What does the notion of legitimacy and social contract have to do with corporate disclosure policies?

What does the notion of authenticity and companionable need engender to do with unified revealing policies? Introduction In recent years, corporations feed increasingly utilise their annual reports to voluntarily report discip grade relating to their social actions, oddly those concerning the natural environment (Gray et al.1995). More specifically, corporations bring forth been changing their disclosure policy towards the triple bottom line reporting, where in addition to economic performance, social and environmental issues of the companys performance ar given (Deegan 2002). This has drawn the attention of researchers, and a number of theories have been postulated as to why companies better such(prenominal) information. According to Deegan and Rankin (1999), there is increasing evidence that the for sterilizeingness to make such disclosures may be motivated by an intention to pass the perceptions of the corporation which are held by important group s within union. Furthermore, arrangings capacity use the disclosures as a defend policy when the organisations authenticity is in scourge (ibid). In this study, we will focus on the role of social contracts and organisation legitimacy, and how can these aspects beguile managers policies to corporate reporting. We will first study the underlying literature of legitimacy theory and social contracts.

This will help us envision the importance and the role of social contracts that act as a motivation for managers to voluntary disclose information, and its ability to influence such disclosures. At a after point, we will give empiric evidence supporting (or ! criticising) our findings. Legitimacy theory and social contract Researchers have adapted the system-oriented theories to address the issue of corporate disclosures. The system-oriented theory, as explained by the Legitimacy theory and Stakeholder theory, argues that the organisation is influenced and has influence upon the society it operates. Both Legitimacy and Stakeholder theory derive from a broader situation of political economy theory. As Deegan(2002)... If you want to get a full essay, order it on our website: BestEssayCheap.com

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