In a similar manner, disclosing the information associated with the corporate social responsibility activities is an important part of the daily functioning of organizations. Importance of CSR Reports The importance of CSR reporting has emerged because of the lack of dependence on the information provided by organizations, as opposed to their actual contribution towards the society. From the academic point of view, there is an accepted theory that discusses the factors responsible for motivating companies in disclosing their CSR information. Most of the information disclosed in the CSR reports was previously considered as the activities or decisions belonging to the private domain of corporations. The theoretical evidences suggest that companies disclose information associated with CSR activities to the public, in order to satisfy their prime needs and reflect an extremely responsible image towards the society. The legitimacy helps organizations in achieving the main purpose of attainment of sustainable profitability as an important goal of the business. The corporate sector gives huge economic profit to the environment and society. However, in spite of the advantages, there remains an increasing concern related to the wastage or abuse of resources in the society. The society offers huge benefits to the corporate sector, which is why, it has the right of seeking information associated with what the organization returns to the society. The increasing awareness concerning the natural resources is responsible for the decision of legitimacy of companies, which in turn increase the necessity of disclosing CSR information. Stakeholder’s theory According to P.A. Stanwick & S. D. Stanwick (2006), the business relationship must be occupied with a large number of managerial researches (Tilt, 1997; 2007). The stakeholder’s theory addresses to questions where stakeholders require special attention. Approaches to this kind of question are determined by the relationship between organizations and the stakeholders. It is done on the basis of exchange transactions, legitimacy claims, power dependencies and various other claims. The researchers have integrated the stakeholder’s theory with the help of various managerial perspectives, mainly the theories belonging to governance and agency. The stakeholders theory have been an useful frame, being both normative and instrumental, for measuring the role of NGOs in developing and adopting environmental standards. The stakeholder management offers theoretical base for proper understanding of the necessities of the stakeholders and function accordingly. Legitimacy Theory According to Brennan & Merkl-Davies (2013), Legitimacy theory can be explained in the following manner: Every organization seeks legitimacy from the public by ensuring the fact that their value system is congruent with the value of the community, within which it is performing its business operations Deegan & Rankin (1996) have identified four different strategies with the help of which the organizations improve their self-image, thereby gaining legitimacy. They can seek legitimacy from the public by informing them about the real changes in the behaviour, followed by bringing a change on the perception of general public, without causing any change in the actual behaviour,
Corporate Social Reporting Name of the of the Professor University Date Introduction In today’s world, most companies take active participation in the performance of corporate social responsibilities. The corporate social responsibility reporting has become highly significant with increasing public interest of participation in the CSR activities…
The paper attempts to explore why it has become so necessary for public sector organisations to embrace sustainability accounting and reporting to their stakeholders; the difficulties faced by them towards its implementation and how the process of reporting in public sectors has progressed so far in last few years.
Accounting Theory Introduction Social and environmental reporting is also known as corporate social responsibility reporting (CSER) (Deegan, 2007). According to UNEP (2002) corporate social responsibility reporting can also be defined as an environmental management strategy applied by companies to communicate with their stakeholders about what the company is doing with regard to sustaining a good environment alongside its operations.
Many companies now include a report of their social accountability in their annual financial statements, while this has become a legal requirement in some countries. Activists are insisting that companies, especially those operating globally act more responsibly and consider the impact of their actions on stakeholders.
Social and environmental reporting are not compulsory in organizations although their disclosure has various benefits. Adams (2002: 244-245) argues that, “The main motivation for corporate social and environmental] reporting is to
The theories are, legitimacy theory, shareholders theory, and stakeholders theory (Belal, 2008, pp. 32). This paper takes a stand that it is difficult to analyze these assertions by Adams, without the use of a
The primary motivation of the corporate reporting is to enhance the image of the corporate, as well as its credibility with the stakeholders. Stakeholders include customers, employees, the society as a whole, the suppliers as well
Integrated reporting is the one that connects current decisions of a corporation with future prospects (Davies and Brennan, p. 122). The information that the organization uses to make the current decisions are risk,
In this case, the success of any business entity depends on the proper strategies that are set and the accounting systems put in place.
These systems have to be recorded at all times in the life of the business so that analysis
6 pages (1500 words)Essay
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