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Adv. Accounting Theory & Practice - Essay Example

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Undergraduate
Author : ernserlenora
Essay
Finance & Accounting
Pages 4 (1004 words)

Summary

The firms in different industries have a conflicting nature in terms of their responsibilities towards society.Their scope of responsibilities clearly depends upon the area in which they are doing business…

Extract of sample
Adv. Accounting Theory & Practice

It is obvious that corporate social responsibility is a part which is very important for running the businesses successfully. But following the predefined the environmental policies compels businesses to behave in a certain a way, for example using high quality raw material, and atmosphere friendly plants. It brings cost to the business which is certainly not favorable for businesses. So, businesses have started deceiving the regulatory institutions and other stakeholders. They have found their ways in fulfilling the requirements of the regulatory bodies. There are loop holes in the system which companies use for manipulating the data and information shared with the stakeholders (Hooghiemstr, 2010). Businesses always communicate with their stakeholders in written form. So there is a lot of documentary material involves. They are shared with stakeholders periodically. Companies which are always under pressure by their stakeholders seem to be using different tactics for the satisfaction of their stakeholders (Clatworthy and Jones, 2001). For that they give out the company information in a manner that will always highlight the areas with positive performance figures regarding company. They never talk about their weaknesses. This is called impression management. ...
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