Accounting problems: Over-relying on the construction of accounting profits could have damaging effects, physically and socially

School of Accounting Researcher Professor Alan Lowe and Lecturer Yesh Nama are in the final stages of completing a special issue in Accounting, Auditing and Accountability.

Lowe and Nama aim to solve issues surrounding profit and profitability and their harmful implications for society, proposing that we should “study the mechanisms of [sociology of profits, and] its social construction” (Breton & Caron, 2008, p. 85).  

Lowe and Nama’s research expands on the conceptualisations of profit and profitability.

Profits have a broader definition beyond monetary financial profits which accounts for ‘externalities’ and the side effects of poor governmental and corporate activities. 

In short, profits should encompass socio-political ‘benefits and costs’. 

For instance, political parties may benefit or profit from certain activities and raise issues purely for political purposes which can have severe consequences on social stability and political coherence. A likening experience to an acceptance of immoral or fraudulent behaviour.

To find out how your organisation can get involved with this research project, contact: accounting@rmit.edu.au

Story: Rekha Ryan

KPI
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RMIT University acknowledges the people of the Woi wurrung and Boon wurrung language groups of the eastern Kulin Nations on whose unceded lands we conduct the business of the University. RMIT University respectfully acknowledges their Ancestors and Elders, past and present. RMIT also acknowledges the Traditional Custodians and their Ancestors of the lands and waters across Australia where we conduct our business.

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