Annual Report Graphic Use: A Review of the Literature

Corporate annual reports typically include a narrative section and a financial section. The narrative section is not scrutinized by auditors as the financial section is, yet many readers rely heavily on its graphs to estimate the firm's financial situation. However, the graphs often misrepresent the financial data. To better understand annual report graphs' important role, this article examines more than 25 years of literature related to these four areas: (a) the ways financial graphs are prepared, used, and misinterpreted; (b) differences by country; (c) regulatory influences for accountants; and (d) the parts formatting and media selection decisions play in communication interpretation and persuasion. Across the literature, the author notes consensus that annual report graphs are widely used in many countries and that there is rampant disregard for the guidelines for their accurate, non-misleading presentation. The article concludes with seven proposed directions for future research.
Penrose, John M. JBC (2008). Design>Document Design>Business Communication>Visual Rhetoric
Beautiful Evidence is Edward Tufte's fourth and latest book and both follows and diverges from the directions established with The Visual Display of Quantitative Information (Tufte, 1983), Envisioning Information (Tufte, 1990), and Visual Explanations (Tufte, 1997). Visual Display examined pictures of numbers, Envisioning explored pictures of nouns, and Visual Explanations addressed pictures of verbs. Beautiful Evidence foregoes the 'pictures of' approach and instead establishes the role of evidence as the foundation of reasoning. In some ways, this latest book might have been better positioned as the first book because of its efforts to explain interplays of understanding and reasoning.
Penrose, John M. JBC (2007). Articles>Reviews>Graphic Design>Usability
Changing Uses of Technology: Crisis Communication Responses in a Faculty Strike

This case study of a faculty strike examines the crisis response strategies of a university and its faculty union and the changing uses of technology to communicate to key stakeholders. An analysis of the types of crisis response strategies reveals that both the university and the faculty union used defensive and ingratiation strategies to build their cases and protect their reputations. The university also used denial to argue that the strike was not disrupting operations. The university and the union both relied on e-mails, Web sites, and press releases to update their constituencies. The difference was that for the union in particular, technology both expanded the options for sending information and accelerated the flow of information when conditions changed. The case study illustrates that technology has diminished an organization's control of crisis communication by opening numerous communication channels for others to use to explain their positions and build support.
Vielhaber, Mary E. and John L. Waltman. JBC (2008). Articles>Business Communication>Email
Government auditors collect data and assess, via written reports, the operations of a government; however, little is known about what can affect and govern their representations of those operations. This analysis examines research studies about author bias and government audit manuals in order to understand how government auditors' neutrality is threatened. While bias may be an overt function of preferential or prejudicial thoughts, most sources of bias that influence auditors derive from less explicit sources including prior expectations, media coverage, nondiagnostic information, and other significantly less direct channels. To determine how government guidelines address this issue for their auditors, the principle audit manuals for Canada and the United States were reviewed for their references to bias, impartiality, and objectivity. Neither manual provides a significant amount of guidance to assist auditors in addressing the problems of bias in data collection, interpretation, and representation. If bias is to be reduced in audit reports, more must be done.
Palmer, Laura A. JBC (2008). Articles>Business Communication>Government>Reports
Corporate Risk Reporting: A Content Analysis of Narrative Risk Disclosures in Prospectuses

This study examines whether companies report risk-relevant information to prospective investors. While corporate risk communication is important for the well-functioning of capital markets, our current understanding of risk reporting practices is limited. The sample consists of Dutch companies raising capital on the Amsterdam Stock Exchange in the late 1990s. In this setting, companies had much discretion in writing the risk section of the prospectus. After a detailed content analysis of the risk sections, the author demonstrates that a measure of risk extracted from these texts successfully predicts the volatility of companies' future stock prices, the sensitivity of future stock prices to market-wide fluctuations, as well as severe declines in future stock prices. Overall, these results support the view that prospectuses of Dutch companies provide adequate information about material investment risks.
Deumes, Rogier. JBC (2008). Articles>Business Communication>Financial>Risk Communication
Corporate Social Responsibility Reporting in South Africa: A Descriptive and Comparative Analysis

In this article, the authors compare the corporate social responsibility reporting (CSRR) of companies" environment, human relations, community, human rights, and diversity dimensions"in the emerging market economy of South Africa with that of companies in the leading economies represented by the Fortune Global 100. The descriptive analysis extends earlier empirical work on the CSRR of emerging market economies, and the impact of culture on CSRR, by examining annual report data from the top 100 companies listed on the Johannesburg Stock Index and the Fortune Global 100. Generally, the frequency and level of CSRR in South African companies was significantly higher than that of the Fortune Global 100, which indicates a greater willingness to convey social responsibility in their disclosure practices. This lends credence to the notion that emerging market economies may be more receptive to stakeholder concerns and social responsibility than peer institutions in leading economies.
Dawkins, Cedric and Faith Wambura Ngunjiri. JBC (2008). Articles>Business Communication>Marketing>Africa
This is a clever, witty, and engaging--if at times frustrating--book. The central thesis is that in our information age, made possible by digital technology, the scarce commodity to be allocated (and thus a matter of economics) is not 'stuff,' broadly defined as what you can kick or the information based on such stuff (also, stuff). We're drowning in stuff. Instead, it's attention that's scarce, and allocating attention is a matter of style, of rhetoric.
Andrews, Deborah C. JBC (2007). Articles>Reviews>Rhetoric
Genre Patterns in Language-Based Communication Zones

This article modifies and elaborates the language-based communication zones model. The authors distinguish between potential zones and activated zones, add MegaZone Two and MegaZone Three to the model, define language competency more completely and precisely, and identify three types of genre patterns (i.e., professional genre, commercial genre, and relational genre). Concentrating on the language patterns in the direct channels of language-based communication zones, they focus on determining the language competencies required to communicate directly in different communication situations and about different communication tasks. Professional, commercial, and relational genre patterns in Zone One, MegaZone Two, and MegaZone Three are identified and described. Research-based examples are included to illustrate the genre patterns.
Du-Babcock, Bertha and Richard D. Babcock. JBC (2007). Articles>Business Communication>Genre
This study utilizes the hegemonic model of crisis communication to critically analyze the ideological implications of Nike's sweatshop labor crisis that culminated in the Kasky v. Nike court case. This groundbreaking case merits further examination and, informed by Gramsci's notion of hegemony, reveals the underlying ideological struggle present in the Nike crisis: a struggle for voice, power, and free corporate speech. Activist voices opposing sweatshops, Nike's defenses, and eventually, the legal decisions of the U.S. court system constituted competing voices in these ideological struggles over what is acceptable or right corporate behavior. This hegemonic struggle influenced standards for international labor, public relations efforts that misrepresent facts, and consideration of corporate public relations as free or commercial speech. This hegemonic model of crisis communication, unlike previous theories, recognizes the dynamic struggle between voices with various levels of power and the important ideological implications resulting from competing voices in crisis communication.
McHale, John P., Joseph P. Zompetti and Mary Anne Moffitt. JBC (2007). Articles>Business Communication>Legal>Public Relations
I now believe that the architects of a university's systems have extraordinary power and leverage to shape academic life in ways faculty often are only dimly aware of. Finally, we can help change the talk or narrative in our organizations about publications and reshape it to discussions about rewarding a blend of scholarship, research, publication, teaching, and service. Changing organizational talk is extremely difficult. Determining leverage points or openings for new language is hard to determine. Also, it's a challenge to determine ways to make that different language contagious, to make it stick. But I believe the challenge is worth pursuing, and it's work we should be good at. As Malcolm Gladwell (2000) points out in The Tipping Point, new language can be contagious, small actions can have big effects, and change can occur fast. In fact, if I were to step back into my Arcadian world of innocence where truth and beauty reigned, I might even believe that our colleagues and even our academic administrators have grown tired of the research bean-counting game and would welcome a new language, a different conversation, and a more growth-inducing set of values about the work we do.
Suchan, Jim. JBC (2008). Articles>Publishing>Research
The Impact of Perceptions of Journal Quality on Business and Management Communication Academics

This commentary describes and critiques criteria that, according to results from an Association for Business Communication (ABC) member survey, are having an impact on quality judgments about our journals. ABC members rank the Journal of Business Communication and Business Communication Quarterly as top research and pedagogical journals in business/management communication, a finding corroborated by a larger study of academics in business and technical communication. However, the growing importance of citation counts and journal rankings currently disadvantages our journals, presenting us with professional obligations and personal dilemmas in relation to them. The authors' purpose is to raise awareness of the various determinants of perceptions of journal quality, to explore the communal views of ABC members on this issue, and to seek ways of enhancing the value of business/management communication research in the academic marketplace.
Rogers, Priscilla S., Nittaya Campbell, Leena Louhiala-Salminen, Kathy Rent and Jim Suchan. JBC (2007). Articles>Publishing>Research>Assessment
This study examines the processes by which workers in a particular Indian call center located in Kolkata expanded on, negotiated, and chose among an array of possible, especially new, identities and identifications and the ways that these choices affected changing social discourses. Our case study depicted a workplace that was simultaneously casual and urgent, temporal and spatially free and constrained, situated in both Indian and U.S. cultures, and oriented toward business and night-club ambiances. Within this particular workplace, call center employees (re)constructed and negotiated among an array of discourses that bracketed opportunities for particular identities and identifications. Through these negotiation processes, they (a) engaged in strategic identity(ies) invocations and (b) reframed work, career, and family discourses and practices.
Pal, Mahuya and Patrice Buzzanell. JBC (2008). Articles>Business Communication>Workplace>India
Investigating Presentational Change in U.K. Annual Reports

This article examines structural and format changes in annual reports of U.K. listed companies from 1965 to 2004 with a particular focus on graph use. The article compares a new sample of 2004 annual reports with preexisting samples by Lee and by Beattie and Jones. Lee's identified trends continue. There has been a sharp increase in page length, voluntary information, and narrative information, particularly among large listed companies. A detailed analysis of voluntary disclosure indicates changes in the incidence and pattern of generic sections. Graph usage is now universal. However, key financial graph use has slightly declined, replaced by graphs depicting other operating issues. Impression management through selectivity, graphical measurement distortion, and manipulation of the length of time series graphed are common. Overall, annual reports continue to exhibit many features of public relations documents rather than financially driven, statutory documents, and the analysis of graph usage suggests a need for policy guidelines to protect users.
Beattie, Vivien, Alpa Dhanani and Michael John Jones. JBC (2008). Articles>Business Communication>Document Design>United Kingdom
Journal of Business Communication

The Journal of Business Communication (JBC) publishes manuscripts that contribute to knowledge and theory of business communication as a distinct, multifaceted field approached through the administrative disciplines, the liberal arts, and the social sciences. Accordingly, JBC seeks manuscripts that address all areas of business communication including but not limited to business composition/technical writing, information systems, international business communication, management communication, and organizational and corporate communication. In addition, JBC welcomes submissions concerning the role of written, verbal, nonverbal and electronic communication in the creation, maintenance, and performance of profit and not for profit business.
The Link Between Leadership Style, Communicator Competence, and Employee Satisfaction

The current study examined the influence of supervisor communicator competence and leadership style on employee job and communication satisfaction. Participants were 220 individuals (116 men and 104 women) working full-time for a variety of companies in the Midwest. The findings indicated a strong relationship between supervisors' communicator competence and their task and relational leadership styles, with supervisor communicator competence being a stronger predictor of employee job and communication satisfaction. More specifically, the findings indicated that supervisor communicator competence accounted for 68% of the variance in subordinate communication satisfaction and nearly 18% of the variance in subordinate job satisfaction. More important, these findings provide an association between communication, leadership, and employee job and communication satisfaction.
Madlock, Paul E. JBC (2008). Articles>Management>Business Communication>Workplace
The Mission Statement: A Corporate Reporting Tool With a Past, Present, and Future

This article discusses a comprehensive study of the mission statements of Fortune 1000 higher-performing and lower-performing firms to assess the current state of the mission statement. After content analysis of these firms' mission statements, the components included for these two groups of firms were compared. The higher-performing firms included eight of the nine recommended components more often than did the lower-performing firms, and the differences were significant for three of those components. Also, using textual analysis methods, this study identified strategies employed by these firms to create a strong identity--or internal ethos--and image--or external ethos. The two groups used somewhat similar strategies for building corporate identities and images but differed in the values they emphasized and the goodwill recipients they targeted.
Stallworth Williams, Linda. JBC (2008). Articles>Business Communication
Based on the action research model of inquiry, this article is an interpretive ethnographic case study, exploring the power of narratives as a sensemaking device for members of a women's resource network in a large corporation during a time of significant organizational change, and the influence of storytelling on the networking practices of its members. Data are based on participant observation, formal and informal interviews, focus groups, and document analysis, including presentations, meeting notes, and e-mail correspondence. Drawing on the concepts of sensemaking, identity construction, and habitus, analysis of the members' stories suggests three key conclusions: reliance on collectively constructing stories; use of stories to deal with ambiguity and anxiety; and use of stories to construct and regulate identity. When viewed through a narrative lens, these results illuminate the interconnection of storytelling and networking strategies in a women's resource network that provides a hybrid of both expressive and instrumental benefits.
Bird, Shelley. JBC (2007). Articles>Collaboration>Workplace>Gender
Signaling Corporate Strategy in IPO Communication: A Study of Biotechnology IPOs on the NASDAQ

A clear corporate strategy communication can be a signal to financial analysts and public investors at the time of an initial public offering (IPO). This study examines IPO prospectuses of 57 biotechnology firms listed on the NASDAQ between 1997 and 2002. Using regression analysis, this article shows that the clarity, intensity, and consistency of the corporate strategy signal are not strong enough to affect the 1st-day initial returns. However, consistent communication of a prospector strategy negatively impacts 30-day initial returns, whereas consistent communication of a defender strategy positively impacts 30-day initial returns.
Gao, Hongzhi, Jenny Darroch, Damien Mather and Alan MacGregor. JBC (2008). Articles>Business Communication>Financial
A Systematic Approach to Visual Language in Business Communication

Although business communication relies heavily on the visual, current approaches to graphics and text design are prescriptive and unsystematic. A 12-cell schema of visual coding modes and levels provides a model for describing and evaluating business documents as flexible systems of visual language. Emphasizing clarity and objectivity, the 'information design' movement has generated guidelines for creating functional visual displays. However, visual language in business communication is seldom rhetorically 'neutral' and requires adaptation to the contextual variables of each document, a goal the writer can achieve by com bining visual and verbal planning in the same holistic process.
Kostelnick, Charles. JBC (1988). Articles>Business Communication>Document Design>Visual Rhetoric
Teaching Ethics Isn't Enough: The Challenge of Being Ethical Teachers

Rather than acting on less examined beliefs, I am personally comfortable acting on ethics that have been burnished by repeated polishing from my colleagues, community, and profession. Let us use our professional conferences and journals to further that conversation.
Kienzler, Donna S. JBC (2004). Articles>Education>Ethics
Toward a Taxonomy of Corporate Reporting Strategies

Studies of corporate reporting that focus on information disclosure do so primarily from a mandatory, financial perspective owing the decision to the rationality of corporate actors. Yet, social and environmental disclosures"often reported voluntarily"are increasing in importance because of their impact on a firm's performance and perceived value. Likewise, disclosure decisions are made based on managerial choice, often being communicated for a specific strategic purpose. The aim of this article is to illuminate the importance of voluntary disclosures as an aspect of corporate reporting and to integrate the deterministic and behavioral elements of disclosure decisions. A taxonomy of the disclosure process, activities, tasks, forms, types, and strategies is provided to add to our understanding of the additive and corrective nature of proactively disclosing information either to provide context to existing disclosures or to use information in a preventive manner.
Clark Williams, Cynthia. JBC (2008). Articles>Business Communication>Reports
"You're a Guaranteed Winner": Composing "You" in a Consumer Culture

This article explores the functional elegance of direct mail as it constructs its target audience. More specifically, it examines direct mailings included in a nationally publicized court case involving Publishers' Clearing House and articulates how the use of particular genre-based, rhetorical and linguistic strategies in these mailings construct reader identity. It argues that the documents use you-attitude to construct the identity of the reader as winner, implied reader devices to reinforce the reader's identity as winner and to establish the reader's identity as the writer's friend, and linguistic politeness strategies to build feelings of solidarity of the reader toward the writer. It concludes with the observation that the direct mail in our study, rather than being "junk," is really a skillfully written set of documents, successfully interweaving various discourse strategies and raising both ethical and professional issues in the process.
Ewald, Helen Rothschild and Roberta Vann. JBC (2003). Articles>Business Communication>Marketing>Rhetoric
Interpretative Management in Business Meetings

Middle managers interpret experiences and observations of employees and relate them to organizational contexts, practices, and strategies. By analyzing authentic verbal communication between middle managers and employees, this article will draw five conclusions about how interpretational work support organizational goals and values: 1. Middle managers and employees collaborate in interpreting tasks in relation to organizational context; 2. This interpretative work is based on language acquisition: learning the vocabulary of the organization; 3. The managers articulate the process, explicitly defining reality and influencing language use; 4. Employees show expectation of having their experiences interpreted by managers; 5. Employees may challenge managers with competing interpretations. This article will contribute to the study of leadership communication by combining organization communication theory and conversation analytic methodology. The article shows important ways in which middle managers "do leadership": by contextualizing employee actions and bringing employee perceptions in accordance with executive-level perceptions of organizational practices.
Nielsen, Mie Femø. JBC (2009). Articles>Academic>Business Communication>Organizational Communication
Using a conversation analytic approach, this article presents a systematic analysis of the interactional use of the particle ok in the institutional setting of German business meetings. Through an examination of talk-in-interaction with a thorough description of relevant embodied actions, the author analyzes how meeting participants co-construct social roles by employing different uses of free-standing ok. More specifically, the author focuses on two different uses of free-standing ok in business meetings: ok with averted eye gaze and ok with maintained eye gaze. The author addresses the question of how the chairperson uses free-standing ok to accomplish different actions and to perform "doing-being-facilitator." By describing where the chairperson looks while producing ok, I also discuss how the chair manages both the coordination of face-to-face interaction and the practical task of facilitating the progress of a meeting.
Barske, Tobias. JBC (2009). Articles>Management>Linguistics>Business Communication
"So What Shall We Talk About": Openings and Closings in Chat-Based Virtual Meetings

Using the framework of conversation analysis, the author examines the structure of interaction in computer-mediated team meetings, focusing on the openings and closings of the team's four virtual meetings. The author describes how the medium, quasisynchronous chat (QSC), disrupts the temporal flow of conversation and makes beginning and ending these informally structured meetings difficult. The author finds that the team, as a result, evolved a two-stage process for both opening and closing the meetings, which allowed them to make consistent use of certain linguistic and conversational devices to mark possible transition points for openings and closings. The author discusses how these virtual meetings compare to face-to-face interactions and some possible implications for the use of QSC for virtual team meetings.
Markman, Kris M. JBC (2009). Articles>Collaboration>Online>Teleconferencing
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