The Accounting theory and practice

ACCOUNTING THEORY AND PRACTICE
Article 2. woollies chairman faces grilling over wages scandal
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Article 2 woollies chairman faces grilling over wages scandal
Financial review, Sue Mitchell 5 Nov 2019
Article 2 woollies chairman faces grilling over wages scandal
Woolworths group is one of the famous retail stores in Australia recently faced a serious
issue regarding underpayment of wages. The chairman of the company Gordon cairns is
going to be grilled by the representatives of the Australian shareholders association about the
fact that when the company came to know about such underpayment of wages that values
approximately $300 million dollars. Further queries have been asked by the representatives
regarding the issue that when million of dollars has been paid to the senior executives
including the chief executive brad Banducci and managing director Clarie Petersa.
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Public interest theory
The public interest theory has several distinct aspects which are supportive on mutual basis.
The three approaches of the public interest theory are the descriptive, instrumental and
normative. The descriptive approach is utilised to explain the nature and the features of the
firm including the factors that how the management is controlling the affairs of the
organisation, how the board of directors follow the guidelines and rules of corporate
activities, and the process of thinking of the managers about managing the affairs of the
company. The instrumental approach uses various data to detect the link that prevail between
the management of the stakeholders’ group and the board of directors. The main concept of
the stakeholders is that the management should give priority in protection of the stakeholders.
The main stakeholders of the organisation are the employees, investors, customers supplier’s
government and the society (Vargas-Hernandez & Gonzalez 2018 P.55-57).
This incident shows the necessity of strict laws in protecting the interest of the stakeholders
and the organisations should not take a casual approach regarding the payment of wages of
the employees. The trade unions all around Australia have take a nationwide campaign in
order to prevent the occurrence of such wage theft in future and they claimed that this
problem should be solved in a systematic manner.
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