Accounting Research Project (Adoption of Sustainability Reporting and Social Accounting by ASX Listed Companies)

Running head: ACCOUNTING RESEARCH PROJECT
Accounting Research Project
(Adoption of Sustainability Reporting and Social Accounting by ASX Listed
Companies)
Name of the Student
Name of the University
Author’s Note

1ACCOUNTING RESEARCH PROJECT
Table of Contents
a) Application of Theories and Accounting Knowledge in Developing Research Idea. 2
b) Application of Regulatory, Sustainability and Ethical Issue Related to Research
Idea............................................................................................................................ 2
c) Research Objective, Research Aim and Research Questions..................................3
d) Development of Research Framework...................................................................3
e) Information Sources............................................................................................... 4
References................................................................................................................. 5

2ACCOUNTING RESEARCH PROJECT
a) Application of Theories and Accounting Knowledge in Developing
Research Idea
This assessment is based on the research idea named
“The Adoption of
Sustainability Reporting and Social Accounting by the ASX Listed Companies”. It
needs to be mentioned that different types of accounting theories are associated
with the application and adoption of sustainability reporting and social accounting
by the business organizations. These theories are Agency theory, Signalling theory,
Legitimacy theory and stakeholder theory. Agency theory states that the additional
data and information is disclosed by the companies on voluntarily basis for reducing
cost of agency and this data includes data related to social responsibility.
Revelation of corporate social responsibility related activities assists in providing
the key stakeholders such as investors and financiers with a more precise valuation
of the firms (Frias‐Aceituno, Rodríguez‐Ariza and Garcia‐Sánchez 2014). According
to signalling theory, voluntary disclosure is used by the organizational mangers that
include revelation of social responsibility and the exploitation of irregularity for
sending signal showing the firm’s good performance (Antonia Garcia-Benau, Sierra-
Garcia and Zorio 2013). As per the legitimacy theory, preparation of sustainability
repost works as a social contract between the environment, the firms and the
society in which the business operations take place and it provides the companies
with the legal legitimacy for owning and using natural resources and exploiting
human resources and considering the required laws and regulations (Higgins and
Larrinaga 2014). According to the stakeholder theory, the organizational managers
are needed to recognize and report changes in the environment among the external
and internal stakeholders (Fernandez-Feijoo, Romero and Ruiz 2014).
b) Application of Regulatory, Sustainability and Ethical Issue Related to
Research Idea
The issues associated with sustainability reporting and social accounting is
crucial issues that have been considered by the key stakeholders of the companies.
As per the concept of sustainability reporting and social accounting, companies are
required to identify the risks and opportunities associated with sustainability and
social accounting (Magee
et al. 2013). However, the issue is that not all the