Abstract
Marking the centenary of the Australian Red Cross, this interpretive and historical case study spans the organization’s beginning in 1914 through to the present day. The overarching purpose is to reveal how one of Australia’s oldest and most important humanitarian organizations used accounting and related information in the discharge of accountability. More specifically, this longitudinal study examines the organization’s annual reporting practices over the course of a century, with particular focus on the emotive disclosures contained in the reports. A political economy of accounting theoretical framework guides the content analysis and the interpretation of the findings. The annual reports were found to be responsive to the changing institutional, social, economic and political environment and evidence the organization’s reliance upon emotive disclosures to discharge a broad scope accountability and build public trust and approbation.
Keywords
Introduction
The year 2014 marked the centenary of the Australian Red Cross, coinciding with the 100th anniversary of the beginning of World War I (WWI). This juxtaposition of beginnings would precipitate an emphasis on emotive disclosures by the organization, as it sought to win public trust and approbation by focusing its organizational reporting on information that would render an emotive, sentimental or moving response. With its mandate derived from the Geneva Convention of 1906 (Australian Red Cross, Annual Report, 1915: 20), the Australian Red Cross was born amidst bloodshed and loss of life and, still to this day, has been unable to disassociate itself from the ravages of war, disasters and emergencies. While established to ameliorate the effects of such tragedies, paradoxically they also represent the lifeblood of the organization.
Calls for increased case studies of organizational accounting practice are longstanding and frequent (see, for example, Broadbent and Guthrie, 2008; Hopwood, 1977; Parker, 1999). This signals the importance and relevance of the present study, which has an explicit accounting focus and is set within the International Nongovernmental Development Organizations (INGDOs) sector. The contribution of this study is distinctive not only for the context and period covered, but also for the significant institutional setting – encompassing deep social, economic, political and cultural changes. Included in these changes is the still evolving role of INGDOs themselves as, around the globe, third sector entities (comprising non-governmental organizations and other not-for-profit organizations) have increasingly taken over the role of the state in providing essential services to society (Boli and Thomas, 1999). Within this context, humanitarian organizations have been subject to demands for greater accountability (Everett and Friesen, 2010: 469; also see Koppell, 2005). However, “despite the widespread acceptance that charities have a duty to discharge accountability to their stakeholders, there is limited knowledge of their information needs and whether the information currently being disclosed fulfils them” (Connolly and Hyndman, 2013: 947). This interpretive and historical case study (Carnegie and Napier, 1996; Yin, 2009) seeks to extend understanding of how annual reports – as primary sources of accounting information and other accountability disclosures – are utilized by humanitarian organizations as they attempt to fulfil this duty.
The study is based on a content analysis of the annual reports of the Australian Red Cross and is undertaken within a political economy of accounting framework (see for example Cooper and Sherer, 1984; Tinker, 1980; Tinker and Neimark, 1987). Specifically, the express objective of the study is to examine, on a longitudinal basis, the annual reports of the Australian Red Cross and to explore the organization’s use of emotive disclosures within these reports to build public trust and approbation. The Australian Red Cross has an express mission to prevent or reduce human suffering, wherever it is found, but it is anticipated that a diverse range of other factors will have a bearing on the content of its annual reports. In particular, and following the work of Gray, Bebbington and Collison (2006) and O’Dwyer and Unerman (2007), it is expected that the accountability regimes observed at the Australian Red Cross will adapt to the environmental context, including disclosures that render an emotive, sentimental or moving response.
The remainder of the paper is structured as follows. The next section reviews the literature on humanitarian accountability and this is followed, in the third section, by a discussion of the political economy of accounting framework. The fourth section then contextualizes the case within the broader social, political and economic environment and identifies the temporal phases into which the study is segmented. This section also introduces the case entity of the Australian Red Cross. The fifth section discusses and defends thematic content analysis as the research method adopted, leading to the descriptive narrative based on the phases previously defined. The penultimate section discusses and analyses the findings and this is followed by summarizing comments in the concluding section.
Perspectives on accountability
Humanitarian accountability
Humanitarian organizations and their missions are often built upon notions of trust, responsibility, truth and justice (Everett and Friesen, 2010: 482) and offer alternative insights into what some see as the moral or socializing side of accountability (Gray et al., 2006; McKernan, 2012; O’Dwyer and Unerman, 2007; Shearer, 2002). That is, these organizations take on board a mantle of accountability premised on an abiding concern and moral obligation (McKernan, 2012: 259) towards those they seek to assist in the event of wars, disasters and suffering (Everett and Friesen, 2010). In spite of this altruistic intent, donors to such organizations are increasingly requesting more detailed information (Cordery and Baskerville, 2011; Davis, 2007; Everett and Friesen, 2010), resulting in an enhanced focus on procedural and technical forms of accountability (Abraham, 2007; Davidson, 2007; Kurunmaki and Miller, 2006). Žižek (2007) found that humanitarian organizations have been somewhat remiss in advocating on behalf of those they purport to represent. Instead, they have often been held to a politically neutral stance (Kirby, 2006). Following Žižek (2007), Everett and Friesen (2010) examined the role of linguistic dualisms in accounting, namely technical/moral accountability and neutrality/advocacy. They found that humanitarian organizations are required to eschew broader, world polity changing and socially transforming accountability for a more technically based, donor and government focused approach, which mitigates their capacity to engage in political transformation.
Within this context, accounting is viewed as a complex force for economic transformation at the organizational, state and global level and is impacted by the political, social, economic and institutional environment within which it functions (Ligouri and Steccolini, 2011). Concerns over accountability have not dissipated over time. In a manner similar to Gambling’s (1977) analysis of the corporate sector, Everett and Friesen (2010) have suggested that in the pursuit of efficiency, humanitarian organizations have become obsessed with accountability, albeit a form that is unable to take into consideration heuristic functions such as morals, values and motives (Ahrens, 1996; Shearer, 2002). Kamuf (2007: 252) superimposes yet another level of complexity, revealing the irony surrounding the misconception that calculative (objective, evidence-based) accountability is superior to narrative (personal, subjective) accountability. Instead, both forms of accountability are not only necessary, but are also both intrinsically “intangible” and “faith based”, and “put to the test our thinking of belief and faith, testimony and proof, calculation and the incalculable” (Kamuf, 2007: 263). This supports Sinclair’s (1995) claim that efforts to enhance accountability should reside in personal experience – as the nature of accountability needs to be adaptive to the organizations and individuals (in fact, all stakeholders) that it purports to serve.
In the aftermath of Hurricane Katrina – one of the most deadly and costly disasters inflicted on the United States – Baker (2014: 11–12) suggested a theoretical solution to the accountability dilemma that resides in the concepts of trust, responsibility, truth and justice. This involves the practical application of a “moral accountability that seeks to avoid the loss of human lives” (Baker, 2014: 12) and rests in a genuine “responsible caring for the other” (McKernan, 2012: 181). A form of accountability that is personally experienced (Sinclair, 1995: 234) and ensures “calculative accountability” does not override the moral necessity of “narrative accountability”, which deals with “subjective feelings” in contrast to hard objective evidence (McKernan and McPhail, 2012: 120; also see Kamuf, 2007).
Emotive disclosures and accountability
Organizational management’s use of annual report disclosures to mitigate accountability responsibilities is long standing and frequent (Buhr, 1998; Guthrie and Parker, 1990; Neimark, 1983; Tinker, 1980; Tinker and Neimark, 1987). Similar concerns persist in the charities sector, amidst the contested “relevance to donors of charity annual reports, even though these are identified as being primarily addressed to such stakeholders … suggest[ing] a charity sector where accountability is not discharged in the most effective manner” (Connolly and Hyndman, 2013: 961). It is within this context that the concept of emotive disclosures is presented as a means by which the Australian Red Cross attempted to discharge, but also shape, its accountability responsibilities. In doing so, the Australian Red Cross focused on disclosures that would be likely to evoke an emotional, sentimental or moving response (Baker, 2014; McKernan, 2012; Sinclair, 1995) among the various stakeholders to whom the organization accounts.
This notion of emotive disclosures is subsumed within capitalism’s historic focus on discharging accountability to those who provide resources – an emphasis that has been carried over to the not-for-profit sector (Connolly and Hyndmann, 2013: 949). While the rhetoric permeating much of the dialogue, legislation and reporting on accountability often suggests the need to embrace a broader range of stakeholders and accountability frameworks, this is often problematic in substance (see, for example, Everett and Friesen, 2010; Gray et al., 2006; Quattrone, 2004; Tinker, 2004). Similarly, the realities of organizational functioning for entities, such as the Australian Red Cross, that reside outside the traditional public and private sectors create distractions from pursuing accountability mechanisms that enable a more efficient use of resources (Gray et al., 2006). Ironically, this is often due to problems created by demands for an increased focus on accountability (see for example Munro and Hatherly, 1993; Roberts, 1991; Strathern, 2000). These distractions can create dependencies (Everett and Friesen, 2010), and in some cases accountability pathologies (Kopell, 2005), in organizations and inevitably lead to accountability being “constructed around an untenable and destructive split of ethical and strategic concerns to the detriment of both” (Roberts, 1991: 355).
The forms and shades of accountability effectively forced on organizations are diverse and complex (Cavill and Sohail, 2007; Sinclair, 1995), and a “constant struggle for resources within the (third) sector means powerful and legitimate stakeholders will continue to receive the most attention” (Cordery and Baskerville, 2011: 212). As a consequence, through efforts to address issues of trust, responsibility, truth and justice, accountability has sometimes – and paradoxically – emasculated organizations (Gray et al., 2006), although there are those who would see accountability “premised more on charity and trust than cynicism and fear” (Everett and Friesen, 2010: 483). These are significant concerns, as accountability may actually weaken moral obligations (see Munro and Hatherly, 1993; Roberts, 1991). Gray et al. (2006) lament the overt focus on accountability’s technical, procedural and hierarchical side at the expense of moral or socializing forms of accountability (also see Andrew, 2006; Lehman, 2007). Although the Australian Red Cross brings life to situations where there is death, it is suggested that its disclosures – often intrinsically premised in emotions – reside more in the latter than the former.
This concept of moral accountability based on personal disclosures that render an emotive response is not new (see Roberts, 1991; Sinclair, 1995: 234), and uncertainties regarding the subjective nature of accountability are even older. Marshall (1914: 491), for example, attested at the beginning of the twentieth century that “accountability varies greatly with the circumstances under which [it] was incurred”. Within this setting, accountability is no longer viewed as an objective, impersonal concept, removed from those individuals and institutions that it serves (Baker, 2014; McKernan and McPhail, 2012). Instead, accountability is seen as taking on yet another form (Sinclair, 1995) in adapting to its economic and socio-political environment (Marshall, 1914) – the overarching framework within which it functions in this case tempered by conditions of war, disasters and emergencies. It is within this context that the annual reports of the Australian Red Cross, generally regarded as one of the most influential non-governmental organizations within the Australian development and humanitarian field, are examined to provide insights into the nature and development of the organization and the manner in which it discharged accountability to various stakeholders, particularly through its use of emotive disclosures.
Theoretical framework
The political economy framework has its origins with the German philosopher and social theorist Karl Marx, with Tinker (1980) being the first to apply the concept to accounting in an attempt to explain the controversies, inequalities and injustices associated with accounting as an instrument of social and institutional practice (Hopwood, 1983). In adopting a political economy of accounting (PEA) framework, accounting is seen as an instrument of both stability and change – maintaining, influencing and legitimizing the social, economic and political arrangements in line with those who hold sway and power in society (Cooper, 1980; Cooper and Sherer, 1984; Guthrie and Parker, 1990; Tinker, 1980; Tinker and Neimark, 1987).
When investigating the content of annual reports under a PEA framework, the social, political, economic and institutional environments must be fully considered. Organizations are seen to deliberately and proactively utilize annual reports in order to entrench economic power and dominance over a diverse range of stakeholders (Burchell et al., 1980; Guthrie and Parker, 1990). In particular, PEA may provide insights into the development of annual reports as an accountability change agent – influencing the perception of an organization by the various stakeholders (Buhr, 1998; Guthrie and Parker, 1990; Potter, 2005).
These general insights into the nature of the accountability mechanisms may enable critique of a particular entity’s ability to discharge its accountability (Cooper, 1980; Cooper and Sherer, 1984; Robinson, 1961; Sraffa, 1960; Tinker, 1980). Analysis of the role and function of annual reports under a PEA framework provides an opportunity to ascertain the extent to which those reports may be affected by the wider environmental context, in the process reflecting what is deemed important in society (Cooper, 1980; Cooper and Sherer, 1984; Tinker, 1980; Tinker and Neimark, 1987). As Neimark (1992: 100) observes: “in preparing an annual report a company makes choices about the issues and social relationships that they consider sufficiently important or problematic to address publicly”.
Context
Temporal phases grounded in the wider social, political and economic context
Many studies have attested to the impact of the wider environmental context on the content of annual reports, whereby private interests may be legitimized in favour of the extant social, economic and political arrangements (see, for example, Buhr, 1998; Cooper and Sherer, 1984; Guthrie and Parker, 1990; Potter, 2005; Tinker and Neimark, 1987). This study adopts a periodization analysis (Tinker and Neimark, 1987), separating the eras on the basis of the occurrence of a new impediment (Hoogvelt and Tinker, 1978) to the existing political, social, cultural and economic environment within which the subject institution functions (Moreno and Camara, 2014). The environment within which the Australian Red Cross functions has experienced significant transitions, from states of extreme international conflict to times of relative international harmony and peace. Analysing the significant environmental changes experienced makes it possible to identify different contexts or stages, an aspect of particular importance in a study of this duration. This resulted in the identification of seven distinct phases (as summarized in Table 1) by which to analyse whether changes in the wider environmental context induced modifications in the content of the Australian Red Cross’s annual reports (Meyer 1986; Moreno and Camara, 2014; Tinker and Neimark, 1987).
Phases used for the study.
Source: Authors’ compilation.
Given the significance of WWI in the formation and existence of the Australian Red Cross, it is appropriate to mark the end of the first phase (1914–1920) with the immediate aftermath of the War (Australian Red Cross, Annual Report, 1918: 20). The inter-war period (1920–1939) provides the next significant phase, as the Australian Red Cross attempted to establish itself as a legitimate peacetime organization. World War II (WWII) (1939–1945) saw the Australian Red Cross come of age, solidifying itself as a national institution with significant ongoing political and social support. The initial post-war phase, 1945–1964, is identified as a period encompassing significant economic growth and political stability within Australia. This is followed by two decades, 1964–1984, during which Australia, and many other parts of the world, experienced a period of political uncertainty, economic instability, inflation and social change. While the Australian Red Cross continued to enjoy a strong public and political profile during this period, it was also presented with significant challenges as it transitioned to a greater emphasis on the international movement’s global activities while balancing the need to remain relevant locally. The international development phase (1984–2000) was also a period of growth, challenges and reforms, and witnessed the arrival of New Public Management (NPM) – as a strategy for enhancing the efficiency of public organizations – as the Australian Red Cross came to terms with the increasingly competitive nature of the international development and humanitarian aid sector. The final demarcation point for this study extends from the turn of the century to the recent past (2000–2014). This period of economic growth, prosperity and success for Australia marked a time of transition, reform and change for the Australian Red Cross that would enable the organization to continue to play an important role in the third sector within the more competitive environment that emerged at the turn of the century (International Federation of Red Cross and Red Crescent Societies, 2013: 4).
The Australian Red Cross
The Australian Red Cross was founded in 1914, nine days after the commencement of WWI, by Lady Helen Munro Ferguson as part of the International Red Cross and Red Crescent (IRCRC) Movement – the world’s largest international humanitarian organization, which dates back to 1863. On 13 August 2014, the Australian Red Cross marked its 100-year anniversary. It is an organization that has become entrenched in the Australian political, social and institutional landscape.
From the outset, political, social and cultural factors were an intrinsic part of the Australian Red Cross’s organizational fabric. State Divisions were formed in each of the six states under the guidance of Divisional Presidents, who were also the wives of State Governors. Politically connected and socially active, the Australian Red Cross grew rapidly through an extensive network of rural and metropolitan branches, to the extent where few Australian communities were left out. Following the cessation of hostilities at the end of the WWI phase (1914–1920), the Australian Red Cross continued to mobilize volunteers, playing a significant role in Australia’s political and social landscape throughout the inter-war phase (1920–1939), providing much-needed services beyond the scope of its original mandate. Accepted by the community from the outset, due to the politically connected leadership and galvanizing social impact of war, by the end of the WWII phase (1939–1945), the Australian Red Cross had become Australia’s largest charity, with nearly half a million members, 1 mostly female, from a total population of around seven million.
In the post-war reconstruction and regeneration phase (1945–1964), the Australian Red Cross successfully refocused the organization on social welfare, national emergencies, natural disasters, the blood bank and first aid programmes, although the organization was still generally viewed as a wartime institution (Australian Red Cross, Annual Report, 1964: 2). The global focus – domestic challenges phase (1964–1984) witnessed a significant jump in the number of national Red Cross and Red Crescent organizations. On the back of this, the Australian Red Cross continued to enjoy a high profile domestically as it transitioned towards an international focus.
The International development phase (1984–2000) saw Australian Red Cross struggling to come to terms with the more competitive nature of the international development and humanitarian aid sector, having previously relied on its entrenched political standing and favourable public profile (International Federation of Red Cross and Red Crescent Societies, 2013: 6). Towards the end of the century, a sense of urgency developed around the need to develop ongoing income streams and rationalize the cost of administration. Early in the sector reforms phase (2000–2014), this led to the National Society aligning under a single organizational strategy. In essence, this involved the state and territory divisions relinquishing their autonomy and independence.
The present day Australian Red Cross is a leading humanitarian organization within Australia that works towards making vulnerable people safer and more resilient through the delivery of services and the promotion of humanitarian laws and values (International Federation of Red Cross and Red Crescent Societies, 2013: 4). With an annual turnover of more than AUD$400 million (2012–2013), the Australian Red Cross is one of the largest INGDOs in Australia, with 680 branches, 18,500 members, 35,000 volunteers and 3,500 staff (Australian Red Cross, Annual Report, 2013; International Federation of Red Cross and Red Crescent Societies, 2013). Although impressive on many fronts, the Australian Red Cross has experienced significant political, social, economic and institutional stresses from the environment in which it functions – the significant decline in membership from almost half a million members following WWII being reflective of its changing circumstances.
The Australian Red Cross is a member of the IRCRC Movement, which has over 97 million members, volunteers and staff operating in over 188 countries. The three components of the IRCRC Movement are the International Committee of the Red Cross (ICRC), 188 National Red and Cross Red Crescent Societies, and the International Federation of Red Cross and Red Crescent Societies (IFRC).
Methodology
Calls for more case studies of organizational accounting practice are widespread and longstanding (see, for example, Broadbent and Guthrie, 2008; Burchell et al., 1980; Hopper and Powell, 1985; Hopwood, 1977, 1983; Otley and Berry, 1994; Parker, 1999; Scapens, 1990; Smith 2006). Across a similar timeframe, there has been a move away from traditional forms of accounting history to a “new accounting history” that adopts a more contextual view of the world. This takes into consideration a range of social, cultural, political and technological factors, in contrast to the neo-classical economic view of accounting generally held by “traditional accounting historians” (see for example Carnegie and Napier, 1996, 2002, 2012; Gaffikin, 2011; Hopwood, 1983; Miller et al., 1991; West, 1996).
Content analysis can be useful for ascertaining themes, describing trends and determining the impact of the wider social, economic and political environment on organizational documents (Berelson, 1971). The method rests on the belief that it is possible to go behind the text and infer valid underlying meanings (Smith, 2006; Weber, 1990). From this perspective, it is argued that content analysis approaches that restrict themselves to a literal interpretation alone are of limited value as the receiver (stakeholder) infers meaning and context. Salanick and Meindl (1984) note that whether these are the “true” beliefs of the author is irrelevant. Weber (1990: 62) emphasizes that content analysis is part science, part art and as such depends on the judgment and interpretation of the investigator: “Texts do not speak for themselves … the investigator must do the speaking and the language of that speech is the language of theory”. Weber (1990: 80) suggests that in assigning rich, insightful meaning to complex, abstract phenomena, researcher bias cannot be avoided.
The documentary sources that form the basis of this study comprise a complete set of annual reports (1915–2014) covering the first one hundred years of the Australian Red Cross. These documents were sourced primarily from the Archive of the Australian Red Cross, in Melbourne. 2 The annual reports of the Australian Red Cross were first explored in a non-critical manner to ascertain the structure, key themes, sub-themes and emerging topics. Emerging themes and topics were then refined, taking into account the theoretical literature on content analysis (Holsti, 1969; Krippendorf, 1980; Weber, 1990) and existing empirical research (Jones and Shoemaker, 1994). The secondary phase involved reviewing the entire set of annual reports, with specific reports examined in more detail where significant deletions, additions or other amendments were identified, in order to ascertain how the themes in the annual reports changed over the period under investigation (Suddaby et al., 2009).
The study is based on a detailed analysis in a specific context, which may limit its wider applicability and generalizability. Historical subjectivity is a second research limitation: whether philosophical or historical, observations are contingent upon the perceptions held before entering the discourse (Carnegie and Napier, 1996; Fleishman et al., 1996). While this subjectivity cannot be avoided, it should be acknowledged when undertaking historical research. Consequently, this study recognizes these inherent limitations and adopts a perspective that views the world as being socially constructed and subjective (Chua, 1986).
Descriptive narrative
WWI (1914–1920)
The Australian Red Cross – conceived amidst war, disaster and emergency – established a purpose and approach to institutional life that was deliberate and measured, engaging quickly in the political and social environment of a young nation as it went to the assistance of its parent nation, England. The first annual report of the Australian Branch of the British Red Cross Society, as the organization was then known, was 68 pages in length and clearly detailed the organization’s structure and political connections. Council members included the wife of the Prime Minister and wife of the Minister for Defence, with organizational links to the British Royal Family also documented (Australian Red Cross, Annual Report, 1915: 5, 6, 8). At the end of the formal content of the annual report, signed off by the President, eight pages are dedicated to the Finance Committee. This section outlines the activities at the Headquarters Depot at Federal Government House in Melbourne, which held stores and provisions to be shipped overseas. This includes a two-page “Statement of Account of Moneys dealt with by the Honorary Treasurer of the Australian Branch” for the year ended 7 August 1915, details of the organization’s constitution, and a “List of Articles” over two pages that itemizes the stores held. The remainder of the annual report, some 45 pages, consists of State Division reports. Whereas the first annual report appeared to focus on reporting organizational structures and the political, social and institutional networks required for the Australian Branch to function, the second annual report was preoccupied with reporting on and accounting for the activities of the Australian Red Cross in assisting the wounded and those in need. It did so in minute detail, even reporting that the newly formed organization had taken over the supply of cigarettes and tobacco from the Australian War Contingent Association (Australian Red Cross, Annual Report, 1916: 13). Reflecting this increased detail, the annual report expanded in size by almost 60 per cent to over 100 pages and included transcripts of letters from wounded soldiers and an additional financial report outlining “Expenditure Overseas”. A section within the annual report entitled “Prisoners of War” provided a detailed account of the delivery of supplies to POWs, reporting that “there is ample evidence from the thousands of replies received from prisoners … that the supplies in about 98 per cent of cases reach their destination regularly and in good condition”. It was even reported that “the bread baked in Berne reaches the prisoners in much better condition, at any rate in the summer, than that baked in England” (Australian Red Cross, Annual Report, 1916: 18).
The content of this report, along with others from this period, provides detailed information on the use of funds, such as reports outlining the contents of packages sent to all POWs in Germany from the London depot – including 100 Virginian cigarettes (fortnightly) and one packet of lemonade powder, amongst many other items. The full horrors of war were, for the most part, supressed in the annual reports, other than for the ubiquitous accounting for supplies such as artificial limbs, “which are of the most modern and approved types … [with] over £2000 expended on these purposes” (Australian Red Cross, Annual Report, 1916: 39).
The annual report of 1918 continued to promote enthusiastically the importance of the Red Cross within Australia, reporting that “statistics show that whether measured by membership, subscriptions or output of work, the period under review has been one of continued expansion and extended usefulness” (Australian Red Cross, Annual Report, 1918: 5). However, in the final words of the report, the President, Lady Helen Munro Ferguson, foresaw the demise of the organization at the end of hostilities, encouraging continued support only “until all need for Red Cross activity is over” (Australian Red Cross, Annual Report, 1918: 20).
The end of the war saw the largest annual report to date at 129 pages, although paradoxically this also coincided with “one of gradually diminishing responsibilities, during which several Red Cross Departments were finally closed” (Australian Red Cross, Annual Report, 1919: 5). The conclusion to this first post-war report saw a significant change in the language of the National President, who now stated: “a powerful organization has been created, ready at any moment to renew its war activities, and be able in days of peace to play a useful part in relieving suffering and promoting national health” (Australian Red Cross, Annual Report, 1919: 26, emphasis added).
Inter-war period (1920–1939)
Peacetime would bring with it many challenges and changes for the Australian Red Cross as the focus now turned to establishing a successful peacetime organization. This transition, however, would not be achieved easily. The new President expressed her hope “for an even better result when the sleep of war-weariness has passed … to enable us to successfully face the problems of peace, as it was to support us through the strain and struggle of war” (Australian Red Cross, Annual Report, 1921: 11).
Throughout the following years, in addition to reporting on the general activities and financial performance of the organization, there would be a sustained effort to legitimize and “justify its continued existence as an indispensable organisation” (Australian Red Cross, Annual Report, 1924: 13). However, in seeking this justification there was still significant recourse to reporting war-related matters, such as accounting for the “care and comfort of those ex-service men who are still suffering from wounds, sickness or distress” (Australian Red Cross, Annual Report, 1924: 13).
In purely financial terms, the Australian Red Cross’s continued existence was not assured, with the organization now operating on a shoe-string budget that was less than 10 per cent of that during the peak of war. The 1918 annual report accounted for a disbursement of £483,464, compared to just £43,078 in 1924. Activity would remain around this level until the end of the following decade, when the world would again be at war.
While the organization’s activities, as measured by income and expenditure, shrank dramatically in the post-war era, the annual reports increased in size and eventually peaked at 171 pages in 1935 (the longest annual report in the organization’s history). However, on the threshold of WWII in 1938, the number of pages fell by nearly 50 per cent; seemingly signalling the organization’s belief that it would be less reliant upon its annual reports to evidence its worth.
Throughout the inter-war period, the Australian Red Cross attempted to highlight the importance of its peacetime operations, with a section entitled “Peace Activities” being introduced in 1924. This reflected concern that “some members of the Society have not grasped the fact that the Australian Red Cross constitution now includes the improvement of health, the prevention of disease, and the mitigation of suffering in Australia and elsewhere (Australian Red Cross, Annual Report, 1927: 11). However, there were aspects of the Red Cross’s operations reported on and accounted for throughout this period that still held a direct link to the war, including Red Cross and General Hospitals, Limbless Soldiers and Blinded Soldiers.
By the start of the next period, which would witness the most devastating conflict known to humanity, all formal references to “Peace Activities” within the annual reports ceased.
WWII (1939–1945)
The arrival of WWII on 1 September 1939 would mark a significant phase in the life of the Australian Red Cross. From an organizational perspective, the content of the annual reports also adapted and transformed quickly. Nowhere was this more notable than in the “Adopt a Prisoner of War Appeal” that commenced in 1941 and enabled any citizen to adopt a prisoner of war by contributing £1 a week. The annual report noted:
It is not possible to allot to each contributor a particular prisoner, but whoever helps the scheme knows that his or her parcel reaches some prisoner and is helping a splendid cause. However, the Society hopes soon to be able to supply each donor with the name and address of a prisoner to whom regular letters may be sent. (Australian Red Cross, Annual Report, 1941: 28)
Throughout this period, the underlying focus of the annual reports is directed towards galvanizing the Australian public behind the mission of the Red Cross. The Treasurer, JH Roxburgh, (1933–1944) responded to public opinion that “the job had been done” by reiterating that this was clearly not the case and stressing the significant number of POWs still held in Japanese occupied territory. The Treasurer reassured the Australian public that when the Red Cross was in a position to respond “everything possible will be done, irrespective of cost [which] will naturally involve outgoings on a basis which is immeasurable” (Australian Red Cross, Annual Report, 1940: 50).
These financial concerns expressed by the Treasurer would become a harsh reality as the Australian Red Cross struggled to support its operations in the post-war period. The mandate claimed by the organization – to spare no costs in the pursuit of its mission – was reinforced in the Report of National Council in the 1944 annual report and in the comments of The Hon. RS Richards at the Twenty-Ninth Annual General Meeting: “the people of Australia sometimes complain … of the drain in financing the Red Cross … [but] when we remember [in] the last war the number of wounded was over 10 million this is not time to say we cannot carry on because the task is too great” (Australian Red Cross, Annual Report, 1944: 11).
Post-war reconstruction and regeneration (1945–1964)
The post-war period was one of uncertainty amidst hope and would mark a new era for the Australian Red Cross as it sought to remain relevant and establish a permanent place in the Australian institutional landscape. However, with the difficulties of organizational legitimacy encountered following WWI still fresh in mind, the leadership was keen to take advantage of the opportunities in the post-war era that would see Australia as a nation state exert considerable economic, political and social prominence within the international arena. Planning for this began immediately, and at the inaugural meeting of the National Publicity Committee on 26 September 1944, the Committee resolved that a:
[n]ation-wide campaign of educational propaganda should be undertaken by National Headquarters due to the post-war problem of maintaining interest in the Society … [A]s fund raising in the post-war years would be much more difficult than under the emotional impetus of war, every effort should be made to use the strongest types of appeals through the strongest media available. (Australian Red Cross, Annual Report, 1945: 38, emphases added)
Clearly, and as reported in the Publicity section of the 1945 annual report, the survival of the organization would not be left to chance. The Committee further recommended the use of “paid propaganda” in two of Australia’s leading women’s publications in the post-war era, the Women’s Weekly and Woman, these having a combined circulation of nearly one million copies a week (Australian Red Cross, Annual Report, 1945: 38). A director of the National Executive Council, Mr Frank Degenhardt, was also appointed to provide enhanced authority to the Department, and its activities were reported upon with unusually elaborate detail until 1961.
The size of the annual report reduced significantly by the end of the post-war period, falling to 36 pages by 1964, the smallest of any annual report up until that stage and coinciding with the Australian Red Cross’s fiftieth anniversary. This change in size of the annual report accompanied the organization’s ongoing challenges to maintain relevance and legitimacy. The Chairman, Dr Geoffrey Newman-Morris, reported in the final annual report of this period that:
Despite the financial support the Society has received … there are many Australians who continue to regard Red Cross as an organisation which is active enough in war … but in peace consists largely of a well-meaning group of ladies who dispense comfort here and there in the forms of cups of tea … they would do well to look at the facts contained in the annual report and the wide variety of services it describes in furtherance of the Red Cross aim. (Australian Red Cross, Annual Report, 1964: 2)
The Chairman then took his argument for legitimacy a step further, emphasizing the global focus of many recent activities. However, an ongoing struggle for a distinct identity and purpose was also evident in the Chairman’s report, where he noted that “this year ARCS units are making and packing babies’ layettes” (Australian Red Cross, Annual Report, 1964: 3). As important as nappies are, this focus did little to reflect the stated national and international ambitions of the organization.
The focus of the Red Cross’s leadership – and of those associated with the organization who held positions of power and sway within society and government – on the continued existence and relevance of this organization in times devoid of war and hostilities was a persistent theme during the 1947-1964 era. Such pleas, however, were unable to ameliorate the organization’s financial strains. In 1952, the Treasurer resorted to a personal plea, stating that the deficits being incurred could not be sustained. He called for an increase in donations to the Society, “averaging 6d. per person (in Australia) to sustain the Society’s services, surely a small sum compared with the sacrifices of those whose war suffering it is the Society’s first duty to succour” (Australian Red Cross, Annual Report, 1952: 24).
In the final annual report of this phase, the Chairman commented that “the mark which the Society has imprinted on the life of the Australian community during this period is deeper than many of us realise”. He then accounted for the significant sum of over £40 million that had been entrusted to the Red Cross on behalf of the Australian community throughout the first 50 years of the organization (Australian Red Cross, Annual Report 1964: 2).
Global focus – Domestic challenges (1964–1984)
A clear change in direction is evident in the content of the annual reports throughout this phase. As the influence of WWII receded, the Australian Red Cross transitioned towards an international agenda, albeit amidst considerable domestic challenges. References to war within the annual reports, unlike previous periods, became minimal and sporadic and finally concluded in 1972 with the announcement of the withdrawal of the Australian/New Zealand Red Cross Field Force. This was left to an anonymous report of a few small paragraphs under the heading “International assistance”. This was despite the fact that Australia was engaged in a significant – but also controversial – international conflict: the Vietnam War.
Although the annual reports throughout this period do include references to the Red Cross’s involvement in this conflict, the organization appeared reluctant to report on it and instead chose to emphasize its international endeavours. The Chairman, Dr Geoffrey Newman-Morris, reported in the opening annual report of this period that “Australia’s growing interest in the world around her is reflected within Red Cross by an increasing concentration on International Red Cross activities” (Australian Red Cross, Annual Report, 1964: 2–3). This was reinforced a decade later when Newman-Morris was elected as Chairman of the Standing Commission of the International Red Cross.
As the Australian Red Cross continued to look for its purpose and mission offshore, the reduced focus on reporting domestic activities continued. This was no more evident than in 1971, when the Australian Red Cross ceased all formal references to State Divisions. In previous periods up to 90 per cent of the national annual report had been dedicated to the activities of State Divisions. By the end of this phase, the Australian Red Cross would also cease explicitly reporting on a number of other key domestic activities, in favour of a more strategic and controlled approach to report disclosures.
The annual report continued to decrease in size throughout this period, reducing to 18 pages in 1981 – the smallest annual report in the history of the organization and barely 10 per cent of the 171-page annual report of almost half a century earlier in 1935. As if in tune with the reducing size and content of the annual reports – with only four exceeding 30 pages throughout this two-decade long phase – the organization continued to wind back its focus on domestic issues, instead prioritizing overseas endeavours. The Chairman, Noel W Buckley, in the final annual report of this period in 1984, noted that “persons in need of assistance as a result of the world-wide economic recession have had to share the Society’s limited resources with many others needing help as a result of the effect of natural disasters and man-made conflicts” (Australian Red Cross, Annual Report, 1984: 4).
The Australian Red Cross’s activities, as reported on and accounted for in the organization’s annual reports towards the end of this period, revolved around organizational structure, leadership, international engagement and the foundational principles of the international movement (Australian Red Cross, Annual Report, 1983, 1984). This would place the Australian Red Cross in a position to manage more effectively the next phase of institutional life, as the increased prominence of international development would challenge the international standing and legitimacy of the organization as it transitioned into the later part of the century.
International development (1984–2000)
The focus of this phase is suggested by the image on the back page of the opening annual report, depicting a dark skinned, semi-naked small child, aged two or three, placing his hand under water flowing from a rusty tap. By the end of this phase, international development and humanitarian aid would be entrenched as mainstream public and political priorities. Although government entities would outsource much responsibility to non-governmental organizations, the increasingly competitive environment would create a challenging setting in which to reposition and redefine the Australian Red Cross (Australian Red Cross, Annual Report, 2013: 12).
The focus of the annual reports on the Red Cross’s Fundamental Principles 3 throughout this period is unremitting. Humanitarian rights were now viewed by the organization’s leadership as the guiding principle on which all Red Cross action would be based. The organization reported that “encouraging greater knowledge of, and respect for, laws protecting human life – International Humanitarian Law [IHL] – is an important function of the National Dissemination Committee of Red Cross” (Australian Red Cross, Annual Report, 1983: 22). The focus on IHL within the annual reports continues throughout this period, with the final report in 2000 noting that the Australian Red Cross undertakes a wide range of IHL dissemination activities across the country, including seminars, conferences, debates and the creation of IHL units (Australian Red Cross, Annual Report, 2000: 20). A strategic focus by the Australian Red Cross leadership is evident within the annual reports, with the National Dissemination Committee appearing to have a similar function to the previously disbanded National Publicity Department.
At the turn of the century, Australian Red Cross annual reports became more predictable and standardized, with the focus of reporting directed towards the organization’s leadership and structure alongside a mandated focus on global initiatives entrenched within the organization’s Fundamental Principles. The dominance of these aspects is relatively consistent throughout this period, and contradicts what was foreseen in 1981 when the then Chairman, Noel W Buckley, emphasized that the organization’s activities were “devoted towards meeting the needs within Australia of those groups in the community who are disadvantaged in one way or another” (Australian Red Cross, Annual Report, 1981: 1). By the year 2000, almost 50 per cent of the annual report’s contents were devoted to reporting on and accounting for the Red Cross’s activities within the categories of organizational leadership, foundational principles and international engagement.
Throughout this period, the size and content of the annual reports remained relatively stable, with most reports consisting of around 30 pages; although in 1986, one of the smallest reports for the Australian Red Cross was produced, consisting of just 21 pages. However, by the turn of the century the annual reports again started to increase in size, although this time the impetus was an expanded focus on accountability and reporting requirements, as the Red Cross sought to regain the prominent position it once held within Australia.
Sector reforms (2000–2014)
The Australian Red Cross would enter the new millennium unsure of its place within the not-for-profit sector and uncertain of its future (International Federation of Red Cross and Red Crescent Societies, 2013; Oppenheimer, 2014). This precipitated a change in its annual reports, with even more focus given to organizational leadership and corporate governance and a noticeable transition away from the prominence accorded to international development in the preceding period.
In a significant contrast to the humanitarian perspective portrayed throughout the 1980s and 1990s, the images contained in the annual reports in this final phase take on a more personal approach. For example, of the 32 images appearing in the 2004 report, just one depicts destruction: a photo of a mother and son standing amidst collapsed buildings and rubble in the southern Iranian city of Bam. The majority of images reported during this period are of smiling individuals.
Of the 60 pages in the 2013 annual report (not including the full set of financial statements which now comprised a separate document),
4
some 43 pages have images, with most dominating a full page. At the close of a century, the focus of the Australian Red Cross appeared to be on presenting an organization with a “human touch”. Reminiscent of the opening report in the previous International development phase, the closing report of this phase, some three decades later, also depicts an image of a young child, water overflowing from a tap into his cradled hand. However, there is a distinctly different feel to the image – one of appreciation as opposed to desperation. A full-page image and quote from a Red Cross collector also evidences a focus on political neutrality:
It’s a great feeling, knocking on doors for Red Cross Calling. People give willingly, cheerfully, and not just because it’s for a good cause. It’s also because they know Red Cross has no hidden agenda. We’re not tied up with the politics of the day. We’re not here to get on a soapbox. This is money collected from the people, for the people. Pure and simple. (Australian Red Cross, Annual Report, 2004: 19)
Although the executive reports continued to signal the importance of the Australian Red Cross on the world stage, the annual report now emphasized domestic issues, personal engagement and local humanity (Australian Red Cross, Annual Report, 2013). This marked a significant transition in content from the focus on international activities evident throughout the history of the Australian Red Cross, especially as reported on throughout the 1980s and 1990s.
Reflective of these fundamental changes, the 2004 annual report stated that the organization was undergoing “the most comprehensive internal review … ever undertaken in our 90-year history of service to the Australian people” (Australian Red Cross, Annual Report, 2004: 5). As a direct result of this “Change, Growth and Renewal Strategy”, the Australian Red Cross identified the need for the organization to establish increased engagement with the general public. This was to be achieved by prioritizing domestic services, and the consolidation of “organisational governance, structure, strategy, culture and people in a complex and challenging reform process” throughout 2005–2010 and beyond (International Federation of Red Cross and Red Crescent Societies, 2013:6).
By 2010, a separate 16-page governance report was incorporated into the annual reports, which also included ‘A Year in Review’ (essentially a condensed annual report) and Financial Report. This highlighted the priority being given to this aspect of accountability, with significant emphasis placed on profiling members of the National Management team and National Executive, including detailed biographies and profiles, and attendance records at National Executive (Board) meetings. Overall, the attention given in the annual reports to representations of effective governance – presumably in pursuit of enhanced legitimacy – was significantly increased during the last decade covered by this study. The impression created is one of a carefully managed and controlled organization, albeit in a collegial environment; perceptions of the Australian Red Cross being shaped by profiles of volunteers, staff and leaders.
In the course of this final phase, an increased emphasis on partners and supporters became evident and was accorded a separate section in the annual reports from 2003. By 2013 there were 20 pages covering this area (Australian Red Cross, Annual Report, 2013). Membership also attracted renewed attention, as part of an organizational image where involvement is like belonging to a happy family. Thus, this phase is characterized by an attempt to depict the organization as belonging to the people of Australia, an aspect of institutional life the Australian Red Cross had not fully enjoyed since its prominence as a “national institution” in and around the war eras (RG Menzies, quoted in the Australian Red Cross, Annual Report, 1960: 2).
Discussion and analysis
Organizational legitimacy
From the outset, the constitution of the Australian Red Cross – as reported on in the organization’s first annual report – set in motion an institution that was politically connected, socially relevant and economically necessary. WWI had provided the perfect storm as a young nation looked to its parent for guidance. The Australian Society (as it was then known) with its foundational links to the British Monarchy was well poised to countervail the somewhat unexpected ravages of war. The Constitution, consisting of 15 points, unknowingly set in place what would become one of the most influential institutions in the Australian landscape within the settings of war, disasters or emergencies. Point seven of the Constitution (Australian Red Cross, Annual Report, 1915: 20), entrenched the Red Cross within the political environment, outlining that management and control of the Australian Branch of the British Red Cross Society would be vested in a Council which consisted, among other individuals, of the:
President of the Branch (Governor General’s wife);
Presidents of respective Divisions (State Governors’ wives);
Chairman of Divisional Executive Committee;
Wife of the Prime Minister and the wife of the Minister for Defence, who would serve, respectively, as the Hon. Secretary and Hon. Treasurer;
Representatives elected by the Executive Council; and
Members co-opted by the Council.
This established a very well connected and powerful organization, both politically and socially, and ensured that in terms of legitimacy and influence it would be one of the most significant institutions within the third sector. In line with the assertions of Tinker and Neimark (1987: 72–73), the annual reports were utilized as ideological instruments for promoting policies, beliefs, attitudes and practices. The Prime Minister of Australia, Sir Robert Menzies, reported that the Australian Red Cross has been “one of the very good things in an otherwise troubled century … [having] become a national institution” (Australian Red Cross, Annual Report, 1960: 2).
The emotional impetus of war
The Australian Red Cross’s annual reports throughout the WWI (1914–1920) and WWII (1939–1945) phases for the most part account for the organization’s operations in terms of these contexts (Tinker and Neimark, 1987). The impetus of war in rendering an emotive, sentimental or moving response is observed in 1941, when citizens were given the opportunity to “adopt” a prisoner of war by contributing £1 a week. The use of emotive disclosures in this way has since been replicated and institutionalized by many like-minded INGDOs, such as World Vision’s “Child Sponsorship” campaign, which came under considerable scrutiny in relation to the authenticity of children sponsored (Foreign Correspondent, 2008). While World Vision received significant adverse publicity for misleading the public with regard to the identity of sponsored children, the Australian Red Cross appeared to have been more transparent with its reporting, noting that it was not possible to allocate each contributor an individual prisoner. However, the names of prisoners to whom personal correspondence could be sent were provided (Australian Red Cross, Annual Report, 1941: 28). In this way, disclosures are evident that align with Neimark’s observation that in preparing annual reports organizations make choices about political and social issues that they consider sufficiently important (Neimark, 1992: 100). The distressing nature of war pervaded all aspects of Red Cross activities and reporting throughout the War phases.
The influence of the conflict was also evident throughout the inter-war (1920–1939) and post-war (1945–1964) phases, despite the introduction of a section entitled “Peace Activities”. This, however, was hastily removed from the annual report in 1938, just prior to the recommencement of hostilities. The National Publicity Department, with significant influence over the organization’s strategic direction, also reported that fund raising would be much more difficult in the post-war years than under the “emotional impetus of war”, recommending the use of “paid educational propaganda” (Australian Red Cross, Annual Report, 1945: 38, emphasis added).
The focus on accounting for the Red Cross’s operations with reference to conditions of war diminishes rapidly throughout the global focus – domestic challenges phase (1964–1984). The considerable lapse of time since WWII may have had a bearing on this transition, with the emotional impetus of war no longer being a driving factor in the Red Cross obtaining funds (Oppenheimer, 2014: 179). This precipitated a shift in the Australian Red Cross’s organizational strategy, with the social environment significantly affecting the content of annual reports (Tinker and Neimark, 1987). With the Vietnam War being controversial and unpopular among the public, the organization’s management reacted by no longer representing war as the galvanizing social force of previous phases. Now it was seen as divisive at best, and the content of the annual reports and accounting for the Red Cross’s activities transitioned along with the environment. Organizational reporting and context shifted to a focus on global initiatives and international endeavours, in line with Guthrie and Parker’s (1990) observations that annual reports are simply a mechanism whereby private interests may be legitimized in favour of the extant economic, political and social arrangements. The impacts of the wider environmental context on the content of the Australian Red Cross’s annual reports evidence attempts by the organization to suppress and control the release of information, consistent with the perspectives of a PEA framework (Buhr, 1998; Guthrie and Parker, 1990).
International political engagement – domestic social responsibilities
There is a noticeable change in annual report disclosures concerned with organizational leadership, foundational principles and international engagement throughout the international development phase (1984–2000). Although the origins of this shift in emphasis were observable in the previous phase (1964–1983), brought about by political and social disapproval of the Vietnam War, a strategic change in direction is observable apart from the transition from war-related reporting.
The Australian Red Cross focused on representing itself as an internationally relevant institution, immersed in the Fundamental Principles that have increasingly garnered political traction and informed the International Movement’s perspective towards institutional life. By the end of this period, only 10 per cent of the annual report is dedicated to domestic issues, the remainder focused on organizational leadership, foundational principles, international engagement and financial reporting. This institutional focus aligned with the broader political and social context (Cooper and Sherer, 1984; Tinker, 1980; Tinker and Neimark, 1987) experienced throughout this period (1984–2000), in which international development became a mainstream public and political priority. The Red Cross struggled to position itself effectively within the competitive international arena, which saw significant growth in INGDOs as governments outsourced responsibility for providing services under NPM reforms (Alonso et al., 2015).
By the end of the next phase, sector reforms (2000–2014), the Australian Red Cross would once again react to its environment by undergoing some of the most drastic changes in almost 100 years of institutional life (Guthrie and Parker, 1990; Tinker and Neimark, 1987). The enhanced regulatory environment, plus the continued pressure to remain relevant and financially viable amidst the changing nature of humanitarian activity, would see the Australian Red Cross look to home for its meaning and purpose. On the verge of the organization’s centenary, only two pages of the annual report would be dedicated exclusively to international activities (Australian Red Cross, Annual Report, 2013). The focus of the annual reports as depicted by the images and content has transitioned significantly, concentrating on domestic issues, personal engagement and local humanity. This contrasts with the late 1980s and early 1990s, when overseas initiatives, prevalent wars, disaster and emergencies within the global arena were the priority.
This change in content of the annual reports is dramatic. It appears that the Australian Red Cross suddenly became intent on building a profile built on national dependence and domestic security, possibly as a strategic reaction to the change in environmental context as discerned in the ‘Change, Growth and Renewal’ strategy (International Federation of Red Cross and Red Crescent Societies, 2013). This was in contrast to the perspective portrayed in the later part of last century, which emphasized the role of the Australian Red Cross in times of war, disasters and emergencies. In this way the organization presented information intended to favour a predetermined and preferred outcome (Buhr, 1998; Guthrie and Parker, 1990), that is, the creation of the image of a “peace-keeper”.
Concluding remarks
According to Tinker and Neimark (1987: 72–73) annual reports are ideological instruments for promoting policies, beliefs, attitudes and practices in forming a world-view or social ideology that fashions and legitimizes reality. The annual reports analysed reflect the existence of these circumstances at the Australian Red Cross. This is found to be evident early in the life of the Australian Red Cross, leading up to the cessation of hostilities of WWI, with Lady Helen Munro Ferguson lamenting comments made in her President’s address just a year earlier that “all need for the Red Cross [may be] over” (Australian Red Cross, Annual Report, 1918: 20). Instead, she reflected that “a powerful organization has been created, ready at any moment to renew its war activities and be able in days of peace to play a useful part in relieving suffering and promoting national health” (Australian Red Cross, Annual Report, 1919: 26, emphasis added). A stark change in strategic direction is then evident within the content of the annual reports as the Australian Red Cross sought to consolidate its legitimacy when confronted with this reality of its possible demise. This language continued throughout the inter-war period, WWII and beyond, with the Hon. JJ Maloney, MLC, President of the Trades and Labour Council of NSW, noting that “The Red Cross was more than an organisation; it represented everything good in life” (Australian Red Cross, Annual Report, 1943: 11).
Under a PEA framework, the prevailing political regime, economic factors and social values create significant forces that shape organizational actions, including their annual reporting (Tinker, 1980). War as the dominant socio-political factor during times of peace and conflict prevailed throughout the WWI and WWII phases (1914–1920, 1939–1945), the inter-war phase (1920–1939) and post-war phase (1945–1964). Within these contexts, the use of emotive disclosures in building public trust and approbation predominates. This is particularly revealing in times of peace, where the influence of war persists through disclosures designed to elicit an emotive, sentimental or moving response – as long as there are no political or social issues that are too controversial or problematic to address publicly (Neimark, 1992: 100).
However, overt support for war-related activities, in a sense the Red Cross’s initial raison d’être, was wound back considerably amidst the political unrest of the unpopular Vietnam War. During the domestic challenges phase (1964–1984) and also in light of the ongoing struggles with legitimacy and purpose during the sector reforms phase (2000–2014), other priorities came to the fore. The prevailing political, social and economic environment degraded the Australian Red Cross’s ability to discharge and control its accountability responsibilities utilizing its traditional emphasis on war. Unable to focus on aspects that elicited an emotive, sentimental or moving response in line with its previous strategic priorities, other more socio-politically conducive forms of accountability took precedence (Tinker, 1980).
Humanitarian organizations offer insights into what some see as the moral (Baker, 2014; McKernan, 2012; McKernan and McPhail, 2012; Roberts, 1991; Shearer, 2002); socialising (Gray et al., 2006; O’Dwyer and Unerman, 2007); personal (Sinclair, 1995) and possibly emotive side of accountability. That is, a poignant and at times controversial form of accountability that is built upon notions of trust, responsibility, truth and justice in times of war, disasters and emergencies (Everett and Friesen, 2010). It is within this context that this study extends our understanding of the use of annual reports by humanitarian organizations.
However, an intriguing dilemma remains. Everett and Friesen (2010) amongst others (see for example Kirby, 2006; Gray et al., 2006) ask why these organizations that pride themselves so much on their independence, neutrality, humanity, impartiality, voluntary service, unity, universality (ICRC Fundamental Principles) essentially refuse to engage directly in the wider political and economic settings within which they function. Everett and Friesen (2010: 482) travel some distance in responding to this anomaly, suggesting there is something fundamentally absurd about “donors and other institutional actors requesting that NGOs become more accountable when the humanitarian system is in large part a response to the inadequacies, failures, and endemic cynicism of the rich, Western world”. To further support their claims they enlist Foucault (1975), Musgrave (2004) and Thomson (1972) in lamenting the lack of resources spent on peace, development and humanitarian assistance in proportion to that spent on war, or the accumulation of wealth and power.
Jacques Moreillon, Director of the Department of Principles and Law ICRC, has stated that: “The Statutes of the International Red Cross go farther than the principle of neutrality, since they state that the International Red Cross Conference may not deal with political matters (not merely controversies) nor serve as a forum for political debate” (Australian Red Cross, Annual Report, 1984: 21). However, emotive disclosures have been a key theme in winning public support for the Australian Red Cross, challenging the belief that the organization can completely remove itself from political activity. On the contrary, this is an organization that owes its existence to bloodshed and loss of life, having been to this day still unable to disassociate itself fully from the ravages of war, disasters and emergencies, which paradoxically are the life blood of the organization.
Footnotes
Acknowledgements
The authors are grateful to: Moira Drew, Archivist of the Australian Red Cross for her invaluable assistance; participants at the eighth Accounting History International Conference, Ballarat, August 2015; and the Guest Editors and anonymous reviewers of Accounting History.
Declaration of conflicting interest
The authors declare that there is no conflict of interest.
Funding
This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.