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Issue 5(1), October 2010 -- Paper Abstracts

Girard  (p. 9-22)

Cooper (p. 23-32)

Kunz-Osborne (p. 33-41)

Coulmas-Law (p.42-46)

Stasio (p. 47-56)

Albert-Valette-Florence (p.57-63)

Zhang-Rauch (p. 64-70)

Alam-Yasin (p. 71-78)

Mattare-Monahan-Shah (p. 79-94)

Nonis-Hudson-Hunt (p. 95-106)

JOURNAL OF ACCOUNTING AND FINANCE

Using Business Process and Operations Management Concepts to Improve

Transparency and to Protect Stakeholder Interest

Author(s): Germaine H. Saad, Ralph H. Greenberg, Penelope Sue Greenberg

Citation: Germaine H. Saad, Ralph H. Greenberg, Penelope Sue Greenberg, (2012) "Using Business Process and Operations Management Concepts to Improve

Transparency and to Protect Stakeholder Interest," Vol. 12, Iss. 1, pp. 11 - 19

Article Type: Research paper

Publisher: North American Business Press

Abstract:

Is Sarbanes-Oxley enough to protect the interests of all stakeholders? Will the Enhanced Business

Reporting Framework lead to relevant and reliable reporting? Recent initiatives to increase the relevance

and reliability of published financial statements have focused on the needs of equity stakeholders

(investors and creditors). Non-equity stakeholders (suppliers, employees, customers and the public)

continue to be ignored by these initiatives. Here we argue that incorporation of business process

management (BPM) and operations management (OPM) concepts into published reports will address the

needs of non-equity stakeholders, as well as better addressing the needs of equity stakeholders. BPM and

OPM provide visibility into operations, and more importantly, into managerial decision making. BPM

and OPM systems gather information that can significantly benefit users of published reports by

increasing the reliability and relevance of those reports. The transaction processing that leads to the

current financial statements is often at the lowest level of the organization. It shows the results of multiple

decisions, but does not reveal the actual decisions or the risk environment in which they were made. In a

sense, current financial statements focus on a narrow set of the outcomes of business processes with little

or no information about the processes leading to the outcomes. For business reporting to be relevant, it

needs to provide information about the decision-making processes and environment. It also needs to

provide leading indicators rather than just lagging indicators in order for users to assess the

organization’s viability in today’s volatile markets.