This report discusses the different types of theories of CSR, including the legitimacy and stakeholder theory. It also highlights the importance of incorporating social and environmental reporting in annual reports. The report is relevant for students studying Accounting.
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Running head: ACCOUNTING Accounting Name of the Student: Name of the University: Author Note:
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1ACCOUNTING Table of Contents Introduction................................................................................................................................2 Discussion..................................................................................................................................3 Conclusion..................................................................................................................................4 Reference....................................................................................................................................5
2ACCOUNTING Executive Summary The report presents the different types of theories of CSR. The contrast between the theories have been provided. It put light on the legitimacy and the stakeholder theory of CSR.
3ACCOUNTING Introduction The result of the researches conducted on the guidelines of incorporating social and environment reporting stated to be significant part of annual report. At the time of research it was analysed that the guidelines on the theoretical perception were not there. The research was mainly on the mandatory disclosure those also present the data from financial statement. The users have different approaches of viewing the report. The viewpoint of investors would focus on strategies as well as the financial information (Alam Choudhury& Nurul Alam, 2013).
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4ACCOUNTING Discussion There were certain literature that has explained Corporate Social Responsibilities in different scenario. The definition of CSR were explained as the duties that were on the part of the entrepreneurs to serve the society. Some put forward that the duties calls for legal as well as ethical including other parts for the current period of reporting the financial statement. Therearedissimilartheoriesthatclarifiesdissimilarfeaturesofcorporatesocial responsibility revelation. The legitimacy theory is between the organizations including the society it is operating. This shows that the theory is linked with social contract. The activities need to be legitimated in order to get acceptable in the society.Through, the stakeholder theory it is seen that the theory recommends corporates to be active socially.The focus of legitimacy theory is on society, on the other hand stakeholder theory focuses on to identify some of the selected teams from the society so that they be more manipulative as compared to others (Windsor, 2013).The lessons that is being enclosed by the stakeholder as well as legitimacy theory are accounting that is associated to capitalising knowledge along with environment.Thetwotheoriesarereservedasbalancingalthoughengagedtobeas challenging theories. There uses are reliable on the category of user assembly. Stakeholder theory outbursts top for the corporations who are underneath Multinational Corporation located in those nations who are in emergingperiod. The purpose of releasing its CSR policy for those investors through whom corporation request to attain the affable association (Khan, Muttakin & Siddiqui, 2013).The opposition among the two theories is on explanation the decision-makinginspirationincommandtoreleaseCSR.Socialcontacttheoryis characteristically suitable for managements employed in industrialized budget or nations anywhere secluded properties human rights as well as settlements between separate decision producers are required in an unbiased way, anywhere individuals might employ over and done with others sideways the path, the national, or in supplementary countries, and
5ACCOUNTING somewhere management formulates not produce confrontations between monetary companies in the market place for judgements, possessions, and amenities. Conclusion Corporate sustainability has structured an economic planned authoritative through the possibility to create probabilities sideways with risks for corporations. The difficulty along with imaginable relation between monetary sustainability presentation and non-monetary governance,socialincludingenvironmentsustainabilityperformancehavebeen systematically however inconclusively discoursed in commercial literature.
6ACCOUNTING Reference AlamChoudhury,M.,&NurulAlam,M.(2013).CorporategovernanceinIslamic perspective.InternationaljournalofIslamicandMiddleEasternfinanceand management,6(3), 180-199. Jamali, D., Lund-Thomsen, P., & Jeppesen, S. (2017). SMEs and CSR in developing countries.Business & Society,56(1), 11-22. Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy.Journal of business ethics,114(2), 207-223. Windsor, D. (2013). Corporate social responsibility and irresponsibility: A positive theory approach.Journal of Business Research,66(10), 1937-1944.