Accounting Standard-Setting for an Emission Trading Scheme

The Korean Case

Bibliographic Data

ID21465443
AuthorsTae Hee Kim (0000-0002-5406-2683, Ministry of Trade, Industry and Energy), Sun Hye Lee (0000-0003-3046-7763, University of Surrey), Petros Vourvachis (Loughborough University, corresponding author)
Year2023
Volume182
Issue4
Pages1003-1024
Publication date2023-02-01
Open AccessYes
TypeARTICLE
VenueJournal of Business Ethics (JOURNAL)
Journal identifiersISSN: 0167-4544 • E-ISSN: 1573-0697
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s10551-022-05290-z
OpenAlexW4309873990
LanguageEN
Citations received3
References cited56

This study examines the participation and interaction of relevant individuals in the process of developing an accounting standard for South Korea’s emission trading scheme (ETS). Despite the enormous accounting implications of such schemes, there is a paucity of research on the development and application of ETS accounting. Ulrich Beck’s and Anthony Giddens’s risk society framework is utilised to scrutinise the process of setting accounting standards—from the agenda-setting stage all the way to the final publication of the standard. In this case study, we take an interpretive approach in analysing the rich data collected through face-to-face interviews with prominent standard-setters, accounting experts and representatives of industry and government. Participant observation and relevant documents were also considered. The findings highlight the political nature of accounting standard-setting and identify the risks and responsibilities of the key agents in the process along with the means of sub-political action taken to influence decisions. We reveal that the agents involved in standard-setting attempted to balance their anthropocentric priorities with ecocentric responsibilities and prioritised the production of a standard with minimal impact on economic, reputational, and operational risk. Having authority as a standard-setter, referring frequently to precedents and, perhaps most importantly, engaging actively with the stakeholders throughout the process seem to have contributed to a widely accepted standard, which can serve as a benchmark for future attempts to factor in ETSs

Business · Economics · Political science · Politics · Public relations · Social science · Sociology · Climate Change Policy and Economics · Computer Science · Corporate Social Responsibility Reporting · Environmental Sustainability in Business · Law · Accounting

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