Financial reporting practice has been seen as one that concerns technical and economic aspects. However, it is argued that financial reporting practice is a socially constructed reality. This book provides evidence of such claim based on an ethnographic case study conducted in an Indonesian insurance company. This study reveals that the company is committed to quality financial reporting because such reporting can be used to gain legitimacy and to maintain social harmony. The way the actors in the company construct such practice is influenced by its organisational culture, which reflects Javanese culture. In addition, the exercise of power and leadership in the company determines the construction of such practice. The Javanese philosophy of power and leadership has shaped such exercise of power and leadership. Leaders of the company have been able to show themselves as exemplary models for their subordinates (ing ngarso sung tulodo), as individuals who are able to empower subordinates (ing madyo mangun karso), and have a sense of responsibility to their subordinates (tut wuri handayani). Thus, such practice reflects the Javanese ideas on an ethical social relationship.
The Dynamics of Financial Reporting Practice in an Indonesian Company
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Financial reporting practice has been seen as one that concerns technical and economic aspects. However, it is argued that financial reporting practice is a socially constructed reality. This book provides evidence of such claim based on an ethnographic case study conducted in an Indonesian insurance company. This study reveals that the company is committed to quality financial reporting because such reporting can be used to gain legitimacy and to maintain social harmony. The way the actors in the company construct such practice is influenced by its organisational culture, which reflects Javanese culture. In addition, the exercise of power and leadership in the company determines the construction of such practice. The Javanese philosophy of power and leadership has shaped such exercise of power and leadership. Leaders of the company have been able to show themselves as exemplary models for their subordinates (ing ngarso sung tulodo), as individuals who are able to empower subordinates (ing madyo mangun karso), and have a sense of responsibility to their subordinates (tut wuri handayani). Thus, such practice reflects the Javanese ideas on an ethical social relationship.
In modern countries, a company is commonly categorized as either public or privately-held, depending on whether securities are publicly traded on the open market, into a government-owned company or...
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