Important Role of a Justifiable Facet | Study

Added on -2020-02-19

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Running head: CONTEMPORARY ISSUES IN ACCOUNTINGContemporary Issues in AccountingUniversity NameStudent NameAuthors’ Note
2CONTEMPORARY ISSUES IN ACCOUNTINGTable of ContentsPractical Motivation...................................................................................................................2Theoretical Motivation...............................................................................................................3Literature Review and Hypothesis Development......................................................................5Base of Legitimacy Theory........................................................................................................5Responses to legitimacy problem...............................................................................................6Legitimacy Problem or else crisis..............................................................................................6Societal Concern (climate change score for the nation).............................................................7References..................................................................................................................................9
3CONTEMPORARY ISSUES IN ACCOUNTINGIntroductionLegitimacy is a comprehensive perception or else supposition that the actions of a particularbusiness entity are essentially desirable, appropriate within certain socially constructedsystem of standards, beliefs as well as definitions. Legitimacy theory can be considered asone of the most important theories within the social as well as environmental accounting area.In essence, the novel economic, social as well as environmental challenges directcorporations and the government to abide by the regulations, values, standards and norms andto willingly divulge social as well as environmental information in a bid to investigate theirconformity. The present study explains legitimacy theory that can play an important role of ajustifiable facet for the disclosure of specific environmental information. Practical MotivationNowadays corporations are the primary source of emissions of carbon and carbon footprintsare day by day rising. Reports reveal that the CO2 emissions in Australia per capita areregistered to be 16.35 metric tons recorded during the year 2013. Australia’s NationalGreenhouse Accounts keep track of regional emissions during the period 1990 and onwardsmeet the reporting commitments specified under the United Nations Framework Conventionon change of climate, track advancements as against commitment of emissions reduction ofAustralia and inform makers of policy as well as the public(Abs.gov.au 2017). Analysis ofenvironmental reports reflect the fact that the emissions are mainly due to the electricity,direct combustion, transport, fugitives, industrial procedures, agriculture, waste, land usechange as well as forestry (Fernando and Lawrence 2014). However, emission during the year 2030 is projected to roughly around 592 MtCO2 -e,which is essentially 0.5% below the ones recorded during the year 2005. This is primarily dueto rising awareness and higher social concerns for the environment. Lanis and Richardson
4CONTEMPORARY ISSUES IN ACCOUNTING(2016) asserts that societal concerns for the environment has also escalated and governmentregulations as regards emissions of carbon. Corporations are also under growing pressure todisplay their level of commitment to lessening their contribution to alterations in climate toavert further increase in directive (Mousa and Hassan 2015). The International panel onclimate change introduced during the year 1988 by the World Meteorological Organisation aswell as the United Nations Environmentalso declared that the overall warming of the climatesystem is essentially unequivocal and it is hereby very likely that the emissions of the greenhouse gases from diverse human actions have led to increase in the global temperaturewitnessed since the period of 1990s. Thus, it can be hereby said that the greenhouse gasemissions of Australia have steadily amplified between the period 1991 and the year 2008. Australia has certain emission control procedures and policies in place to lessen the overallgreenhouse gas emissions by no less than 5%. Analysis of policy trends show that the currenttrend in Commonwealth Emission Control Policy laid emphasis on the mandated expansionof the overall amount of electricity generated by diverse renewable resources, development ofemission offsets, energy efficiency measures (Noronha et al. 2014). Furthermore, thisincludes imposition of fuel emissions, provision of financial incentive, continued financing ofresearch and development exercises and continued participation in worldwide change inclimate. Theoretical Motivation As rightly indicated by Rogowski (2015) worldwide financial crisis along with instability ofthe overall financial markets create pressure on the corporation to re-assess the value systempresent. This also helps to emphasize the significance of legitimacy. Prior academic theoriesreflect that legitimacy theory is for a moment observed as a plausible illustration ofmanagerial motivations without any genuine effort to determine the way a disclosure might

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