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The discursive legitimation of profit in public-private service delivery

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  • Peda, Peeter
  • Vinnari, Eija

Abstract

Public-private partnerships are a topic of continuing interest for accounting researchers. However, as yet there are only a few studies focusing on the post-implementation phase of PPPs. In particular, even though scholars have criticized PPPs for inflating the profits of private partners at the expense of the public sector and citizens, they have rarely scrutinized the public debates whereby the legitimacy of PPP organizations’ profits are societally contested and debated. The purpose of this article is to shed light on the processes of profit (de)legitimation by examining the construction of senses of (il)legitimacy in public-private service delivery. These processes are examined in the case of Tallinn Water, an Estonian public-private water company. Our findings suggest that the main themes debated revolved around the following questions: What is a normal profit for a public-private monopoly? Who or what is the ultimate authority in such matters? What is morally appropriate behaviour for such a company? Our findings also indicate that even relatively affordable prices and high performance levels do not suffice to create legitimacy for an organization that tries to make excessive gains from the provision of something that is generally regarded as a human right.

Suggested Citation

  • Peda, Peeter & Vinnari, Eija, 2020. "The discursive legitimation of profit in public-private service delivery," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:crpeac:v:69:y:2020:i:c:s1045235418301308
    DOI: 10.1016/j.cpa.2019.06.002
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