University of Wollongong Research Online Faculty of Commerce - Papers (Archive) Faculty of Business and Law 1-6-2002 The legitimizing power of financial statements in The Salvation Army in England, 1865 - 1892 H. J. Irvine University of Wollongong,
[email protected] Follow this and additional works at: https://ro.uow.edu.au/commpapers Part of the Business Commons, and the Social and Behavioral Sciences Commons Recommended Citation Irvine, H. J.: The legitimizing power of financial statements in The Salvation Army in England, 1865 - 1892 2002. https://ro.uow.edu.au/commpapers/121 Research Online is the open access institutional repository for the University of Wollongong. For further information contact the UOW Library:
[email protected] The legitimizing power of financial statements in The Salvation Army in England, 1865 - 1892 Abstract Since its inception The Salvation Army has relied heavily on external funds to survive. There is evidence to suggest that at the time of its founding, in 19th century England, and in its early years, financial statements played a powerful legitimizing role. This was crucial to an organization like The Salvation Army, newly formed and in desperate need of funds. This view is consistent with institutional theory, which emphasizes the importance of such legitimacy. However, it challenges the notion, prevalent in academic literature on accounting in religious organizations, that there is a resistance to the use of accounting as a "secular" activity in an organization with a "sacred" mission. The societal context of the early Salvation Army, the unique characteristics of William Booth, its founder, and its struggle for survival in its early years, all demonstrate an emphasis on an image of financial esponsibilityr , and a reliance on the Army’s audited financial statements ot provide that image.