MAA310 - Accounting and society | Report

Running head: ACCOUNTING AND SOCIETY
Accounting and Society
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1ACCOUNTING AND SOCIETY
Executive Summary:
This report aims to arrive at a valid solution as to whether Woolworths limited should
continue operating the gaming structures in Australia. The agency theory approach as well as the
stake-holder theory approach is discussed regarding whether the company should really stop the
operations of the gaming machines. Finally possible alternatives to the solution are discussed
based on the findings.

2ACCOUNTING AND SOCIETY
Table of Contents
Introduction:....................................................................................................................................3
Agency theory approach to determine whether Woolworths Limited needs to continue operating
gaming machines in Australia:........................................................................................................3
Arguments for the motion:...........................................................................................................4
Arguments Against the motion:...................................................................................................4
Stakeholder theory approach to determine whether Woolworths Limited needs to continue
operating gaming machines in Australia:........................................................................................5
Arguments for the motion:...........................................................................................................5
Arguments Against the motion:...................................................................................................6
Conclusion and Recommendations:................................................................................................7
References:......................................................................................................................................9

3ACCOUNTING AND SOCIETY
Introduction:
Woolworths Limited is a major Australian organisation having immense retail interest
throughout Australia and New Zealand. It is the second largest organisation in terms of revenue
after Wesfarmers in Australia and New Zealand. The organisation owns 75% of the Australian
Leisure and Hospitality Group, which operates above 12,650 poker machines in Australia
(Woolworthsgroup.com.au 2017).
Hence, the first section of the report aims to discuss the approach of agency theory for
ascertaining whether Woolworths Limited should carry on with the gaming machines in
Australia. The company should also abide by the corporate relationship strategy it has developed
as well as the corporate responsibility strategy it has brought out for the year 2020.
The current report aims to evaluate the probability of operating gaming machines in
Australia on the part of Woolworths Limited. Depending on the company strategies as well as
objectives it needs to be understood that the image of the company should not be destroyed in
any way.
Agency theory approach to determine whether Woolworths Limited needs to continue
operating gaming machines in Australia:
The agency theory approach is basically the association between the agents in a business
and the business principles. The agency theory deals with solving issues that remain inherent in
the relationships of the agency due to the unaligned goals as well as several aversion level risks
(Bosse and Phillips 2016).