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Laan (2009) argues that the two theories namely Stakeholder and Legitimacy, derived from the broader political economy perspective, broadly explain motivations for social disclosures. The paper aims at exploring whether the main motivation to corporations for social and environmental reporting is to enhance their corporate image and credibility with stakeholders.
While a few decades back, corporations sole aim remained enhancing shareholder value in financial terms and report them as per the statutory norms, organisations have now moved beyond traditional financial reporting of their performance to its stakeholders. Currently, stakeholders group not merely constitute shareholders, employees, suppliers, creditors, customers but they also include society, community and all those who are affected by the operations of the organization. Corporate social reporting thus, has occupied a wider perspective.
Stakeholder theory prescribes that all stakeholders including primary and secondary have the right to expect fair treatment from an organisation. That is to say management needs to manage the corporation such that interests of all stakeholders are secured. Community or Society at large may not be directly engaged in transactions with the corporation yet they are influenced and affected by the activities of corporations such as emission levels, waste water creation and its treatment, impact on ecology or surroundings and so on. Ethical branch of stakeholder theory also necessitates that community and society not only have a right to know how they are affected or impacted in the long run from the activities of corporations but also they expect that they must be treated fairly by corporation. At the same time, managerial branch of stakeholder theory explains that organisations prefer to provide social and environmental reporting when they believe that it is in their
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A conceptual framework is developed from the existing theories. Based upon this an exploratory research is done and along with the subjective belief on the concerned topic a conceptual framework is made by the researcher. Several theoretical frameworks are made after the financial crisis of 1929 and also after the recent financial crisis.
One of the most overarching perspectives is that financial accounting theory allows for deliberations and insights to be developed regarding more effective and efficient accounting practices. Within this context of understanding there are a number of theoretical elements, oftentimes competing, as to the proper nature of accounting progress.
ACCOUNTING THEORYIntroduction To better understand accounting theories there is need to develop an understanding of what accounting is in the first place. This picture is best painted by looking at the history of accounting that will also provide insight into the various accounting theories.
Taking this course changed my perceptions about the very pith and substance of how I would ever perceive numbers.After taking this course I realised that numbers like words and conduct and can be just as easily manipulated by the human mind.
It was found that factors like lack of information, the fraudulent information or possible connivance of Enron executives the companies auditor may have caused the non-impounding of various factors to the
A critical perspective of accounting is mainly concerned with promoting a better society. Critical accounting research is based on a classical technique that challenges the present structure and nature of the society. Environmental and social
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