Adapting the new regulation of sustainability accounting: The logics behind managerial choices and the effect on practices

Abstract: Aim: The study aims to explore which logics that drive managerial choices in the initial phase of adapting the new regulation of sustainability accounting. The study further aims to explore how the managerial choices made affect the practices of an organization. Methodology: To answer the research questions of the study, a case study has been performed at an organization active in the construction industry. The data generated has been collected through interviews, observations and document reviews. Individual interviews have been held with nine managers at three different occasions. The managers have been observed in smaller groups at two occasions. To complement the interviews and observations, external and internal documents related to the process of adaptation have been reviewed. Findings and Conclusion: Different logics have been found to drive managerial choices when adapting the new regulation of sustainability accounting. Two of the three small groups were driven by logics related to their profession in the organization. The remaining group was driven by the willingness to create and contribute to value for the organization, both internally and externally. Internally, the managers were driven by the improved communication value. Externally, the managers were driven by the creation of value to stakeholders. All three of the groups were however driven by field-level logics. Tendencies to new practices related to the managerial choices made have additionally been found, where improvements in several areas have been identified. Contribution: This study contributes with knowledge of how logics affect managerial choices when adapting the new regulation of sustainability accounting at an initial phase. This study contributes with knowledge of how the managerial choices made affect the practices in an organization, relating the choices made to the concept of isopraxism. Since research in isopraxism is limited this study further contributes with an additional perspective of how isopraxism can become evident in an organization when adapting a new idea. This study further contributes with implications of how a Swedish organization adapts the new regulation. Finally, this study give answer to the criticism raised in media of the potential positive and negative effects in practice.