Professional Documents
Culture Documents
Introduction
Accounting is teleological action in the broadest sense of that term-action
oriented toward human needs and desires that are not merely imperatives of
nature, and action that is a candidate for moral reflection and deliberation. In
short, accounting is highly situated in the context of human interests, and it is
the relation between accounting action and human interests that concerns us
in this paper. We view accounting’s relation to interests through the lens of
communication, a context where accounting has often been a home.’
Approaching questions of accounting’s relation to interests in a com-
municative way is different from subjectivist approaches; i.e., those that make
an ontological presupposition that interests originate with and attach to
specific individuals or groups. Interests, as we construe them, are pragmatic
and not subjectivist: their shape and character have to do with the intersub-
jective conditions which surround discourse oriented toward deciding upon
how accounting ought to serve a polity. We argue for a discursive arena in
which any conceivable claim about that shape and character can be brought
to bear upon accounting in a democratic and rational way. Interests and
Address for correspondence: Professor E. Arrington. University of Iowa, Department of
Accounting. Iowa City, Iowa 52242, U.S.A.
Received 24 April 1990; revised 4 November, 26 November 7990; accepted 5 December 7990.
31
'045-2354/~1/010031+28 $03.00/O CCJ 1991 Academic Press Limited
32 C. 33. ~~~~~~~ and A. G. Paxty
accounting’s relation to them are not then determined but are fluid and
interactive. In this sense, we are pluralists; we do not offer a singular
substantive interest presumed sovereign over accounting. But in a more
important sense, we seek rational grounds for working through a pluralistic
space of interests. That entails a recognition that, while accounting may be of
relevance to a practically infinite number of interests, it nonetheless does (and
must) trade among those interests. Accounting action is always positively
aligned with certain interests, and it always ought to be contestable in terms
of the interests that it discounts and impedes. The important question then
becomes how accounting might come to relate to particular interests in a way
that is grounded in criticizable reasons and is, thereby, made rational. We
suggest that the rationality of accounting action as interested action depends
upon securing certain conditions of public argument that can be called
democratic.* By viewing the rationality of accounting as determined by
processes of democratic communication, we stand over and against the two
alternative means for the adjudication of interests-money and power.3
We appropriate our arguments from the work of Jiirgen Habermas;4 in our
view, the foremost social theorist of our time. Solicitous as that claim might
appear, it nonetheless suggests the importance of Habermas if we are to
break out of what Miller and O’Leary describe as accounting’s remarkable
insulation from important theoretical and historical debates that have tra-
versed the social sciences (1987, p. 235). Others have introduced some
Habermasian thematics to accounting, and we add some new ones: no single
essay can capture more than a smattering of the relevance of Habermas’
broad and systematic programme to accounting (for other work, see Laughlin,
1987; 1988; Roberts, 1988; Power, 1988; Puxty & Chua, 1989). We also have
the benefit of access to Habermas’ more recent Theory of Communicative
Action, a text which approaches the question of interested action in a manner
different from his earlier work.5
We begin with a discussion of accounting’s relation to interests, illustrating
that relation with some examples from extant research. Our objectives here
are (1) to establish the contestability of accounting with respect to interests;
(2) to argue that the possible ways of configuring accounting in relation to
interests are practically infinite; and, (3) to turn brief attention to the question
of whether interests can be rationalized in accounting; that is, whether it is
possible and desirable to try and make accounting’s relation to interests be
the subject of reason and critique. This essay proposes a positive answer to
this question since we turn subsequent attention to a theory of the rational
adjudication of accounting as interested action. In the next section, we
describe a three-fold typology of relations between interests, communicative
practice, and accounting action. In the section before the conclusions, we
discuss the ethical-political conditions under which accounting can claim
status as rational interested action. We conclude the essay with some
comments on the relevance of our work to critical theories of accounting, and
we raise some questions that confront both Habermas and our use of his texts
here.
Two caveats are in order. First, Habermas’ work is massive and complex.
We not only extract from his work in a way that does injustice to its
Acccsamtimg,interests, and ratimalty 33
Some Background
While the idea of accounting as a disinterested (or neutral) pursuit maintained
currency for most of this century,6 contemporary research is recovering a
concern with accounting’s contestable relation to interests. As Hopwood
(1989) notes:
“Accounting is coming to be regarded as an interested endeavour. Rather
than being seen as merely residing in the technical domain, serving the role
of a neutral facilitator of effective decision-making, accounting is slowly
starting to be related to the pursuit of quite particular economic, social and
political interests. The active and influential ways in which accounting is
implicated in the construction and propogation of notions of organisational
and social control are now starting to be addressed” (p. 141).
There are many examples of inquiry into how accounting relates to particular
interests. The economic consequences literature (see Zeff, 1978, 1981) recog-
nizes that accounting can have detrimental impacts on the ability of particular
people to fulfill their needs and desires; Neimark (1986) recovers a positive
sense of the public interest in accounting out from under the Hobbesian
atomism of a social theory grounded in private interests; Williams (1987)
critiques accounting from a Rawlsian perspective on procedural justice and
fairness; Lehman (1988) makes accounting contestable in terms of sexist,
ideological and political interests; Tinker, Merino and Neimark (1982) and
Tinker (1988) point to the normative origins of positive theories of accounting
[proponents of positive theory now confess that normativity, belated and
partial though such confession might be (see Watts & Zimmerman, 1990)].
Shearer and Arrington (1989) critique the masculine ideology embedded in
accounting’s income calculus, and Puxty and Chua (1989) correlate different
conceptions of the rationality of accounting with different configurations of
interests. Many more studies could be cited here, and they all point to the
descriptive accuracy of Hopwood’s claim with respect to contemporary
research and its understanding of accounting as an interested and contestable
Practice. The number of ways of configuring or contesting accounting’s
relation to interests is, for practical purposes, infinite-as different as all the
many ways of organizing economic action and communicating with respect to
such organizations.
We want to illustrate two quite different examples of the renascent concern
with accounting’s relation to interests in a bit more depth. Positive accounting
34 C. E. A~~~~~~~ md A. (6.
theory represents a radical paradigmatic shift inside neoclassical approaches
to accounting. Here, accounting comes to be seen as an economic good-a
factor of production to be managed strategically and efficiently in self-
interested pursuits. As Watts and Zimmerman (1990) state, positive theory
overcomes earlier “information perspectives” which subordinated accounting
to financial models and thereby ignored accounting’s relevance to appropria-
tive self-interests. These earlier approaches presumed that
II . . . accounting choice per se could not affect firm value. fnformation is
costless and there are no transaction costs in the Modigliani and Miller
(1958) and capital asset pricing model frameworks. Hence, if accounting
methods do not affect taxes they do not affect firm value. In that situation
there is no basis for predicting and explaining accounting choice. Account-
ing is irrelevant” (1990, pp. 132-133).
Positive theory moves from the abstract category of “firm value” to the
microeconomic and game-theoretic models of individuals strategically com-
peting for private wealth and utilizing accounting as a factor of production
with respect to that wealth. Accounting gets configured in between the
interests of creditors and debtors (Jensen & Meckling, 1976; Smith & Warner,
1979; Leftwich, 1983); owners and managers (Smith & Watts, 1982; Watts &
Zimmerman, 1978); and equity-holders and regulators (Zmijewski & Hager-
man, 1981; Zimmerman, 1983; Ball & Foster, 1982). Accounting can be
managed to coordinate actions (to, for example, write contracts that har-
monize reciprocal self-interests) or to produce wealth transfers that are
suspect in light of the various Lockean presuppositions embedded in neoclas-
sical property rights theory, a theory which provides the moral-political as
well as the economic context of positive accounting theory.
Tinker (1980) and Cooper and Sherer (1984) describe a political economy
approach to accounting that can, broadly speaking, umbrella a number of
studies of accounting’s relation to interests which take very different perspec-
tives than those of positive accounting theorists. Here, as with the “Cambr-
idge Controversies” in economics, the legitimacy of neoclassical theories of
interests (including property rights) is not presupposed but is instead the
subject of broader debates in welfare economics, the sociology of profes-
sions, and social, moral, and political philosophy (for accounting examples,
see Tinker, 1980; Tinker, Merino & Neimark, 1982; Armstrong, 1985; Neimark,
1986; Arrington & Francis, 1988; Lavoie, 1987). Social practices become
contestable on a number of fronts, and accounting is one of those practices.
Unlike the equilibrium-based and subjectivist perspectives on interests of
positive theorists, political economy approaches accent the conflictual and
public character of accounting’s relation to interests:
“Instead of assuming a basic harmony of interests in society which permits
an unproblematic view of the social value of accounting reports, a political
economy of accounting would treat value as essentially contested, with
accounting reports operating in specific interests (e.g., of elites and
classes)” (Cooper & Sherer; 1984, p. 218).
Like positive theory then, a political economy approach to accounting
recognizes accounting’s interested status. But unlike positive theory, political
economy approaches attempt to reintegrate the economic sphere into the
A~~~~Q~~g, interests, and ratisnatity 35
them. In the broadest sense, the notion of an objective function expresses the
desire to move from one objective world to another.
The economics of information-in the broadest possible sense-is a good
example of rationalizing accounting in terms of objective interests, teleologi-
cal action, and validity claims to success. Here, accounting is a form of
information designed to reduce uncertainty with respect to “what is the case
in the world” (the state of nature) with an already presupposed objective
function (say, maximization of profits) and accounting-conditioned probabil-
ities of success in bringing about alternative states efficaciously. This broad
thematic takes various metonymic forms like accounting’s cartographic role
(the representation of “facts”), its role in efficiently coordinating instrumental
action (budgeting, incentives, contracting, organizational design), its tech-
nological adequacy (i.e., its value as an economic good as measured by
standards of its efficiency with respect to the conversion of inputs-an
existing state of affairs -to a desired output-an alternative state of affairs);
and, finally, its usefulness in game-theoretic processes. Anytime accounting is
cast as a means toward ends presumed given and unproblematic, then it is
best rationalized as teleological action oriented toward success in fulfilling
objective interests. There are as many ways of construing and contesting
accounting here as there are ways of interpreting “what is the case in the
world” (empirical validity) and ways of organizing relations of production to
arrive at an alternative objective world. The dominant metaphors here are
accounting as accurate representation of facts and accounting as an efficient
technology.
The triptych of objective interests/teleological action/validity claims to
success sets aside both the question of the rationalization of ends and the
question of constraints on the means to achieve them. In that sense, it is a
regime of accounting where any end and any means to arrive at that end are
presumed admissible. The poverty of this triptych as a totalizing theory of
accounting as interested action is that it suspends the context of social norms
which constrain both the kinds of worlds (ends) we can legitimately pursue
and the means we can employ in that pursuit. Accounting cannot, for
example, legitimately function in our society as action oriented toward a
terrorist’s interest in the production of nuclear weapons. Nor is it exempt from
critique by those who view its service to the production of such weapons for
our military institutions with suspicion. Likewise, the efficiency of production
cannot, in our society, reach to means like institutionalized slavery or the
overt dumping of toxic waste on our neighborhoods. Such dramatic examples
perhaps ought to yield to more mundane ones like contestability with respect
to the organization of production, a public choice certainly contestable in
ways that surpass the technical efficiency of various economies of production.
The teleological model of a single actor legitimately treating the rest of the
world as something to be objectified and acted upon instrumentally in a
“game against nature” suspends arguments with respect to generalizable
Accounting, interests, and rationality 41
“The concept of normatively regulated action does not refer to the behavior
of basically solitary actors who come upon other actors in their environ-
ment, but to members of a social group who orient their action to common
values. The individual actor complies with (or violates) a norm when in a
given situation the conditions are present to which the norm has applica-
tion. Norms express an agreement that obtains in a social group. All
members of a group for whom a given norm has validity may expect of one
another that in certain situations they will carry out (or abstain from) the
actions commanded (or proscribed). The central concept of complying with
a norm means fulfilling a generalized expectation of behavior. The latter
does not have the cognitive sense of expecting a predicted event, but the
normative sense that members are entitled to a certain behavior. This
normative model of action lies behind the role theory that is widespread in
sociology” (Habermas, 1984, p. 88).
and to which only one individual has privileged access (Habermas, 1984, p.
52). This is the domain of preferences, beliefs, imaginations, wills, desires,
motives, etc. that are not legitimately abstracted beyond the individual.
Accounting is a form of action that has unique consequences for private
interests-it is a complex human practice that affects the lives of millions of
people in millions of different and non-innocent ways.
Private interests can be aligned with accounting through the concept of
dramaturgica/ aCtiOn :
Summary
Accounting’s relation to interests can be construed in terms of a three-world
model of interested action. Accounting stands in relation to (1) the needs and
desires of humans to intervene in the objective world; (2) the needs and
desires of humans to recognize themselves as members of a community
sustained by norms and values that go beyond the private desires of each
individual citizen; and, (3) the needs and desires of an individual, needs and
desires to which she alone has privileged access. We cannot imagine an
accounting act that escapes any of these three relations to interests as
accounting is always at least (1) a means toward economic ends that (2) are
the norm-governed ends of some particular polity and that (3) are consequen-
44 C. I!.. ~~~to~ and A. 6. Buxty
tial for individuals with unique needs and desires. Accounting thus stands in
contestable relation to three worlds:
1. The objective world (as the totality of all entities about which true
statements are possible). Here, accounting becomes contestable in terms
of success (and the two conditions from which success can be
evaluated-truth and efficiency);
2. The social world (as the totality of all legitimately regulated interpersonal
relations). Here, accounting becomes contestable in terms of the norma-
tive rightness of accounting action; and,
3. The subjective world (as the totality of the experiences of the individual
to which he, and he alone, has privileged access). Here, accounting
becomes contestable in terms of its consequences for private experience.
(adapted from Habermas, 1984, p. 100).
What makes accounting both important and contestable is precisely the
complexity of acting in a way that assimilates these three worlds and thereby
accepts attendant obligation to rationalize such action through the relevant
types of validity claims. We now turn attention to a brief excursus into the
social-political conditions that would make such rationalization possible.
The Ethical Grounds for the Very Possibility of Rational Social Action
The contribution of Habermas as a social theorist is the paradigmatic potential
he offers to reconstruct the rationality of social systems from the metatheoret-
ical spheres of (1) communicative (rather than teleological) action and (2) the
philosophy of language (rather than the philosophy of consciousness)
(adapted from Thompson, 1983). Social action is not first “goal-directed”
(teleological) nor is society first a place for solitary subjects to materialize the
noetic (consciousness). That is because goals are themselves constructed out
of the dynamics of intersubjective assent to (or refusal of) them. Goals cannot
then be first understood from inside a social space where language is simply
a means toward their public representation, nor are they brought to language
by a Cartesian subject presumed fully armed with them. Instead, goals are
themselves products of communicative interaction where-in interaction with
others, and in drawing upon the background presuppositions embedded in
the life-world shared with others-the possibility of social action and the
materialization of the goals that drive that action are born and rationalized
contemporaneously with the raising and questioning of validity claims
intersubjectively; that is, attributable neither to subjectivity nor to the
imperative to act upon the objective world:
“This concept of communicative rationality carries with it connotations
based ultimately on the central experience of the unconstrained, unifying,
consensus-bringing force of argumentative speech, in which different
participants overcome their merely subjective views and, owing to the
mutuality of rationally motivated conviction, assure themselves of both the
unity of the objective world and the intersubjectivity of their lifeworld”
(Habermas, 1984, p. IO).
Accounting, interests, and rationality 45
From here, we would align our essay with political economy approaches
since they keep accounting contestable in terms of different configurations of
production, of property, of welfare economics, of property rights theory, of
social, political, and organizational theory, of ethics, of subjectivity, etc. And
we would offer the notion of communicatively rational action as an enhance-
ment to political economy approaches capable of opening a research window
on questions about how interests are in fact adjudicated in accounting and
how particular accounting acts do and must transpire with both empowering
and pathological consequences. We would also offer positive theory the
opportunity to engage in debate with respect to the interests that it
fosters-instead of hiding behind the naturalistic (and ultimately religious)
metaphors of “survival of the fittest” and a solipsistic and ahistorical motive
to self-interest, this would give positive theory a chance to rigorously argue
the legitimacy of presupposing that accounting’s service to a society gov-
erned by a radically individualistic morality and the “useful tautology” of
“Survival of the fittest” is-in fact-in our “best” interests (see Jensen, 1983).
gut there is one suspicion we have about Habermas’ programme that has
profound implications for accounting. In a world of global capitalism, one
recognizes the irrelevance of public life to capital growth. In a word, capital
becomes immune from political will simply because it can span political
boundaries in milliseconds-capital does not go through customs; it bounces
off satellites. As Marx well knew, capitalism is a structural phenomenon
governed by a single objective-it must grow in order to remain capitalism.
We see the empirical manifestation of that insight today: the migration of
capital to the most “efficient” (often meaning lowest paid) sources of labour
and the resultant implications of that migration for a deskilled Western labour
force and an exploited Third World; the inability of Western countries to retain
ownership of their own lands and capital assets; the crisis of environmental
devastation where productive forces transfer incalculable costs as negative
externalities. In turn, the government cannot restrain that transfer since it
depends upon the profits driven by those externalities to support the welfare
state of those economically disenfranchised, those who, absent those transfer
payments, pose a threat to the “stability” of both the government and the
market [e.g., the underground economy with both its siphoning of resources
and its destabilizing public force (drugs, violence, etc.)]. With a technological
boost (satellite transfers, integrated markets, etc.), capital’s “efficient growth”
comes at the cost of the irrelevance of political boundaries, and, with that, the
irrelevance of public will formation. A theory like Habermas’, one that in the
final analysis is a theory of public will formation, becomes suspect in a
depoliticized economic world.23
We can respond at this level only with an act of faith-in Richard Rorty’s
terms, a “hope against hope” that rational public will formation is still
relevant to our lives, even if that hope seems ungrounded. But if recent events
in the Eastern bloc, the incredibly rapid annihilation of corrupt regimes of
political power, are the product of the public’s will to protest, then there is
perhaps hope in the promise of the public voice for the Western bloc (and
others) as well. The progressivist era decision to turn public choice over to
communities of experts presumed neutral and disinterested-a decision that
resides at the origins of the instrumental rationality of accounting practice
(see Miller & O’Leary, 1987)-is beginning to look like a bad idea. Technocratic
accounting grew out of that idea. And the task of critical theories of
accounting is to subvert that idea, to make it possible for such bureaucratic
expertise to be governed by public argument:
“I think, then, that the chief task of philosophy is to justify this way of
reason (public argument) and to defend practical and political reason
against the domination of technology based on science. That is the point of
philosophical hermeneutics. It corrects the peculiar falsehood of modern
consciousness: the idolatry of scientific method and of the autonomous
authority of the sciences and it vindicates against the noblest task of the
citizen-decision-making according to one’s own responsibility-instead of
conceding that point to the expert” (Gadamer, 1975, p. 312).
Acknowledgements
We should like to acknowledge the helpful comments of Christine Cooper, David
Cooper, Anthony Hopwood, David Klemm, Donald McCloskey, Michael Power, William
54 C. E. Araingtcan amd A. G. Puxty
Notes
1. There has in accounting theory generally been a distinction between images of accounting as
communication and as a means of accountability (see, for example, SATTA, 1977, Davis et al.,
1982). We propose to argue that this is a false distinction.
2. That is, we propose to move toward a definition of “democratic” (in the section “The ethical
grounds for the very.. . “) that is not tied to the assumptions of most traditional pluralist
theorizing but instead opens the way for adjudication of claims to rightness through criteria
for rational discourse. Thus. for instance, democracy here does not mean simply equality of
opportunity to vote or engage in economic activity.
3. By money, we mean the “voting power” of those who control economic resources.
Grounding accounting’s rationality in its service to the market is a good example of using
money rather than communication as a criterion of reason (and therefore rationality). We use
the term power in the coercive sense-the exercise of political or physical strength to guide
action in a way immune from critique. The economic tyrannies of Eastern bloc regimes have
constituted a good example.
4. We appropriate primarily from Habermas’ Theory of Communicative Action.
5. Here we make reference to Habermas’ earlier text Knowledge and Human Interests, a text
where the relation between interests and action is construed in terms of the distinction
between work and interaction. In The Theory of Communicative Action, Habermas treats
interests in a more diffuse and complex manner, one that depends less on economic and
noetic categories and more upon structures of communication. Stephen White (1989)
provides an adequate description of transitions in Habermas’ approach to interests.
6. Miller and O’Leary (1987; 1989) trace modern accounting’s “displacement” from interests
back to the progressivist ethos of the early 20th century. Accounting-like scientific
management, industrial psychology, eugenics, intelligence testing, and other discourses of
expertise-convinced a suspicious government that it could enhance the social product in a
way that was morally innocuous and neutral. We refer the reader to Miller and O’Leary’s work
for the relevant history of this idea.
7. For a similar claim but a very different kind of study, see March (1987).
8. The philosophically-inclined reader may find it interesting to reflect upon how the differences
between Devine’s approach and Neimark’s approach is an example of what Ricoeur describes
as a choice with respect to the fundamental gesture of all philosophical reflection:
“Is this gesture (of reflection, C.E.A. & A.G.P.) an avowal of the historical
conditions to which all human understanding is subsumed under the reign of
finitude? Or rather is it, in the last analysis, an act of defiance, a critical gesture,
relentlessly repeated and indefinitely turned against “false consciousness”,
against the distortions of human communication which conceal the permanent
exercise of domination and violence?” (1981, p. 63).
9. As will become more clear, the “three-world” typology that Habermas provides is heuristic.
Action and discourse (and therefore rationality) are always and already embedded in the
“three” contemporaneously.
IO. The term teleological takes on a more narrow sense here than the sense implied in the
introduction to this essay.
11. We do not mean to align the lifeworld concept here strictly with generalizable interests.
Indeed, as post-empiricist philosophy of science has shown, objectivity and the representation
of “what is the case in the world” are themselves dependent upon the interpretive and
hermeneutic shape of a community. Thus the intelligibility of even objective interests and
teleological action are ontologically possible only from origins in a lifeworld concept.
12. Use of terms like values in conjunction with norms is suspect. Norms are something akin to
behavioural expectations presumed binding. Values, on the other hand, are more diffuse.
55
Hab@rmaS writes:
1, . . . values are candidates for embodiment in norms-they can attain a general
binding force with respect to a matter requiring regulation. In the light of cultural
values the needs (Bediirfnisse) of an individual appear as plausible to other
individuals standing in the same tradition. However, plausibly interpreted needs
are transformed into legitimate motives of action only when the corresponding
values become, for a circle of those affected, normatively binding in regulating
specific problem situations. Members can then expect of one another that in
corresponding situations each of them will orient his action to values norma-
tively prescribed for all concerned” (1984, p. 89).
13. Habermas directs attention here to how a norm must count as justified. The validity of a norm
cannot be assumed simply from its de facto presence. Coercive orders and commands,
control systems, and disciplinary practices, for example, may have “social currency” without
validity. Habermas writes:
“That a norm is ideally valid means that it deserves the assent of all those
affected because it regulates problems of action in their common interest. That a
norm is de facto established means by contrast that the validity claim with which
it appears is recognized by those affected, and this intersubjective recognition
grounds the social force or currency of the norm” (1984, pp. 88-89).
Arrington and Francis (1989) distinguish between accountability and control in a way that
differentiates valid from de facto norms of accounting.
14. By referring to pluralism here we are not suggesting that the classical pluralist model of
democracy is descriptively valid; but, rather that, within the space permitted by the often
repressive structures that are in place, there are contests for money, power and status that
exhibit many of the characteristics of pluralist competition.
15. We are playing a bit loose here with Habermas’ conception of truthfulness. We refer the
reader to him for evaluation. In our view, accounting is very much “speaking for” the
individual subject (see Arrington & Francis, 1989). Thus when Habermas construes truthful-
ness as an attribute of self-presentation we are comfortable in viewing accounting as a form
of self-presentation. This adds another layer of contestability problematics-while Habermas
confronts the problematics of a subject speaking for herself (complex enough), we double
those problematics by assuming that accounting displaces the subject from her own speech
and thereby creates rights for the subject herself to contest accounting. John Roberts’ (1988)
essay can be helpful here; so can the notion of a “double hermeneutic” in the social sciences
(see Giddens, 1976, p. 158).
16. This is a paraphrase of Habermas’ frequent use of the notion of an Ideal Speech Community
(see particularly Chapter 1 of Communication and the Evolution of Society). Our paraphrase
is taken from the work of Alexy (1978, pp. 40-41) as translated in White (1988, p. 56). In The
Theory of Communicative Action, Habermas, to our knowledge, drops the terminology “Ideal
Speech Community” but retains the normative force of the strictures presented here (see also
Thompson, 1983).
17. It is quite important to understand Habermas’ model as a theoretical model, one that provides
critical possibilities for reflection on actual social practices rather than one which seeks to
engineer the social space according to its own dicta. One of the constraining aspects of
critical accounting theory is what we perceive as a tendency to subordinate critical reason to
the question of presumed “application”. A model like Habermas’ is a critical resource for
reflection, not a blueprint for action. We are a bit suspicious of how some of the accounting
work with Habermas confuses the question of critical reflection with the question of
application.
18. Thus information asymmetry between management and outside parties, as depicted in
financial theory, is itself a system of differential power because management controls the
agenda of information transmission. The concepts of ideology as they are variously defined
by Marx, Althusser and Mannheim (for example) are soecial cases of this differential Dower
structure.
19. We want to point out here that much of Habermas’ Theory of Communicative Action; indeed,
most of it, is devoted to working out the complex problematics of retaining a positive sense of
the relation between communication as we have outlined it here and the imperative of social
systems that routinely bypass communication. This is the strength of Habermas as a social
theorist. He does not give in to the temptation to opt for a strictly hermeneutic or a strictly
systems-theoretic theory of society. No one, to our knowledge, has taken on such a task
56 C!. E. Anington and A. G. Busty
before and dealt with it as rigorously and systematically as Habermas. In our view, this is the
primary reason he has become so very controversial-he grapples with both sets of problems
and thereby raises the suspicions of those who take the more comfortable route of granting
priority to one or the other. In this essay, we have ignored the systems side of Habermas’
work.
20. As Miller and O’Leary (1987) point out, it is the “wide range” or the “reach” of accounting
that makes it preferable to other ways of coordinating action (e.g., engineering). Accounting-
because of its abstraction of phenomena into the terms of money can escape the bounds of
physical coefficients that constrain engineering. In this way, for example, accounting can be
used to “evaluate” the performance of the C.E,O.-which has no physical referent-as well as
the lowly labourer. Much of the power of accounting inside organizations derives from its
capacity to reach beyond the constraints of physis, and Miller and O’Leary describe the
empirical triumph of accounting over industrial engineering in precisely these terms.
21. These studies are very different in other ways.
22. Habermas’ relative silence about substantive issues of public policy can be understood in
terms of his model. That model sets out the formal pragmatic conditions for public discourse
and preserves the space of substantive claims for the citizenry, not for the theorist.
23, We note also the problem of deciding the practical boundaries of “society’‘-for although it
clearly cannot be restricted to the nation-state, the difficulties of operationalization of
communicative competence on a global scale are massive. That is wby it is important, as
mentioned earlier, to keep in mind that Habermas is developing critical rational principles
rather than practical hypotheses.
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