Utilising Accounting and Accountants in the Management of Water Efficiency Matthew Egan , The University of Sydney This paper explores how five Australian organisations utilised accounting techniques and accountants as they developed an increasing focus on water efficiency during a period of drought. In those cases where top management were responsive to developing community logics that argued for the importance of efforts to maximise water efficiency, non-accountants found space to experiment with a diversity of decision-useful accounting initiatives. While initially bypassed, accountants ultimately became important for their ability to link evolving initiatives to core organisational concerns. Alternatively, in those organisations where senior responsiveness to evolving community concerns about water efficiency was limited, accountants dominated from the outset, presiding over a limited range of responses that offered an appearance, but little substance, of change. L ess than 2.5% of global water is fresh, and much of that is inaccessible within glaciers and ice caps (Shiklomanov 1993). ‘Climate change’ science adds that rainfall levels are likely to become increasingly less dependable (IPCC 2007). As populations continue to grow, it is therefore important to learn how we can become more water efficient. Australia provides a rich context within which to explore how water consumers can improve water efficiencies. A protracted period of drought occurred across much of that continent from the 1990s into the mid-2000s (BoM 2007). Faced with declining dam levels, water authorities experimented with a range of demand management programs, including regulation requiring industry to develop ‘water savings plans’, and funding to support investment in water efficient infrastructure. Interestingly, water prices were not significantly increased at this time (Egan 2009). Demand management strategies such as these can drive organisations to develop resource efficiency practices (Buhr 1998; Bansal and Roth 2000; Prakash 2000). Organisations might describe such practices as an element of broader initiatives focused on ‘environmental’ or ‘sustainability’ management change1 (Smith and Lambell 1997; Schaltegger and Burritt 2000). A range of studies call for research exploring both the nature and drivers of corporate claims to environmental or sustainability management change (Broadbent and Guthrie 1992; Bouma and van der Veen 2002; Adams and Larrinaga-Gonzalez 2007; Bebbington et al. 2007). Practices of this nature may contribute little to profit, and so empirical puzzles worth exploring include: do claims to such practices reflect genuine 356 Australian Accounting Review No. 86 Vol. 28 Issue 3 2018 organisational change, and if so, how are those changes able to be justified? Considering, for example, the question of water efficiency, as the cost of this resource is inexpensive (Egan 2009), how could an organisation reconcile initiatives designed to maximise efficiencies with core concerns about cost effectiveness and profitability? Of more specific interest, this study engages with debates that seek to understand the impact that both accounting and accountants might have, where drawn on to support novel initiatives of this nature. On the one hand, Parker (2000) and Bennett and James (1998) suggest that accounting and accountants are critical to the success of any such novel endeavours. Alternatively, others suggest that both accounting and accountants might limit the focus of any related initiatives, or seek realignment to core profit and cost efficiency concerns (Adams 2002; Young 2006; Qian and Burritt 2008). The value of further research that explores how accounting and accountants impact on novel environmental or sustainability practices (such as water efficiency) is therefore widely noted (Gray et al. 1997; Adams and LarrinagaGonzalez 2007; Bebbington 2007; Ferreira et al. 2010; Albelda 2011; Schaltegger et al. 2015). ‘We need more indepth studies of how the [accounting] profession and its constituent professional bodies have mobilised around Correspondence: Matthew Egan, Senior Lecturer, Discipline of Accounting, The University of Sydney, Room 316, Codrington Building, Darlington, NSW, 2006, Australia. Tel: +61 2 9036 9060; email: matthew.egan@sydney.edu.au Accepted for publication 4 May 2017. doi: 10.1111/auar.12191 M. Egan Utilising Accounting and Accountants in the Management of Water Efficiency accounting for social sustainability . . . We have limited robust evidence about how these bodies have constructed and mobilise their engagement’ (O’Dwyer and Unerman 2016: 39). This paper responds by considering how five food and beverage producing organisations located in Sydney, Australia in the late 2000s drew on accounting techniques and accountants, as they responded to drought conditions. Specifically, we explore the role for accounting techniques, the roles assumed by accountants, the factors motivating each organisation to seek that input from accounting and accountants, and the impact that accounting and accountants had in each case. Responding to calls for the use of novel theoretical frameworks in sustainability research (Unerman and Chapman 2014), and to those by Greenwood et al. (2011) for studies that explore how institutional forces shape organisational complexity, we draw on concepts from ‘institutional logics’ to help articulate our insights. Of relevance to practice, our study suggests that while accountants may be initially reluctant to engage, non-accountants including engineers, environment managers and production managers, are capable of developing creative, decision-useful water accounting initiatives. We argue that effective reconciliation of the multiple logics impacting on water usage in these organisations required the development of a broad complement of physical, monetary and qualitative accounting initiatives. Where state and market logics dominated, water accounting initiatives were limited, and focused on little more than monitoring usage. Where top management also sought active engagement with evolving community logics, non-accountants were given space to develop a range of novel accounting techniques, enabling informed efficiency investigations. In all five cases, accountants sought to limit water accounting to narrow technical conceptions focused on cost efficiency. Accountants were therefore excluded in those organisations where top management support for maximising water efficiency was clear. However, in those cases where support for water efficiency was limited, accountants were able to preside over a limited accounting toolkit, offering little substance for effective efficiency decision making. The remainder of this paper is structured as follows. The following section reviews existing understandings of how accounting might either contribute to, or narrow, an organisation’s focus on environmental or sustainability management initiatives. That is followed by a review of literature exploring the impact of accountants on such developments. An institutional logics framework is developed thereafter, leading to the formation of four research questions for this study. Further sections provide methodology, insights from the cases, and conclusions. C 2017 CPA Australia How Can Accounting Contribute to Water Efficiency Goals? The impact that accounting technologies might have, where drawn on to support a developing focus on environmental or sustainability initiatives (such as water efficiency), is the subject of debate. On the one hand, accounting might provide ‘categories for discourse’ to assist with ‘ordering and interpreting’, and with imposing ‘coherence on chaotic organisational processes’ (Boland and Pondy 1983: 224). Alternatively, management’s goals in drawing on the legitimacy of accounting technologies might be to silence those that threaten power (Dillard and Roslender 2011). These alternative perspectives are explored here. Optimistic studies in this field argue that accounting tools are critical to the development of novel management initiatives (such as practices seeking to maximise water efficiency), in order to ‘render transparent the formerly invisible’ (Parker 2000: 48). Accounting technologies might improve decision making by revealing the ‘economic and environmental irrationality of most organisation’s waste management practices’ (Duncan and Thomson 1998: 5). New or adapted accounting technologies might include investment proposal frameworks, budgets, performance measurement and risk management systems (Gond et al. 2012; Arjalies and Mundy 2013). Thomson and Georgakopoulos (2010) suggest that while most of these techniques are not indivudually complex, a welldeveloped and systematic information system can incentivise more environmentally sensitive organisational behaviour. Hopwood et al. (2010: 18) suggest that ‘organisations that are really serious about addressing issues of sustainability’ will design accounting tools that complement existing financial accounting systems, and ‘embed sustainability considerations within strategic decision making’. By highlighting resource usage in both physical and monetary units, the organisation might shift from compliance to performance improvement, and might come to understand both its impact on the environment, and the impact of the environment on the organisation’s economic health (Schaltegger and Burritt 2000; Burritt et al. 2002; Adams and Frost 2008; Jasch and Savage 2008; Lee 2011; Fries et al. 2010). Alternatively, management’s objective in drawing on accounting may be to rein in errant organisational dialogue, to narrowly focus on the ‘business-case’ for action (Fries et al. 2010; Bebbington and Thomson 2013; Contrafatto and Burns 2013; Thomson and Georgakopoulos 2010, 2014). Any suggestion of accounting change may simply reflect ‘re-labelling’, while ‘business as usual’ may persist as the overarching goal (Milne 1996; Albelda 2011). Gray et al. (1995: 233) argue that while accounting may increase visibility, the Australian Accounting Review 357 Utilising Accounting and Accountants in the Management of Water Efficiency trade-off is often a ‘constraining of environment to a safe and controllable issue’. In a case study, LarrinagaGonzalez et al. (2001: 234) argue that accounting was implicit in ‘limiting and controlling the influence that the environment would have on the company’. Others suggest that novel accounting developments might have limited impact unless line management is held accountable for achieving related targets (Chang and Deegan 2008). Considering water as a specific concern, Unerman and Chapman (2014) argue that impacts will differ depending on the environment from which water is drawn, and so efforts to commensurate and compare water usage across locations may, therefore, be meaningless. Alternatively, Bebbington (2014) argues that all issues of sustainability are complex and, if top management support is clear, the value of seeking to reveal the formerly hidden will outweigh any concerns about technical inaccuracies. Others add that accounting challenges might be overcome by engaging with a broad range of stakeholders (Milne 1996). Accounting may demonstrate ‘considerable ceremonial change’ with little impact on ‘productive effectiveness’ (Burns and Scapens 2000: 22). Lohmann (2009: 501) suggests that accounting is ‘simplifying and boundary drawing’, and yet ‘ultimately becomes an entity as “real” in policy deliberations as any other’. Several key arguments can be condensed from these debates. On the one hand, it would seem that accounting technologies can assist with a range of core organisational concerns, including improving resource efficiency. Top management support would seem critical; ‘without top management interest and involvement, goalsetting at lower levels will very likely be attempted only a few times and eventually abandoned’ (Rodgers et al. 1993: 152). This literature also confirms that related research continues to be ‘scarce and is focused more on describing the current state of implementation than on analyzing or critically evaluating the effectiveness of new [accounting] tools’ (Bouma and van der Veen 2002: 279). We respond here by exploring how accounting tools were drawn on in support of a developing focus on water efficiency within five case study organisations located in Sydney, Australia in the late 2000s. How Can Accountants Contribute to Water Efficiency Goals? Here we also seek to understand the impact that accountants2 might have when drawn on to support water accounting initiatives. As with accounting, the impact of accountants is also the subject of debate. For its part, the accounting profession has been calling on members to become more involved in novel organisational strategies and practices for some time (ASSC 1975; Schaltegger and Burritt 2000; KPMG 2008). Tingey-Holyoak and 358 Australian Accounting Review M. Egan Burritt (2012: 93) argue that accountants are critical for their ‘transdisciplinary perspective on problem-solving’. Accountants might enhance the understandability and decision-making utility of novel accounting initiatives (Wilmshurst and Frost 2001). Accountants commonly have direct access to the board (Bennett and James 1998) and, where excluded, the organisation may fail to realise the full information potential of related initiatives (Parker 2000: 53). Alternatively, accountants may be unwilling or unable to participate in novel organisational initiatives. While accountants may be deeply involved in managing performance management systems, they may play little part in environmental accounting systems, even where the two are closely integrated (Länsiluoto and Järvenpää 2010). In a case study, Monteiro and AibarGuzman (2010: 425) found that ‘the accounting department assumed an inactive behaviour . . . refusing to include environmental issues in accounting practices’. Schaltegger and Zvezdov (2015: 348) suggest that the ‘knowledge expert activity of deciding what sustainability issue should be captured is dominated by sustainability managers’. Accountants may be intellectually and emotionally ill-equipped to contribute to initiatives that do not clearly align with cost efficiency or profit maximisation (Langfield-Smith 2007), or may fear that involvement will threaten their credibility (Cooper 1992; Gray et al. 1996; Wycherley 1997; Adams 2002). While some might be enthusiastic about environmental initiatives, ‘situational or internal constraints [may] prevent accountants translating attitudes into behaviour’ (Bebbington et al. 1994: 118). Accountants may also be unable to engage due to ‘cost constraints, lack of political will from governments, lack of conviction about business’s role in the environment’ (Gray and Bebbington 2001: 40). Hopper (1980: 410) observes a ‘common assertion that accountants resist a service role [providing decision useful reporting to production managers] due to their conservative and bureaucratic orientations’. Byrne and Pierce (2007) counter, however, that such resistance may more correctly reflect time constraints due to heavy reporting responsibilities to top management. Support from top management is therefore critical. In other cases, accountants may seek engagement, however their objective may be to disrupt or dismantle related practices (Armstrong 1985; Larrinaga-Gonzalez and Bebbington 2001). Accountants might seek to reorient the focus of accounting to quantitative, monetary measurement, to the detriment of initiatives focused on physical process flows (Burritt et al. 2002; Schaltegger et al. 2015). In summary, the arguments presented here suggest that while the accounting profession has promoted the importance of participation in novel organisational initiatives (such as water efficiency) for some time, C 2017 CPA Australia M. Egan Utilising Accounting and Accountants in the Management of Water Efficiency members may continue to remain unwilling or unable to respond. We contribute by exploring the roles, drivers and impacts of accountants, in a developing focus on water accounting change within five case study organisations. An Institutional Logics Framework A range of studies draw on a ‘neo-institutional’ framework to aid exploration of the social and political antecedents of environmental or sustainability management change (Greenwood and Hinings 1996; Bouma and van der Veen 2002; Chang and Deegan 2008; Qian and Burritt 2008). A central expectation of neoinstitutional theory is that ‘professions, sciences, legitimate interests . . . construct and constrain’ behaviour (Jepperson and Meyer 1991: 206). DiMaggio and Powell (1991: 15) add that the ‘taken-for-granted scripts, rules and classifications’ of institutions describe the way in which things are expected to be done (Scott 1992; Tolbert and Zucker 1996). A shortcoming of these neo-institutional arguments is that they tend to emphasise homogeneity and ‘mindless cognition, [while] ignoring mindful action and agency’ (Thornton et al. 2012: 31). Suddaby (2010: 16) adds that related empirical studies often overlook the impact of culture including ‘meanings, systems, symbols, myths and the processes by which organisations interpret their institutional environments’. Thornton et al. (2012) therefore develop a distinct ‘institutional logics’ framework that seeks to explicitly factor in arguments about how culture and values not only constrain, but also guide choice (Covaleski and Dirsmith 1988; Thornton and Ocasio 1999, 2008). We will draw on these concepts to enable articulation of how accounting and accountants were uniquely drawn on in the management of water efficiency change across our five case study organisations. Institutional logics serve as ‘underlying [organisational] lynchpins’ (Glynn and Raffaelli 2013: 178), which condition actors’ choices, motivations and sense of identity, and so are able to explain diverse responses across organisations (Thornton et al. 2012). Institutional logics ‘consist of linked material (practices) and symbolic (meanings) elements that work together to constitute a particular type of institutional order’ (Ezzamel et al. 2012: 284). We can conceive of seven distinct institutional orders forming the ‘key cornerstone institutions of society’: family, community, religion, state, market, profession and corporation (Thornton et al. 2012: 53). Each institutional order is composed of distinctive norms, symbols and practices. While market norms include self-interest and reward through profit and efficiency, ‘community’ norms suggest the importance of group concerns, trust, common values and loyalties. ‘State’ C 2017 CPA Australia norms in the Australian context suggest bureaucratic democracy (Thornton et al. 2012). While actors do not have ‘an unbridled ability to freely manipulate institutions’ (Thornton et al. 2012: 9), a sense of ‘contradictory’ logics (which are likely to be evident in fields that bridge others) (Greenwood and Suddaby 2006) can be exploited by individuals as they seek to solve organisational challenges (Thornton et al. 2012). A sense of contradictory logics lowers an actor’s sense of embeddedness in any one field and so provides the conditions necessary to become ‘institutional entrepreneurs’ (or drivers of institutional change). Institutional entrepreneurs might choose from ‘a menu of institutional models and components’ and are expected to continuously integrate elements of new logics without fully discarding old ones (Borum and Westenholtz 1995: 115). A range of organisational strategies and practices may emerge where actors are subject to a diversity of conflicting logics. Thornton et al. (2012: 58) suggest that ‘one way individuals and organisations deal with the pressures of conflicting logics of different institutional orders is to loosely couple or decouple who they are, from how they act’. Oliver (1991) suggests that organisational responses in the face of ‘multiple competing logics’ are likely to range from acquiescence (a high level of responsiveness), to compromise, avoidance, defiance or manipulation. Pache and Santos (2010) suggest that organisations are more likely to compromise and adapt, where agents within the organisation who are aligned to those logics have power, and where conflicting demands are not expected to require significant organisational adaption. Reay and Hinings (2009) add that competing logics can coexist where a culture of collaboration is nurtured. Waldorff et al. (2013) develop a framework for understanding how new logics can start to have some impact in the face of dominant organisational logics. Agents passionate about, or aligned to emerging logics emphasising the importance of water efficiency, may also hold positions of some power. This may enable them to resolve any organisational sense that new logics conflict with existing core logics. Another possibility is that organisations might ‘segment’ any agents assigned to address water efficiency, away from centres dominated by logics that are seen to compete. In this case, action might be possible without the need for resolution of conflict. A further alternative is that agents responding to novel logics might develop ‘facilitative relationships’ to core logics. For example, agents championing water efficiency change might be able to convince others that a pervasive water efficiency change might improve competitive advantage. Pache and Santos (2013: 28) argue that ‘multicultural’ individuals (individuals able to identify with multiple logics) are best able to contribute to institutional adaptation. Australian Accounting Review 359 Utilising Accounting and Accountants in the Management of Water Efficiency The opportunities identified in the literature reviews undertaken across sections 2, 3 and 4, suggest value in the following four research questions for this study. 1. What water accounting techniques were being developed across five large water consuming organisations operating in Sydney, Australia, in the late 2000s? 2. What roles were assumed by accountants? 3. What logics explain each organisation’s unique approach to utilising accounting and accountants? 4. What impact did accounting and accountants have on the embedding of water efficiency change in each case? Methodology A qualitative case study approach is appropriate where seeking rich insight into organisational complexity (Creswell 1998). The Sydney basin (hereafter called the ‘basin’) was selected as an ideal location within which to target a number of organisations. The basin has a small water catchment (approximately 16 000 square kilometres) and yet includes one of Australia’s largest industrial and urban concentrations. The basin is hydrologically isolated and was impacted by a protracted period of drought at the time of this study. Within the basin, we targeted organisations that were both large water consumers and financially large. Our goal here was to access organisations that were both vulnerable to community water pressures and able to invest in efficiency solutions. In 2005 the NSW Water Savings Order 2005 (‘the Order’) was implemented, which required all Sydney-based organisations that consumed more than 50 megalitres of water in the preceding year to develop water savings plans. An appendix to that Order named each of those organisations, as ‘large water consumers’. We matched that list against the 2006 Business Review Weekly listing of organisations with total annual revenue exceeding AUD1billion (BRW 2006). We identified 38 organisations that met both of these criteria. The environment/sustainability managers in five food and beverage producing organisations from that list of 38 were contacted, and all agreed to provide access. The inclusion of more than one case study organisation was considered desirable, in order to enable some contrasting of alternative approaches. The food and beverage sector was considered an ideal target as it uses water for a variety of purposes. Industry groups reflect ‘recognised areas of institutional life’ (DiMaggio and Powell 1983: 148) and by focusing within one, the researcher can ‘eliminate the confounding influences of different regulators and publics’ (Deephouse 1996: 1026). We explained our objectives in an initial meeting and each suggested a range of staff for detailed interviewing. It is acknowledged that in working through the environment/sustainability 360 Australian Accounting Review M. Egan manager, some staff having an interest in water efficiency may have been overlooked. Interviewing became the primary source of data. To ensure anonymity, interviewee and company names are not revealed. Instead, generic position descriptions are utilised and the five case organisations are given the pseudonyms Alpha, Beta, Gamma, Delta and Epsilon. A semi-structured interview approach was adopted so as ‘to present a detailed view of the topic’ (Creswell 1998: 17). All staff suggested by our environment/sustainability manager contacts agreed to be interviewed. Interviewees included a number of ‘accountants’, along with others involved in the management of water-related activities. Ultimately, we interviewed 21 during 2008, with nine follow up interviews conducted through 2009 and 2010 (Table 1). Interviews were transcribed and coded to key themes using NVivo 9. Of the comments coded to those themes, many were ultimately edited out because similar views were better expressed by others. Subjectivity of coding and analysis are challenges for qualitative research and so are acknowledged as limitations of this study. Nonetheless, a ‘plausible’ and ‘trustworthy’ account (Ahrens and Chapman 2006: 834) was sought by contrasting and comparing key arguments. Background – The Nature and Drivers of Water Efficiency Change While not the core focus of this paper, here we provide some background on the water efficiency practices and drivers of those practices, within the five case organisations. Despite drought conditions in the Sydney basin through the early 2000s, water authorities implemented limited price increases (Egan 2009). Furthermore, the requirements of the Order were limited, and focused largely on mandating the development of a ‘savings plan’. Cost and regulation, therefore, did little to ‘construct and constrain’ (Jepperson and Meyer 1991: 206) inefficient water usage. However, as drought conditions intensified, an awareness developed across the field that significant water usage was being closely scrutinised by both authorities and community groups. While water cost and regulation did little to drive water efficiency change, this somewhat intangible sense of scrutiny and criticism became a more powerful driver for change within at least Alpha and Beta (Egan 2014). Responses across the five case organisations can therefore be understood to have been influenced by a combination of market, state and community logics (Thornton et al. 2012). The five case organisations developed a diversity of water efficiency practices in response to these drivers. Prior to the drought, the taken-for-granted or ‘institutionalised’ (DiMaggio and Powell 1991) approach to water efficiency had largely been ‘just pouring it down the C 2017 CPA Australia M. Egan Utilising Accounting and Accountants in the Management of Water Efficiency Table 1 Semi-structured interviews 1 2/3 4 5 6 7 8 9 10 11 12 13 14/15 16 17/18 19/20 21 22 23 24 25/26 27/28 29 30 Date Generic position description 17/09/2008 30/10/2008 01/12/2008 01/12/2008 14/05/2009 9/11/2010 17/06/2008 25/06/2008 23/07/2008 03/10/2008 03/10/2008 03/10/2008 03/12/2008 29/04/2009 06/05/2009 25/11/2010 03/10/2008 30/04/2008 30/04/2008 30/04/2008 01/08/2008 26/06/2008 08/05/2009 25/11/2010 Head office environment manager Plant manager and effluent manager Operations manager Accountant Head office environment manager Head office environment manager Corporate affairs manager Head office environment manager Engineer Environment assistant Plant environment manager Plant manager Accountants (x 2) Director Environment & corporate affairs manager Environment & corporate affairs manager Director Management accountant Plant environment manager/engineer Environment manager Plant manager and effluent manager Sustainability and environment manager Environment manager Environment manager drain’ (as argued by Epsilon’s environment manager). However, by 2010, market and state logics had driven all five organisations to make some effort to identify and monitor sources of usage, and remedy at least, any significant inefficiencies or leaks. Most initiatives were low cost and included new reporting processes, staff awareness campaigns, some re-engineering of production processes, and minor hardware investments such as efficient hose nozzles. The sense of community scrutiny and criticism felt within Alpha, Beta and Gamma, also motivated those organisations to invest in some larger water treatment and recycling infrastructure (Egan 2015). Consistent with Ezzamel et al. (2007), these three identified logics (market, state and community) impacted differentially across the five cases, and so variable strategies were evident. Responding to the Four Research Questions Four subsections are presented here, addressing each of the study’s four research questions. The theoretical arguments developed in sections 2 to 4 are drawn on as appropriate, to enable both a describing and an evaluation of the effectiveness of accounting and accountants to water efficiency change (Bouma and van der Veen 2002). RQ1. What water accounting techniques were being developed? C 2017 CPA Australia Organisation Length (mins) Alpha Alpha Alpha Alpha Alpha Alpha Beta Beta Beta Beta Beta Beta Beta Beta Beta Beta Gamma Gamma Gamma Delta Delta Epsilon Epsilon Epsilon 89 66 35 52 51 40 75 102 83 26 46 43 40 15 36 32 70 90 46 10 62 69 24 10 Agents cognisant of, and enthusiastic to respond to, developing community logics about the importance of water efficiency were evident within each of the five organisations. Those agents differentially mobilised a range of accounting techniques, including water costing, water reporting, true cost and reputation cost, in their efforts to champion some water efficiency change. Water costing Industrial water prices were not significantly increased in Sydney through the 1990s and 2000s (Egan 2009). Nonetheless, the market logics implicit in water cost had some limited ability to drive water efficiency change in Alpha. The accountant in Alpha explained that while water was ‘still too cheap to be a driver on its own . . . highlighting that it is a cost and that it is increasing does get some traction’. By referencing ‘multiple logics [this accountant was able to] open up space giving more discretion to social actors’ (Waldorff et al. 2013: 104). In general however, the insignificant cost of water, as presented through financial accounting records, did little to compel a focus on water efficiency. Typical of many comments, Gamma’s environment manager argued, ‘I don’t think there is a lot of cost savings’ through being more efficient. He added; a business ‘has got to make money to survive’. Despite the limited impact of these market focused logics (Thornton et al. 2012), developing community logics, focused on the importance of preserving shared Australian Accounting Review 361 Utilising Accounting and Accountants in the Management of Water Efficiency water resources, were also having an increasing impact in Sydney at this time. Those norms encouraged both householders and organisational agents to seek opportunities wherever they could, to maximise water efficiencies. Agents within the five case organisations, who were keen to respond to those other developing logics, had greater success in driving water efficiency change, where they also referenced other more creative accounting solutions. Those other accounting solutions are explained in the following subsections. Water reporting The Order mandated all five organisations to map water usage patterns, develop a list of savings measures, and develop a plan for implementing those measures. This state logic (Thornton et al. 2012) was generally interpreted to require the development of at least some basic reporting of water consumption (to be measured in litres), on at least an annualised basis, dissected by key production sites. Annualised data was of no utility, however, for investigating inefficiencies and leaks. Nonetheless, agents in all five cases had championed at least some further development of water reporting, beyond those limited needs of the Order. In each case, usage data, measured in both litres and as a cost (litres consumed multiplied by unit cost), was now collected frequently (in some cases on a monthly, weekly and even daily basis), dissected in meaningful ways (by function, location or production cycle), and contrasted against production levels to determine and compare efficiencies. Alpha managed over 100 production sites across Australia and New Zealand and had recently installed a number of water sub-meters to allow deep analysis of water usage by site and process. By mid-2008 all production sites were manually collecting water usage and discharge data measured in litres, on a weekly basis. This data was then discussed in monthly teleconferences, which were attended by all plant managers and the CEO. The environment manager explained, ‘we actually show each site whether they have gains or whether they have reduced the amount of water they use. If it has increased the big question is asked: what happened? If it is reduced: how did you do it?’ Management’s goal for water reporting in Alpha therefore went beyond compliance, and was focused on maximising water efficiencies (Chang and Deegan 2008) through benchmarking and a sharing of ideas between production sites. Interviewees in Alpha explained that a key factor driving this beyond compliance approach was a sense that water consumption was being closely scrutinised by water authorities. The operations manager explained, ‘in the past, it was just a cost of business and they [authorities] provided water for you. Now, they may say “no, it’s just not available”. We would have to plan 362 Australian Accounting Review M. Egan accordingly. So it becomes part of our strategic decision making’. Perceptions of new community norms (Thornton et al. 2012), suggesting that wasteful organisations might somehow have their supplies cut or restricted, were increasingly able to compete with and modify dominant market logics focused on cost efficiency. Here, informed agents were aware of this ‘constellation’ of community, market, and state logics (Waldorff et al. 2013), and so promoted sophisticated reporting practices, capable of providing insight into where inefficient usage might be contributing to unwanted scrutiny. A significant network of water sub-meters had also been installed at key water consumption points in Beta’s Sydney production sites in recent years. Plant management were required to read those meters on a daily basis. The plant engineer explained, ‘sub-metering is where it all starts because if you don’t get the correct data collection, you can’t do anything with the information’. Daily water usage data measured in litres was then linked to production data so as to present water usage per volume of output, by site. The plant environment manager explained, ‘we have recently installed counters on every line for our production figures . . . because previously, the amount of water used in a day, well, what did it mean? . . . relating it to the production data in real time is a key objective’. Monitoring water usage as a percentage of production enabled comparison to targets and benchmarking across locations. In this manner, water reporting had evolved in Beta to meaningfully inform plant level efficiency investigations. Beta went one step further than Alpha in also incentivising the achievement of key water usage targets through bonus arrangements. Bonus mechanisms provided an additional ‘material practice’ for Beta, linking community and market focused logics (Waldorff et al. 2013). Organisational culture was important here and focused on encouraging collaboration (Reay and Hinings 2009). That culture enabled change to core production processes, which in turn facilitated these measurement initiatives. In Gamma, production level staff recorded water usage in litres from water meters on a weekly basis. That data was added to management reports that also documented production data, along with energy and gas usage. The plant manager explained that these reports had thereby become useful for informing plant level efficiency investigations. Like Beta, an important factor motivating staff to undertake those investigations was that water usage KPIs were incentivised through bonuses. The plant manager explained, ‘at a certain [management] level we all have a 20 per cent bonus based on, broken down into different sections, but all of it will have a cents per litre [component]’. By 2008, water usage data (measured in litres) was also being generated on a daily basis in Delta. However, top management’s interest was limited to compliance with the Order, and so they encouraged staff to do no more C 2017 CPA Australia M. Egan Utilising Accounting and Accountants in the Management of Water Efficiency than monitor usage to ensure it stayed within reasonable parameters. The plant manager explained water was ‘the cheapest of our ingredients [and so] that would be the least of their [top management’s] worries . . . if it [water usage] is at a good level then I guess they [top management] don’t really need to go out there and make waves’. Nonetheless, despite this limited emphasis on investigating inefficiencies, the plant manager and his team utilised that data where they could to try to improve efficiencies. ‘Every day . . . we can look at discrepancies. If too much water is being used, and it has happened a few times, we’ve got to go and investigate why’. The production manager explained, ‘it is more of a competitive thing against the other [production] sites which is the driver for it’. This example shows that while top management were fixated on market logics, plant level staff were able to drive some change, particularly where they had some power (Pache and Santos 2010) to respond to community focused norms about water conservation (Thornton et al. 2012). This sense of a multitude of logics motivated staff to draw on the organisation’s limited water reporting, as best they could, to explore for potential inefficiencies. Water reporting was the least impressive in Epsilon. Management in Epsilon began collecting annualised water usage data, measured in both litres and dollars, from 2006 to address the limited compliance requirements of the Order. This annualised water usage data was ‘simplifying and boundary drawing’ (Lohmann 2009: 501), as it was of no use to any plant level staff seeking to investigate inefficiencies. Because water costs were low, top management did little to encourage efficiency. Nonetheless, some plant level staff were motivated by community concerns about the drought to do what they could, and so drew on discretionary funding to install some submeters. Data from those meters needed to be recorded in distinct localised reporting processes (Thomson and Bebbington 2005). The head office environment manager summarised that it was a ‘case of excellence in some [plants], and complete ignorance in others’. ‘True cost’ of water Along with a well-developed focus on water reporting, non-accountants in both Alpha and Beta were beginning to creatively manipulate financial accounting information to bring greater attention to what they called the ‘true cost of water’. For both Alpha and Beta, the true cost of water factored in not only the price to purchase water from the supplier (which in this study was Sydney Water Corporation), but the additional costs required to heat, treat and dispose. The environment manager in Alpha explained that the true cost of water comprised ‘the costs to come in per kilolitre, the costs to heat it . . . the costs to chill it . . . then we pay to treat it C 2017 CPA Australia when it’s wastewater and then we also pay to discharge that. So if you add up all of those costs, it’s about 5 or 6 dollars a kilolitre, whereas if you just buy one kilolitre from Sydney Water Corporation it’s about $1.14’. Similarly, in Beta, the plant environment manager explained that the additional elements of ‘the real costs’ included ‘the costs within our process for treating that water before we can use it, all of the energy requirements, the water treatment plants, filtration, the annual testing’. These novel accounting developments required some effort to assemble and integrate into management reporting processes. In both cases, they were championed by non-accountants (in these cases, environment managers), and were designed to help better argue a case for improving efficiencies and investing in water-specific infrastructure. In drawing on cost accounting data, true cost reflected a growing leverage and influence by nonaccountants over data managed by accountants. True cost overcame the limitations of water cost, by better revealing how water usage affected the economic health of the organisation (Schaltegger and Burritt 2000). In these examples, the true cost of water became a new material symbol (Ezzamel et al. 2012), which added strength to the arguments for greater efficiency, as presented through water reporting. That strength was apparent through the ability that true cost had to contribute to reconciling new community concerns about water scarcity (Waldorff et al. 2013), with dominant market focused logics. Reputation cost Non-accountants were also empowered in some cases, to rework capital investment proposal frameworks to better describe how water usage and water efficiency impacted on broader organisational risks including reputation. In cases where a sense of pressure from community groups and water authorities was acute, ‘reputation cost’ was developed to provide a qualitative understanding of how proposed infrastructure investments could mitigate broader organisational risks. In Epsilon, the head office environment and sustainability managers explained that ‘sticking a number on it [any social or environmental benefits expected as a result of water efficiency initiatives] is always going to have assumptions . . . but ultimately you’re saying, okay, by implementing this program five people on the site who otherwise would have left the business decided to stick around for another 18 months which saved X dollars in recruiting costs and training’ (presumably these ‘people’ would be individuals with some passion for community focused logics about water scarcity). In Beta, the plant level engineer explained, ‘there has been some leniency . . . and it really is based on what is the longterm benefit. Is it the right thing from an environmental Australian Accounting Review 363 Utilising Accounting and Accountants in the Management of Water Efficiency perspective, does it fit with our values and missions?’ Such ‘values’ included the importance of contributing to common environmental challenges including water scarcity. Referring to an example of a recently approved rainwater harvesting system he added, ‘it hits the ticks in all those other boxes’. The plant environment manager also commented on this investment: ‘one thing that’s very hard for us to quantify is the feel-good factor . . . we have kicked a few ideas around the table; it [the ultimate solution] might even be ratings on a chart and assessing values according to various quadrants’. Efforts to document these non-quantifiable risks demonstrate a progressive acquiescing to new community norms about water scarcity (Oliver 1991). Reputation cost was developed as a clever way to exploit nonquantifiability. Reputation cost increased the sense of risk associated with poor water efficiency practices and so increasingly facilitated (Waldorff et al. 2013) a linkage between those new norms and core market logics. Whereas Spence and Rinaldi (2010) suggest that a well-developed focus on ‘sustainability’ accounting might allow some space for non-documentation and ‘gut instinct’, management in Beta were determined to try to ‘kick a few ideas around the table’ in an effort to document relevant risks in a qualitative manner. Documentation was seen as a more powerful way to drive change than ‘gut instinct’. Further to Adams and Frost (2008) and Burritt et al. (2002), these reputation cost examples sought to complement water costing information, water reporting and true cost, with broader insights into how poor responses to community logics impacted on the organisation’s financial health. RQ2. What was the role of accountants? From 2008, accountants in Alpha began to play a more central role in water efficiency. Specifically, they were mandated from that time to help improve the accuracy and meaningfulness of water reporting, and assist with the development of ‘true cost’ calculations. The environment manager explained, ‘the challenge that’s been set for [the chief financial officer] and I is that we need to have a [water] report that a CEO can read that isn’t vastly different from anything else that he reads, yet it’s telling him exactly where we sit environmentally and from a sustainability point of view’. Parker (2000) suggested that accountants should participate in environmental accounting initiatives because they can improve decision utility. Here the operations manager explained, ‘we need accountants involved to make sure it reconciles against our dollar figures and the whole system is repeatable and can stand the scrutiny of audit’. The state accountant also commented positively: ‘as the legislative requirements change . . . almost certainly we’ll have to collect more detail’. 364 Australian Accounting Review M. Egan Explaining how market focused logics dominated in Alpha, the operations manager argued: ‘finance people have been considered to be the controllers of the business’. Nonetheless, other non-accountants influenced by developing community focused water logics (for example, the environment manager), were also now gaining influence (Pache and Santos 2013). So much so, that those others became instrumental in enlisting accountants to help develop new water accounting initiatives. In so doing, accountants in Alpha contributed to a reconciliation (Waldorff et al. 2013) of conflicting community and market logics. Tensions were evident in comments from the accountants as they sought to adapt to these changes. Alpha’s state accountant expressed frustration regarding the CEO’s vision for water reporting: ‘there is nothing special about water, it’s a cost, it’s got statistical requirements, it has got legislative requirements. Let’s not recreate the wheel all the time’. This accountant’s sense of self (Thornton et al. 2012) appeared to be focused fundamentally on market logics. Nevertheless in a second interview in 2010, the environment manager explained ‘the finance people are [evolving and] now talking about kilolitres or kilowatts rather than dollars and cents; so it’s been good both ways’. Apparently with time, and as management carefully made the case for a collaborative response (Reay and Hinings 2009), accountants came to embrace a broadening vocabulary (Thornton et al. 2012), and started to learn ‘new tricks’ (Langfield-Smith 2007). Unlike Alpha, champions for water efficiency in Beta appeared less enthusiastic about drawing on accountants to assist with water accounting initiatives. Despite Beta’s impressive water efficiency responses, the environment manager summarised in 2010, ‘to be honest water’s not a material cost to the business so they [accountants] are probably not interested’. Supporting the arguments of Schaltegger and Zvezdov (2015), he suggested some hostility to accountants: ‘this company is not ruled by just accountants. There’s a managing director who is embracing sustainability’. The plant environment manager also seemed wary of the plant level accounting team: ‘I kind of need to understand what their drivers are’. Providing some contrast, two plant level accountants in Beta were also interviewed. One argued that water ‘is one of the key ingredients . . . it’s our bread and butter so to speak . . . so we do monitor our wastage levels . . . to try and control it’. She remained keen however, to ‘segment’ (Waldorff et al. 2013) water efficiency from core production and profit maximisation concerns: ‘I think environment and accounting is probably in the infancy stage where we are at the moment, and is probably best left separate anyway’. The other reflected somewhat facetiously, ‘I think sometimes environmental decisions are made without considering cost implications . . . if there is a problem you present to an engineer there’s always a solution, of course there is, it might be a jumbo jet C 2017 CPA Australia M. Egan Utilising Accounting and Accountants in the Management of Water Efficiency solution for a bicycle, but there will always be a solution. Whereas the accountant will add that bit of sanity; you don’t need a jumbo jet, you just need a bicycle’. Clearly there were some differences in the norms of water efficiency within Beta, from its accountants to its non-accountants. Beta provides an example of water efficiency progress, despite a segmenting of agents championing community logics (non-accountants), from agents championing market logics (accountants) (Waldorff et al. 2013). However, this bypassing of accountants was probably not going to persist. The environment manager explained in 2010 that management were trying to develop a single integrated ‘database that reports all of those metrics’ (that is, water cost, water consumed in litres, effluent disposed in litres etc). She added, ‘I think there’s a massive role for accounting in our business to do that’. As Alpha had done years earlier, Beta was beginning to appreciate by 2010 that accountants were well placed to contribute to a more facilitative relationship between community and market logics (Waldorff et al. 2013). To do that, just as Alpha had done, Beta would probably also have to work on re-engineering the ‘vocabulary they [accountants] use to motivate action’ (Thornton et al. 2012: 2). The resource usage reports prepared each week by plant level staff in Gamma were not shared with management at head office level. Instead, Gamma’s head office management accountant had recently begun to generate similar data from water bills and sales invoices. Those reports were then included within monthly reports to his board. He explained that this duplication ‘was mainly because of the disjoint . . . operations have kind of been neglected within the company . . . there’s always been this kind of silo mentality where accountants all sit at their computers and twiddle with the numbers’. He added, ‘they [top management] can see there’s a heck of a lot of money to be saved’. Despite its low cost, water was consumed so inefficiently in Gamma that top management saw cost saving opportunities through improving efficiencies. Water reporting developments in Gamma were therefore motivated by norms that were familiar territory for accountants. There was no suggestion in Gamma that new water practices conflicted or contradicted core corporate focused logics (Greenwood and Suddaby 2006). The fear evident in Alpha and Beta that accountants might seek to undermine water efficiency initiatives, was therefore not evident here. Accountants in Gamma thereby assumed control over limited water efficiency practices, focused on cost efficiency. As noted, water reporting in Delta was focused on little more than monitoring usage. Delta’s plant manager explained that these processes were of limited interest to accountants as they were ‘not going to try and save $100 on water when within that same time they could have saved a couple of hundred thousand dollars on other ingredients’. As a consequence (similar to Gamma), there C 2017 CPA Australia was no sense of tension in Delta about the role accountants played, nor any suggestion that the organisation was grappling to reconcile new community logics with core cost/profit focused logics (Cooper 1992). Nonetheless, some acquiescence (Oliver 1991) to logics for the importance of water efficiency was evident in the efforts of the sustainability manager and some plant level staff (non-accountants) who were championing some localised efficiency initiatives. Water efficiency initiatives in Epsilon were limited, and so the role for accountants also remained limited. To summarise, the tensions felt between nonaccountants and accountants across the five cases with respect to water efficiency differed, and can be explained by considering the institutional logics impacting on each. Those non-accountants who sought to champion a focus on maximising water efficiency initiatives spoke of the importance of new community logics (Thornton and Ocasio 2008; Thornton et al. 2012), about water scarcity and the importance of preserving long-term supply. By way of contrast, all accountants interviewed continued to understand their identity with central reference to market logics focused on cost efficiency and profitability. RQ3. What factors motivated this use of accounting and accountants? The Order can be understood to have effected a state imposed logic (Thornton et al. 2012), driving management to map and monitor water usage. That logic impacted on all five organisations and contributed to a growing sense that all were now operating within an identifiable organisational field (Jepperson and Meyer 1991). That logic necessitated some homogeneity of practices across all five organisations (Jepperson and Meyer 1991); all were now required to record and monitor total physical flows (Schaltegger and Burritt 2000), develop savings plans, identify water as an issue of risk and invest in some water sub-meters. All five organisations were also impacted by the market logics implicit within water cost. However, because those costs remained low, they did little to drive significant efficiency responses. In addition to these state and market logics, community logics focused on reputation and the importance of water efficiency were apparently having an impact on some individuals in at least some cases. Where this complexity of logics had some impact, well dissected and regularly compiled water reports had developed to complement existing financial accounting systems (Hopwood et al. 2010). Financial accounting information was an obstacle to any beyond compliance initiatives, as it presented water as unimportant. Further to Schaltegger and Burritt (2000), true cost and reputation cost accountings were therefore developing in some cases, to more Australian Accounting Review 365 Utilising Accounting and Accountants in the Management of Water Efficiency M. Egan Table 2 Key corporate features of each case organisation, and overview of the accounting and role for accountants, evident in each Case Product base Corporate form Decision-useful water reporting? True cost? Reputation cost? Alpha Private Australianbased Staples Yes Yes Not apparent Beta Multinational public with foreign parent Nonstaples Yes Yes Gamma Multinational public with foreign parent Multinational public with foreign parent Multinational public with Australian parent Nonstaples Nonstaples Staples Limited No Seeking to effect some ranking of social and environmental factors Not apparent Limited No Not apparent No No Some isolated qualitative efforts Delta Epsilon convincingly reveal how water usage impacted on the economic health of the organisation. Further to Adams (2002), Cooper (1992), and Gray et al. (1996), accountants were seen as a threat by those seeking to champion progressive water efficiency responses. Non-accountants were generally wary that accountants might undermine practices perceived to be inconsistent with prevailing market logics (Thornton et al. 2012). This paper therefore adds to Burritt and Tingey-Holyoak (2011) and IFAC (2012) by suggesting that despite decades of effort encouraging members to engage more effectively with such novel organisational developments, the accounting profession’s success continues to be limited. Further research could explore whether the accounting profession might have more traction with other strategies. With a ‘multicultural’ appreciation of all three of these competing logics (Pache and Santos 2013), the environment manager in Alpha was keen to encourage accountants to engage with the organisation’s water initiatives. She argued, ‘we have to be always very vigilant in what we do in terms of actually reducing water use to make sure it doesn’t compromise what we’re actually doing, which is producing safe food for the consumer’. Alpha represents the first of these five organisations to encourage accountants to participate in initiatives that went beyond simply monitoring water usage. Her motivation was a sense that accountants could become important ‘lynchpins’ between competing logics (Glynn and Raffaelli 2013), and so assist with integrating disparate reporting processes (Parker 2000). By way of contrast, market logics prevailed in Gamma, Delta and Epsilon. As a result, accountants were given responsibility for managing limited water reporting initiatives which focused on monitoring and on regulatory compliance. However contrary to the conclusions from 366 Australian Accounting Review Accountant’s role Improving accuracy, consistency, and enabling true cost calculations Enabling true cost calculations Monitoring water usage Monitoring water usage Limited Albelda (2011) and Milne (1996), the outcome in each of these cases cannot simply be dismissed as ‘business as usual’. In each case, tenacious plant level staff were also able to champion some efficiency initiatives. However, those initiatives remained largely segmented from core profit focused activities (Waldorff et al. 2013). Table 2 reveals the corporate form and product base3 of each organisation. Table 2 demonstrates that these factors cannot explain variations in the use of accounting and accountants across the five cases. To summarise our response to research question 3, basic water reporting was driven by the monitoring requirements of legislation. In some organisations, top management felt compelled by a sense of pressure and scrutiny from community stakeholders to go further and seek opportunities to maximise efficiencies. In these cases, water reporting was further developed to provide greater dissection across process and location. The more responsive organisations in this study were also beginning to draw on accountants to help reconcile developing community logics to prevailing market focused logics. True cost and reputation cost were developed in some cases with the help of accountants, and provided deeper insight into how inefficiencies impacted on the organisation’s financial health. In other cases where top management lent little support to developing community logics, localised water accounting initiatives did little more than monitor usage, and were largely managed by accountants. RQ4. What was the impact of accounting and accountants? Existing literature suggests that effective environmental accounting initiatives should measure both physical and monetary flows (Schaltegger and Burritt 2000; Adams and Frost 2008; Fries et al. 2010). The C 2017 CPA Australia M. Egan Utilising Accounting and Accountants in the Management of Water Efficiency comprehensive examples of water accounting evident in Alpha and Beta can be seen to have done both. Well dissected water reporting in these cases began to render ‘transparent formerly invisible’ (Parker 2000: 48) physical flows, and contributed to plant level efficiency investigations. True cost provided deeper insight into monetary flows, and so contributed to efforts to reconcile (Reay and Hinings 2009) multiple competing logics (Oliver 1991). True cost and reputation cost also broadened discourse across these organisations by obliging engagement with accountants. Through these interactions, norms about the importance of water efficiency began to enter the ‘day to day activities of [an expanding range of individuals and their] organisational life’ (Johnson et al. 2003: 3). Contrary to Gray et al. (1995), this study demonstrates that accounting is capable of contributing to goals that do not clearly align with cost efficiency and profitability. Further to Adams and Frost (2008), ‘old-fashioned gut instinct and vision’ (Spence and Rinaldi 2010: 58) were not enough for those keen to pursue a progressive approach to water efficiency. Non-accountants, including environment managers, plant managers and production managers, were central to the progressive examples of water efficiency change evident in this study. Environmental managers were employed within all five organisations, and assigned a number of responsibilities including managing compliance with the Order. However, regardless of what their ‘statement of duties’ may or may not have required, all environment managers interviewed were attuned to the drought and keen to champion as best they could, a particular set of community logics focused on resource efficiency. Creative accounting initiatives became critical to the efficiency changes they sought to drive. Water accounting began in each case with water reporting. However, a challenge for individuals keen to champion efficiency change, was to link the importance of evolving practices to dominating norms focused on cost efficiency. As water remained cheap, cost was an inadequate ‘lynchpin’ (Glynn and Raffaelli 2013) between community logics and dominant market focused logics. Non-accountant champions therefore appreciated that to get traction, other creative accounting initiatives were needed that better connected with dominant market focused logics. The environment manager in Alpha summarised: ‘what we’re talking about is trying to marry the two together, so put environment into our standard reporting processes so that we can get robust data for our sustainability reporting as well as our mandatory reporting. But I also like to bring more cost information into things as well so that we can say well look, we use so much electricity and this is what it costs, this is what it’s likely to cost in four years’ time’. An adaptation of core corporate logics (Thornton et al. 2012) was also evident where these comprehensive accounting examples directed attention to more difficult to measure factors including C 2017 CPA Australia reputation, brand value and longer-term resource security. We add to Waldorff et al. (2013) by observing that logics that might initially be seen as competitive, can become facilitative where top management lend support (Rodgers et al. 1993) through strong reconciling arguments. The facilitative arguments developed in Alpha and Beta suggested that by maximising water efficiencies, the organisation could respond to negative attention, and so better secure longer-term water supply needs. Some water efficiency change was also achieved in Gamma through a ‘segmenting’ (Waldorff et al. 2013) of well dissected plant level water reporting processes, from distinct summary level water reporting prepared at head office. This ‘hands off’ approach allowed plant level non-accountants some success in improving efficiencies. The plant manager explained that giving him space to develop his own reporting processes was ‘an awful lot better for me in terms of saving water’. By way of contrast, Gamma’s head office accountant explained that the distinct water reports prepared at head office were designed ‘primarily just to do the financial modelling. We use it not only to look historically but also to look forward’. Market focused norms unambiguously dominated in Delta and Epsilon, which enabled management to constrain water ‘to a safe and controllable issue’ (Gray et al. 1995: 233). Further to Larrinaga-Gonzelez et al. (2001), this constraining was achieved through accounting that limited the focus of related discourse to monitoring and compliance. The plant manager in Delta explained, ‘of course they [management] are going to worry about the water; but they are going to focus where the dollars are’. Accountants in all five cases initially sought to simplify related discourse to a monocultural focus on market logics. Accountants argued that efforts to improve efficiencies should not exceed what was cost effective. For example, the accountant in Alpha argued, ‘there’s nothing special about water, it’s a cost’. Ezzamel et al. (2007) argued that organisational participants may have difficulty untangling the importance of new logics from prevailing logics. The tension evident here provides insight into how the multiple logics impacting in these organisations competed and differed. Further to Armstrong (1985), the organisational hierarchies in Alpha and Beta were not simply dominated by accountants. A culture of collaboration (Reay and Hinings 2009) in these cases allowed other voices to respond to community concerns and champion a focus on maximising water efficiencies. Nonetheless, as those other voices progressed with embedding water efficiency change, they ultimately also saw opportunity to draw on accountants for their ability to provide ‘transdisciplinary’ (Tingey-Holyoak and Burritt 2012) linkages between market and community logics. This study provides an example of one of the classic problems for the environment; organisations will remain oblivious to significant logics impacting broadly on society (such as drought), unless agents are able to reconcile Australian Accounting Review 367 Utilising Accounting and Accountants in the Management of Water Efficiency M. Egan Table 3 Summarised representation of the impact of accounting and accountants Combination of logics impacting on top management Water efficiency dominated by The objective of related accounting initiatives Market and state Market, state and community Accountants Non-accountants Monitoring Decision utility those logics to issues of commercial importance. In some cases, a surprisingly small number of non-accountants in this study were able to mobilise a very real set of logics impacting outside their organisations. They did this by presenting those logics as an existential threat to the business. Those threats were visualised through creative accounting solutions that focused attention on how drought threatened water supply, and therefore organisational survival. This study shows that social issues can come to impact on organisational practice, where accounting initiatives are allowed to give them traction as issues of organisational survival. In summary, in Alpha and Beta, support for new community focused logics was clearly articulated from the CEO level. Through that support, non-accountants in both were given a mandate to develop a broad water accounting toolkit, which facilitated effective exploration of water inefficiencies. Furthermore, non-accountants in Alpha were also now increasingly drawing on the skills of accountants, to enable integration of the ‘material’ aspects of water efficiency practice, with the ‘ideal aspects’ (Thornton et al. 2012: 42) of existing market and emerging community focused logics. By contrast, nonaccountants in Beta continued to remain segmented from accountants and their market focused logics. It seemed likely, however, that this ‘by-passing’ of accountants would not persist. In Gamma, Delta and Epsilon, state and market logics dominated. Segmentation enabled some response to community logics at plant level in Gamma. Generally however, contrary to Länsiluoto and Järvenpää (2010), but consistent with Armstrong (1985), accountants in these three cases presided over a limited range of accountings. Accounting here offered an appearance of a response to new community logics, but in reality focused on simplistic monitoring and accountability reporting to top management (Byrne and Pierce 2007). The arguments developed here about the impact of accounting and accountants are summarised in Table 3. Conclusions With clear top management support (Rodgers et al. 1993), it is apparent that engineers, environment managers and production managers are all capable of imagining and implementing a range of creative, decision-useful accounting solutions to community focused logics about environmental challenges. However, in making space for practices that do not clearly link 368 Australian Accounting Review with core logics, we argue that an organisation should approach its accountants with caution. Despite encouragement for some time from the accounting profession to engage with issues of ‘sustainability’ (KPMG 2008), our study suggests that accountants may struggle to appreciate how acquiescence (Oliver 1991) can benefit the organisation. This mismatch between the ambitions of the accounting profession, and the interest of members, needs to be reflected upon. A myopic focus on the ledger is unhelpful to either accountants or the organisations for which they work. Organisational objectives and challenges are constantly evolving, and so those who view them solely through a financial lens may have little to offer beyond compliance. Our study makes two key contributions to understanding how accounting and accountants can contribute to a developing focus on water efficiency. First, a broad complement of physical, monetary and qualitative water accounting initiatives were best able to reconcile apparent contradictions in state, market and community logics about water. The state logics presented within the Order demanded some reporting of physical water flows. Water costs were low, however, and so that market symbol had limited ability to motivate management to dissect water reports in greater detail. Where state and market logics dominated, water reporting was therefore managed by accountants, and focused simply on monitoring usage (Larrinaga-Gonzalez et al. 2001). However, as broader community focused logics came to have some impact within each organisation, non-accountants (including engineers, environment managers and production managers) were given latitude to further develop water reports, so as to better inform investigation into inefficiencies and leaks. To complement well-dissected water reporting, some also developed a variety of other monetary and qualitative accountings. Non-accountant champions for water efficiency change increasingly appreciated that true cost and reputation cost could enhance arguments for a complementarity (Thornton et al. 2012) between competing logics (Glynn and Raffaelli 2013). That complementarity became most apparent in arguments that long-term water supply needs, and therefore survival, were threatened unless the organisation could demonstrate a focus on maximising efficiencies. In this manner, nonaccountants ‘garnered support for engaging with new combinations’ of logics (Thornton et al. 2012: 62), as visualised through a range of novel accountings. The development of reputation cost suggests that contrary to Spence and Rinaldi (2010), some qualitative accounting C 2017 CPA Australia M. Egan Utilising Accounting and Accountants in the Management of Water Efficiency is an important complement to physical and monetary accounting initiatives. Second, accountants questioned how any focus on water efficiency was of organisational value. Contrary to Länsiluoto and Järvenpää (2010) and Monteiro and Aibar-Guzman (2010), who argued that accountants will avoid any active participation in novel practices of this nature, accountants in this study dominated water related practices in Gamma, Delta and Epsilon. In these cases, water efficiency was a low priority for top management, and so accountants were directed to preside over a limited range of responses, focused simply on monitoring usage. Nonetheless, some segmented space for isolated plant level water efficiency initiatives was also able to develop in some of these cases. On the other hand, where a strong focus on water efficiency was mandated by top management (Alpha and Beta), accountants were initially bypassed, but ultimately became important transdisciplinary (Tingey-Holyoak and Burritt 2012) lynchpins (Glynn and Raffaelli 2013), to help non-accountants strengthen links between community and market logics. Alpha demonstrates that where carefully managed, accountants can make a positive contribution to practices that do not have an immediate and compelling link to market focused logics. This study ends with several suggestions for future research. The five organisations targeted here were only just beginning to experiment with novel water accounting techniques. As drought conditions subsequently abated into the mid-2010s, the limited water accounting developments evident across these five cases may therefore also have eroded. Further research could explore how novel accountings of this nature continue to either evolve or erode as community logics change. While this study focused on questioning the logics driving the five case organisations to utilise accountants as they did, future research could explore motivations from the perspective of accountants. Other studies could consider where novel activities such as water efficiency might best be ‘placed’ within organisations (which departments, etc.), and explore organisational perspectives on the ‘right’ mix of demand management strategies. Acknowledgements The author would like to acknowledge and thank staff at the anonymised case study organisations for their access and assistance. The author would also like to thank attendants at the 2012 British Accounting and Finance Association BAFA Annual Conference, Brighton, United Kingdom, the 2011 RMIT Accounting for Sustainability Conference, Melbourne, Australia, and the 2011 Australasian Conference on Social and Environmental Accounting Research CSEAR, Launceston, Australia, for comments on earlier drafts of this paper. C 2017 CPA Australia Notes 1 The terms ‘environmental’ and ‘sustainability’ management will be drawn on in this paper as little as possible. Our interest here lies with water efficiency as a specific example of such practice. 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