Contemporary Issues in Accounting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary issues in accounting
Name of the student:
Name of the University:
Author’s note:

CONTEMPORARY ISSUES IN ACCOUNTING1
Executive summary
The purpose of this report is to discuss about stakeholders theory with respect to Adani Coal
mining operations. The paper aims to highlight about what are the interest of stakeholders and
how they are managed by company. The paper also aims to discuss about how Adani does
conduct its business operations and how stakeholder groups identified get affected by its
operations. Further paper discusses about how indigenous community plays a vital importance in
business operations of Adani mines Queensland.

CONTEMPORARY ISSUES IN ACCOUNTING2
Introduction
Stakeholder theory refers to the management theory that is only concerned with the
matter of morals as well as ethics for running of business (Moriarty 2014)). As per Mitroff 1983,
the original concept of stakeholder theory was in the form of “Stakeholders of Organizational
Mind”. Again Edward Freeman in his book for strategic management mentions about approach
of the stakeholder referring to those groups who are the organizations stakeholders. Further the
theory of stakeholder mentions about the business having aim to maximize its significance for its
stakeholders. The stakeholder theory lays importance on interconnections between business as
well as stakeholders of the business in the form of customers, employees, suppliers or even
investors. The main aim of the businesses is to serve the requirement of stakeholders not only
just the shareholders (Smith and Ronnegard 2016). Freeman’s theory of stakeholder does best
serve and manage the interests of shareholders. As enhancing shareholders wealth is not only the
aim of business in that context several theorists have served with the concept of stakeholders
theory since the year 1980.
Literature review
As per Nordstrom and Alpers (1999) there can be acid rock damage due to quality of water
hazard caused generated through mining operations. Younger, 1995 says that it can also take
place due to natural processes. There has been Association of AMD along with coal mining for
being reported and has been studied in different countries as well. For reference of being-
England (Younger, 1995), USA (Larsen and Mann, 2005), Korea (Chon and Hwang, 2000; Kim
and Chon, 2001), Iran (Shahabpour et al., 2005), Germany (Rolland et al., 2001), New Zealand
(Weber et al., 2006) and South Africa (Geldenhuis and Bell, 1998). It can also be found from

CONTEMPORARY ISSUES IN ACCOUNTING3
research that AMD is source for water pollution being around coal mines and there is
continuation of long lasting mining activities (O’Bara and Estes, 1985). There has been a
research on topic that covers stakeholder management by examination of three different
categories of stakeholders by Donaldson and Preston (1995). Stakeholders can be classified as
either primary or as secondary (Clarkson, 1995: Mitchell et al., 1997). Research says that
stakeholders can also be either internal or can be of external groups which depends on whether
they are originated from inside or from outside of the company (Adelakun & Jennex, 2002,
Scheneider, 2002).
With respect to local indigenous community
Identification of 3 stakeholder groups affected by operations of Adani Coal Mine
operations.
Indigenous community Interaction and negotiation
with stakeholders in
business
Demonstration of ability for
interactions, negotiation
and engagement with
stakeholders in business
Investors Interaction as well as
negotiation of Adani with its
investors would help to know
about its risks and
opportunities. It will also help
to have idea about how
efficient is company’s
Adani should have the ability
to communicate well with its
investors. It should have
proper consultation with them
for future investments
(Hockerts and Moir 2004).