Risky business: Socializing asbestos risk and the hybridization of accounting

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  • Moerman, Lee C.
  • van der Laan, Sandra L.

Abstract

Risk management has become a major focus of corporate strategy. The management of risk often results in hybrid forms of calculative practice and to the production of “novel metrics” to make the future both calculable and manageable (Miller et al., 2008, p. 962). This paper contributes to an understanding of how accounting is implicated in the socialization of risk by examining the corporate funding of asbestos liabilities. Recent changes to the funding of asbestos claims in Australia provide a unique institutional context to utilize Douglas and Wildavsky's (1982) cultural risk model to examine the evolution of a hybrid calculative technology to manage, mediate and facilitate the socialization of risk.

Suggested Citation

  • Moerman, Lee C. & van der Laan, Sandra L., 2012. "Risky business: Socializing asbestos risk and the hybridization of accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 23(2), pages 107-116.
    • Handle: RePEc:eee:crpeac:v:23:y:2012:i:2:p:107-116
    DOI: 10.1016/j.cpa.2011.10.004
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    References listed on IDEAS

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    1. Lee Moerman & Sandra van der Laan, 2011. "Accounting for long-tail asbestos liabilities: Metaphor and meaning," Accounting Forum, Taylor & Francis Journals, vol. 35(1), pages 11-18, March.
    2. Miller, Peter & Kurunmäki, Liisa & O'Leary, Ted, 2008. "Accounting, hybrids and the management of risk," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 942-967.
    3. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-329, May.
    4. Hanlon, Gerard, 2010. "Knowledge, risk and Beck: Misconceptions of expertise and risk," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(3), pages 211-220.
    5. Toms, J.S., 2010. "The social risk–rent thesis: A reply to Harney," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(1), pages 90-95.
    6. Linsley, Philip M. & Shrives, Philip J., 2009. "Mary Douglas, risk and accounting failures," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(4), pages 492-508.
    7. Moerman, Lee & van der Laan, Sandra, 2011. "Accounting for long-tail asbestos liabilities: Metaphor and meaning," Accounting forum, Elsevier, vol. 35(1), pages 11-18.
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    1. Mulcahy, Mark & Beck, Matthias & Carr, Michelle & Hourigan, Niamh, 2019. "Novel approaches to the regulatory control of financial services providers: The importance of cultural context," The British Accounting Review, Elsevier, vol. 51(5).
    2. Lisa Baudot & Zhongwei Huang & Dana Wallace, 2021. "Stakeholder Perceptions of Risk in Mandatory Corporate Responsibility Disclosure," Journal of Business Ethics, Springer, vol. 172(1), pages 151-174, August.
    3. Linsley, Philip M. & Shrives, Philip J., 2014. "Douglasian cultural dialogues and the Financial Reporting Council complexity project," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(8), pages 757-770.
    4. Janni Grouleff Nielsen & Rainer Lueg & Dennis van Liempd, 2019. "Managing Multiple Logics: The Role of Performance Measurement Systems in Social Enterprises," Sustainability, MDPI, vol. 11(8), pages 1-23, April.
    5. Moerman, Lee C. & van der Laan, Sandra L., 2015. "Silencing the noise: Asbestos liabilities, accounting and strategic bankruptcy," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 27(C), pages 118-128.

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