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1. Introduction
Recent years have saw that listed firms, especially the large organisations, voluntarily disclose their Social and Environmental issues in their annual reports. As a result, a question was come up with by researchers: why managers would choose to undertake the voluntary activities?
Although there is no consensus being reached about what perspective theories should be used to explain the Social and Environmental Accounting, and moreover critique voices are from the works of Marx or by the deep-green or feminist literatures (Deegan, 2002), to some extent, systems-oriented theory and Positive Accounting Theory can list some hints.
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“The reputation risk management perspective on voluntary social and environmental disclosures in annual reports assumes that threats to corporate legitimacy can result in damage to the value of a company’s reputation, and such risks to reputation need to be minimized through active management.” (Deegan & Unerman, 2006)
As said by Jonathan Symonds, the Chief Financial Officer of AstraZeneca’s Risk Advisory Group, Failure to deliver our core value could seriously impact out reputation. While the core value is something like social responsibility, environmental policy, and so on, it is those that company should communicate with the public to protect their reputation as legitimate.
For example, after the Brent Spar oil rig dumping, Royal Dutch/Shell voluntarily prepared reports about its people and profits in order to repair its image for its failure to deal with the execution by the Nigerian government of an anti-Shell activist (Livesey & Kearins, 2002).
3. Stakeholder theory
As both legitimacy theory and stakeholder theory belong to “political economy theory”, they have some overlaps (Gray, Kouhy, and Lavers, 1995). However, compared with legitimacy theory, which mainly discusses the social expectation, stakeholder theory presents a closer view with particular groups in society. That is, legitimacy theory concern about the
Another challenge for companies when considering social responsibility is the possible negative perception of shareholders. Historically, publicly-owned companies had a primary focus of maximizing shareholder value. Now, they must balance the financial expectations of company owners with the social and environmental
If some research is undertaken that provides evidence that capital markets do not always behave in accordance with the Efficient Market Hypothesis, does this invalidate research that adopts an assumption that capital markets are efficient?
Because corporations are established to profit and shareholders invest money with expectations of a greater return, managers cannot be given a directive to be “socially responsible” without providing specific criteria of checks and balances to which needs to adhere. Therefore, it is imperative to the success of a corporation for managers to not act solely but rather to act within the policies of the shareholders.
The company dose not use a third party designee and the tax returns are signed by the president, Carlos Cruz.
In promotion it is said a corporations reputation is fragile and valuable. These companies risked losing their reputation to supporters of
According to the fact of this case, Parent Co. (Parent) wholly owns Poor Son Co. (Poor Son) as a legal subsidiary, and both of them all nonpublic companies. However, in January 2007 Poor Son filed a voluntary bankruptcy under Chapter 11 of the U.S. bankruptcy code because of its inability of meet obligations as they became due. Then, Parent claimed the loss of control of Poor Son and deconsolidated Poor Son from its financial statement. Through the bidding process in May 2009, Poor Son and OtherCo, the winning sponsor, filed a joint plan of reorganization to the bankruptcy court, but the plan was rescinded by OtherCo later due to significant market value shrink of Poor Son. After that, the
Assess the degree to which the firm’s accounting reflects the underlying business reality. Identify accounting distortions and evaluate their impact on profits and the sustainability of profits.
Due to the information, 20 acres of land equal 80 sheep according to the exchange rate of last year, a one-room cabin equal 3 acres of land and equal 12 sheep finally, a plow equals 2 goat and equal 2/3 sheep according to last year’s exchange rate and 2 carts which were traded with a poor acre of land equals 8 sheep plus 400 sheep. So Deyonne’s total assets are 500(2/3) sheep. Deyonne’s liabilities and assets deduction are 35 sheep plus 3 sheep, which will come to 38 sheep,
The accounting system we use today started in Venice in renaissance period over 520 years ago. The trade business increased hugely during this time and all the financial recordings had to be written down to help people see how their business is doing. During that time in 1494 the first book about was published in accounting by Luca Paciolli and was called “The Collected Knowledge of Arithmetic, Geometry, Proportion and Proportionality”. He was called “The father of Accounting” and most of his described principles have been used up until this day.
To be ethic, to be responsible to the society should be the new role of accounting in society. That’s the reason critical perspective accounting have been put forward. It is a theory that questions prevailing social order and how accounting practices actually contribute to inequities. One breach of it is to provide a sustainability report or tribe bottom line that report the social, environment and economic.
only business activity is to sell pod racers imported from PD. ID pays a 20% import duty based on
1. A brief history of the two organisations, and their objectives, in as far as they
Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue
As Kline (2017) stated, “Socially responsible companies can reduce their credit spread by 40%, avoid market losses from crises (saving millions), double the probability of receiving investment grade ratings, reduce share price volatility 2-10%, and reduce systematic or market risk by 4%.” More interestingly, Kline (2017) mentioned, “...the researchers found that corporate responsibility could potentially increase the market value of a company by up to 6% over a 15- year period. Market value may grow even more -- to 40-80% higher than peers ' and competitors ' market value -- for companies with strong relationships with stakeholders such as environmental and social NGOs.” Similarly, Kline (2017) voiced, “The study found several advantages on the human resources front due to retention of talent attracted to CR. Staff turnover rates are 25 to 50% lower in responsible companies, who can save around $3700 on average in wage increases to encourage an employee to stay when he or she would rather go elsewhere.” Kline (2017) brought up some engaging trends, “ In fact, in responsible companies 5% of employees say they are willing to accept a decline in compensation. These companies register a 7.5% increase in
Accounting professionals are in very high demand. The nature of work in accounting is so vast an individual would have so many different areas of accounting to choose from. Accounting requires people who can work with complex business structures, computer systems, and financial analysis packages. Accounting work further requires an aptitude for mathematics and the ability to compare and analyze accounting data quickly. Accountants also need to have strong communication skills as they must effectively communicate accounting data to their employers and/or clients. The accounting profession also demands a high level of integrity and morality because the financial data prepared by accountants is used by business managers to run their