of (Starbucks has not paid The UK corporation tax 2012) - Case Study Example

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of (Starbucks has not paid The UK corporation tax 2012)

According to this theory, an organisation is part of the society in which it operates (Benoit, 2000). An organisation, therefore, is supposed to adhere to certain, explicit or implicit, norms and values. The voluntary disclosures therefore are seen as biased because they are influenced by the interaction of the firm and that particular society. This theory, therefore, emphasizes that the vehicle for voluntary disclosure and the information disclosed be analyzed in context of the society in which the organisation operates (Benoit, 1995). Closely related to the system oriented theories is the legitimacy theory. This theory states that the organisation derives its legitimacy from the society in which it operates. Therefore, the society has a multitude of implicit and explicit expectations on the organisation which the organisation should not forego. A firm can only be seen as legitimate if its status, condition or operations are in sync with the society’s expectations. The society supports legitimate businesses (Islam and Deegan, 2010). One of the ways to legitimize a business is by making voluntary disclosures for the benefit of the society. ...Show more

Summary

Starbucks: Case Study Name: Course: Professor: Institution: City and State: Date: Introduction A crisis is an unfortunate situation that has created a threat to an organisation’s existence, and the management has to respond to the ongoing threat. To maintain a good reputation even in times of crisis it is imperative that an organisation has a good crisis-management strategy in place (Hooghiemstra, 2000)…
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