Offsetting means offsetting assets and liabilities and only reporting the net values in the financial statements. Whether offsetting should be allowed remains the largest difference between US and international accounting standards. Banning offsetting will have a significant impact on the financial statements, especially the banks. Hence, US banks stay firmly opposed to restricting offsetting in accounting due to great negative impact on the banks capital ratios.
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This study draws on the theory of cognitive dissonance to better understand how individuals make moral sense of responsible business behavior in a societal paradox characterized by interdependent and contradictory demands between important social objectives. Using a qualitative survey open to the U.S. public at the the start of the pandemic, the study proposes a typology called the 4R Model of Moral Sensemaking of Competing Social Problems. The 4R Model offers insights for businesses on how their responses to competing social problems may be perceived as either responsible and/or irresponsible. The study then expands the paradox and micro-CSR literatures.
- Research
- Covid Special Series, Sustainable Development and CSR
