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The interplay between home and host logics of accountability in multinational corporations (MNCs): the case of the Fundão dam disaster

Safari, Maryam and Bicudo de Castro, Vincent and Steccolini, Ileana (2020) 'The interplay between home and host logics of accountability in multinational corporations (MNCs): the case of the Fundão dam disaster.' Accounting Auditing and Accountability Journal, 33 (8). 1761 - 1789. ISSN 0951-3574

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Abstract

Purpose: The major purpose of this paper is to answer the overarching questions of how multinational corporations (MNCs) address the multiple institutional logics of accountability and pressures of the field in which they operate and how the dominant logic changes and shifts in response to such pressures pre- and post-disaster situation. Design/methodology/approach: In-depth interpretive textual analyses of multiple longitudinal data sets are conducted to study the case of the Fundão dam disaster. The data sources include historical documents, academic articles and public institutional press releases from 2000 to 2016, covering the environment leading to the case study incident and its aftermath. Findings: The findings reveal how MNCs' plurality of and, at times, conflicting institutional logics shape the organizational behaviors, actions and nonactions of actors pre-, peri- and post-disaster. More specifically, the predominance bureaucracy embedded in the state-corporatist logic of the host country before a disaster allows the strategic subunit of an MNC to continue operating while causing various forms of environmental damage until a globally visible disaster triggers a reversal in the dominant logic toward the embrace of wider, global, emergent social and environmental accountability. Originality/value: This paper contributes to discussions regarding the need to explore in depth of how MNCs respond to multiple institutional pressures in practice. This study extends the literature concerning disaster accountability, state-corporatism and logic-shifting by exploring how MNCs respond to the plurality of institutional logics and pressures over time and showing how, in some cases, logics not only reinforce but also contrast with each other and how a globally exposed disaster may trigger a shift in the dominant logic governing MNCs' responses.

Item Type: Article
Uncontrolled Keywords: Accountability, Institutional logics, Multinational corporations (MNCs), State-corporatism, Multiple embeddedness
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Accounting Centre
Depositing User: Elements
Date Deposited: 14 Jul 2021 10:26
Last Modified: 14 Jul 2021 11:15
URI: http://repository.essex.ac.uk/id/eprint/30403

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