Sonia Rachele Piotti

What

are ARs?

they form part of the symbolic universe of language, signs, meanings, norms, beliefs, perceptions, and values through which the company defines itself and its relationships with others as it strives to create and maintain the conditions for its continued profitability and growth (Neimark 1992: 6)

 To

whom does the company define itself? With whom does it create its relationships?
A

wide range of users with different interests: -present and potential investors -suppliers and other trade creditors -customers -employees -governments and their agencies -the public

How

does the relationships?

company

realise

its

 What
a

documents do ARs consist of?

profit and loss account (or statement of profit and loss, or income statement) a balance sheet (or statement of financial position) notes to the financial statements a cash-flow statement (or statement of cash-flows), the report of the auditors Directors Report (or US Managements Discussion and Analysis) Operating and Financial Review (OFR) The Letter to Shareholders

Business/financial analysts say about ARs :

Annual reports form part of the symbolic universe of language, signs, meanings, norms, beliefs, perceptions, and values through which the company defines itself and its relationships with others as it strives to create and maintain the conditions for its continued profitability and growth (Neimark 1992: 6) Business people say they produce annual reports because they have to. But no law or accepted professional standard requires expensive designs, colourful pictures and thousands of words of

Linguists (discourse analysts) say about ARs:

ARs

of:

are a hybrid, eterogeneous genre in terms

statutory documents vs. supporting

Discourses:

documents Text types: technical vs. rhetorical (i.e. narrative and promotional) Expressive tools: charts, graphs, figures, pictures, words Writers: financial accountants, managers Intended audience: professionals vs. lay people Purposes and functions: informative, persuasive

What is the contribution of DA to ARs?

DA moves from the results of research in accounting practices Research in accounting practices has proved that:

the CEOs letter is the most heavily-read part of annual reports (Arfin 1993) the CEOs letter is very important from the perspective of the readers in general and the non-sophisticated readers (Courtis 2002) in particular. the CEOs letter is important for the readers in general in terms of the light this kind of information can throw on future prospects (Blake 1987: 97) .

studies in DA have focused on the CEOs Letter more than on any other document:

In the CEOs letter the writer has a great amount of linguistic and rhetorical freedom. Being a section signed by the chairman rather than the company as an institution, the chairmans statement allows for a high degree of subjectivity, argumentation and persuasive discourse. [...] This relationship between informing and persuading makes the chairmans statement a particularly interesting and challenging object of study. (Skulstad 1997: 62-63)

DEFINITION OF RHETORICAL GENRE STRUCTURE: CONSTITUTIVE ELEMENTS (SWALES, 1990; BHATIA, 1993)
Rhetorical structure = cognitive pattern construed for the production and interpretation of a genre in a particular discourse situation.

Moves = prototypical text entities with a particular rhetorical function that contribute to the realization of a genres communicative purpose.

Steps = individual tactics used by a writer to realize a move; they (tend to) occur in a fixed sequence.

The Analysis of the rhetorical structure of ARs

RECON Model (Skulstad 1997, 2002): focus on the interpersonal function of language RECON Model: Based on the analysis of the constituent elements of RHETORICAL GENRE STRUCTURE (SWALES, 1990; BHATIA, 1993) 1. Establishing Relationship 2. Maintaining Confidence 3. Reinforcing the Relationship

THE RECON MODEL (SKULSTAD 1997, 2002)

MOVE 1: ESTABLISHING RELATIONSHIP Optional Step A: salutation Optional Step B: providing the background for the present scene Step 1: summary statement Step 2: providing figures describing company performance Step 3: selecting aspects of the past financial year MOVE 2: MAINTAINING CONFIDENCE Step 1: projecting the future by Step 1A: announcing corporate strategies, policies and objectives and/or Step 1B: predicting the future/looking ahead Optional Step 1C: signalling honesty Optional Step 1D: providing reassurance MOVE 3: REINFORCING RELATIONSHIP Step 1: reviewing board changes (if any) Step 2: acknowledging credit to management and employees Step 3: closing statement of reassurance Step 4: signature

Move 1 : Establishing relationship

Optional Step A: Salutation

With this letter, I address you personally for the first time in a DaimlerChrysler Annual Report.

Move 1: Establishing relationship

Opt. Step B: Providing the background for the present scene
Ill begin with a brief overview of the current situation. DaimlerChrysler is one of the worlds most renowned automotive companies, offering a broad spectrum of unique brands. With our comprehensive range of passenger cars and commercial vehicles, we are represented worldwide in nearly all markets and market segments. [] We safeguard our market position through innovation and pioneering technologies. Examples include new systems designed to improve traffic safety such as BAS PLUS brake assistance and PRE-SAFE occupant protection, as well as BlueTec the cleanest diesel engines in the world. [] Last year, it launched the Dodge Charger, the Ram Mega Cab, the Viper Coupe and the Jeep Commander, as well as the powerful and sporty SRT vehicles.

Move 1: Establishing relationship

Opt. Step B: Providing the background for the present scene
Use of emphatics: -lexical items with positive meaning (broad spectrum of unique brands; comprehensive range of; represented worldwide; safeguard innovation and pioneering technologies; new systems designed to improve safety; -superlatives (cleanest diesel engines in the world)

Move 1: Establishing relationship Step 1: Summary statement

This Annual Report provides you with detailed information on business developments, our financial situation and DaimlerChrysler in general.

Move 2: Maintaining confidence

Step 1A: Projecting the future by announcing corporate strategies, policies and objectives In total we will launch approximately 50 new vehicles in the years 2005 through 2008. To do this, we will invest nearly 35 billion in the next three years. Step 1B: Projecting the future by looking ahead This will be the foundation for our future success.

Move 2: Maintaining confidence

Step 1A + 1B: Projecting the future by announcing corporate strategies, policies and objectives and by looking ahead

Use of emphatics: -epistemic emphatics (i.e. WE WILL): high level of commitment to or responsibility for what is being said -lexical items with positive meaning: launch new vehicles; invest; the foundation for our future success

Move 2: Maintaining confidence Signalling honesty and providing reassurance (1)

Although we are not yet where we want to be, our strengths give us confidence in our future. We know that we need to do more to improve our profitability. Last year we did not cover our cost of capital, and this is something we are striving to change. We can only create the right conditions for a sustainable increase in the value of our company and thus also for the positive development of our share price through long-term profitable growth. In view of the difficult competitive environment, this is an ambitious goal. We have therefore initiated a far-reaching transformation process throughout DaimlerChrysler so that we can permanently improve our competitiveness.

Move 2: Maintaining confidence

Now focus on the sentences signalling honesty
Although we are not yet where we want to be, our strengths give us confidence in our future. We know that we need to do more to improve our profitability. Last year we did not cover our cost of capital, and this is something we are striving to change. [] In view of the difficult competitive environment, this is an ambitious goal.

Move 2: Maintaining confidence The step signalling honesty is realised by means of two strategies: MITIGATION
Although we are not yet where we want to be, our strengths give us confidence in our future In view of the difficult competitive environment, this is an ambitious goal.

VAGUENESS
We know that we need to do more to improve our profitability. Last year we did not cover our cost of capital, and this is something we are striving to change.

Match the sentences to the strategies above

What are the functions of these strategies in the contexts above? MITIGATION: INFORMATIVE: financial performance during the financial year 2004 not (as) good (as expected)

INTERPERSONAL: the writers attitude to the propositional content + what the reader is expected to know about the propositional content: the poor financial performance is moved to the background. What matters is the sentence providing reassurance for the future. Lets see

Compare the following sentences: 1) Although we are not yet where we want to be, our strengths give us confidence in our future. 2) We are not yet where we want to be, although our strengths give us confidence in our future. 3) We are not yet where we want to be, but our strengths give us confidence in our future. HYPOTAXIS vs. PARATAXIS (1/2 vs. 3) HYPOTAXIS: which piece of information needs foregrounding? (1 vs. 2)

SALIENCE

What is the function of these strategies in the contexts above? (2) VAGUENESS INFORMATIVE function: financial performance
during the financial year 2004 not (as) good (as expected)

INTERPERSONAL function: avoidance detailed information and unnecessary risks

of

Move 2: Maintaining confidence

Signalling honesty and providing reassurance (2)

All of the measures taken in this context have one thing in common: We will get faster, more flexible, leaner and more efficient, and seek to achieve operational excellence in everything we do. At the same time, we are working on improving our cost structure in order to match the level of our best competitors. However, it would be shortsighted to look only at costs. Our focus is on products. In this area we want to achieve even more - with the more efficient use of our resources. We aim to combine our strengths within DaimlerChrysler to develop, produce and sell compelling top-quality products that provide maximum customer benefit. Ultimately, our products will be the measure of our success. And we are already making progress in this regard.

Move 2: maintaining confidence Opt. Step. 1D: Providing reassurance Our motto is Driven by Values. Top performance, responsibility and openmindedness are the principles behind our actions. We place a top priority on adherence to ethical principles. We intend to live these values internally and externally - enabling our customers to experience driving values with our products.

Move 3: Reinforcing the relationship

Step 2: (indirectly) management Acknowledging credit to

I have held the top position at DaimlerChrysler since the beginning of this year (2005). For me, it is the most interesting job in the entire automotive industry and a great professional challenge. [] The Mercedes-Benz brand now has the youngest and most comprehensive product range in its long history. [] Thanks to strong products [] we set new records for unit sales of commercial vehicles in 2005. We are pioneers in the market with our hybrid drive and BlueTec diesel technology. Use of emphatics: superlatives

Move 3: Reinforcing the relationship

Step 3: Closing statement of reassurance

I have great confidence in our company. DaimlerCrhysler undoubtedly has the potential to create sustainable value for you, our shareholders, and concurrently for our customers, our employees and society in general. My colleague and I will make every effort to ensure that we realize this potential. Use of emphatics: -epistemic emphatics (undoubtedly; WILL) -other emphatics (great confidence; every effort to ensure; realise this potential)

Move 3: Reinforcing the relationship Step 4: Signature I cordially invite you to join us on this path forward. Yours sincerely,