Accounting Theory and Applications: CSR Theories Report

This report examines the application of Corporate Social Responsibility (CSR) within the framework of accounting theory. It begins by highlighting the significance of incorporating social and environmental reporting and the lack of theoretical guidelines in this area, focusing instead on mandatory disclosures from financial statements. The report then explores various definitions of CSR and presents different theories clarifying its features. The discussion focuses on the legitimacy theory, which links organizations with the society in which they operate, and the stakeholder theory, which emphasizes the importance of corporates being socially active. The opposition among the two theories is on explaining the decision-making inspiration in command to release CSR. The report concludes by considering the relationship between financial sustainability and non-monetary governance, social including environment sustainability performance.

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
Conclusion..................................................................................................................................4
Reference....................................................................................................................................5

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Executive Summary
The report presents the different types of theories of CSR. The contrast between the theories
have been provided. It put light on the legitimacy and the stakeholder theory of CSR.

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Introduction
The result of the researches conducted on the guidelines of incorporating social and
environment reporting stated to be significant part of annual report. At the time of research it
was analysed that the guidelines on the theoretical perception were not there. The research
was mainly on the mandatory disclosure those also present the data from financial statement.
The users have different approaches of viewing the report. The viewpoint of investors would
focus on strategies as well as the financial information (Alam Choudhury & Nurul Alam,
2013).

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Discussion
There were certain literature that has explained Corporate Social Responsibilities in
different scenario. The definition of CSR were explained as the duties that were on the part of
the entrepreneurs to serve the society. Some put forward that the duties calls for legal as well
as ethical including other parts for the current period of reporting the financial statement.
There are dissimilar theories that clarifies dissimilar features of corporate social
responsibility revelation. The legitimacy theory is between the organizations including the
society it is operating. This shows that the theory is linked with social contract. The activities
need to be legitimated in order to get acceptable in the society. Through, the stakeholder
theory it is seen that the theory recommends corporates to be active socially. The focus of
legitimacy theory is on society, on the other hand stakeholder theory focuses on to identify
some of the selected teams from the society so that they be more manipulative as compared to
others (Windsor, 2013). The lessons that is being enclosed by the stakeholder as well as
legitimacy theory are accounting that is associated to capitalising knowledge along with
environment. The two theories are reserved as balancing although engaged to be as
challenging theories. There uses are reliable on the category of user assembly. Stakeholder
theory outbursts top for the corporations who are underneath Multinational Corporation
located in those nations who are in emerging period. The purpose of releasing its CSR policy
for those investors through whom corporation request to attain the affable association (Khan,
Muttakin & Siddiqui, 2013).The opposition among the two theories is on explanation the
decision-making inspiration in command to release CSR. Social contact theory is
characteristically suitable for managements employed in industrialized budget or nations
anywhere secluded properties human rights as well as settlements between separate decision
producers are required in an unbiased way, anywhere individuals might employ over and
done with others sideways the path, the national, or in supplementary countries, and

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somewhere management formulates not produce confrontations between monetary companies
in the market place for judgements, possessions, and amenities.
Conclusion
Corporate sustainability has structured an economic planned authoritative through the
possibility to create probabilities sideways with risks for corporations. The difficulty along
with imaginable relation between monetary sustainability presentation and non-monetary
governance, social including environment sustainability performance have been
systematically however inconclusively discoursed in commercial literature.

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Reference
Alam Choudhury, M., & Nurul Alam, M. (2013). Corporate governance in Islamic
perspective. International journal of Islamic and Middle Eastern finance and
management, 6(3), 180-199.
Jamali, D., Lund-Thomsen, P., & Jeppesen, S. (2017). SMEs and CSR in developing
countries. Business & Society, 56(1), 11-22.
Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate governance and corporate social
responsibility disclosures: Evidence from an emerging economy. Journal of business
ethics, 114(2), 207-223.
Windsor, D. (2013). Corporate social responsibility and irresponsibility: A positive theory
approach. Journal of Business Research, 66(10), 1937-1944.