Globalization as a socio-environmental equilibrium: applying Luhmann`s theory to Integrated Reporting

Department of Statistics, Accounting and Audit, Faculty of Economics, Saint-Petersburg State University, Chaikovskogo street 62, Saint-Petersburg, Russia

Abstract

International accounting standards systems are able to define borders by producing reference codes for institutional, informational and cultural codes. Such ways of influence are similar to globalization in other societal spaces: for example internalization of trade systems has been produced by creating institutes and organizations as well as miscellaneous standards. These tendencies have been highlighted by Niklas Luhmann through differentiation of borders determinants of a system. And this operational determination of globalization as continual creation of the world system is to be highly appreciated for comprehensive analysis of the last developments in accounting and reporting field influenced by environmental issues. In this paper three-tier classification of globalization in terms of system definition proposed as development of Niklas Luhmann ideas. Through analysis of the mean shifts in reporting as social memory phenomenon and communication process accounting problems reformulated as world system`s issues and demonstrated existence of globalization as operational phenomenon for accountancy and social responsibility systems. Concepts of the social systems theory have been visualized and interpreted to determine possible ways of equilibrium states for human systems and environment. As a result main ways for integrated reporting application and its future development formulated.