CSR Limited: Application of Accounting Theories - Issues & Analysis

This report provides an analysis of CSR Limited, an Australian company in the building products industry, through the lens of various accounting theories. It examines the company's practices in relation to legitimacy theory, institutional theory, and stakeholder theory, drawing upon information from the company's annual report. The report highlights how CSR Limited addresses environmental and sustainability issues, aiming to demonstrate its legitimacy and commitment to stakeholders. While the company has implemented environmental control measures, the report suggests that their impact on environmental conservation may be limited. Desklib offers a platform for students to access similar solved assignments and study resources.

ACCOUNTING THEORY
AND ISSUE
• Students: Students ID:
• 1. Roshani Hamal 11800167
• 2. Manish Bhatta 11800025
• 3. Sachin Purja Pun 11800036
• 4. Sushil Basnet 11800617

INTRODUCTION
• Corporate Social Responsibility is a business model operating to enhance and contribute
socially, economically and environmentally towards the greater whole society.
• The company which is considered for this assessment is CSR ltd and different theories would
be considered in association with the company.
• CSR Limited’s products are the chief part of the industry which are responsible for creating
homes and buildings. The company has been active in managing the Corporate Social
Responsibility of the business and has been focusing on sustainability, waste reduction and
environmental friendly approach in the activities of the business.

LEGITIMACY THEORY
• Legitimacy theory is a theory which help the corporation to act and perform the day to day
operation by following the rules and regulation of the society and keeping their eye on the
various environmental issues. there are certain rules set by the society and without the
permission of the society business cannot run successfully.
• CSR most successful manufacturing companies that has been providing the quality products to
the people to build safe house across Australia and New Zealand. it was started its business as
sugar refining company but later it has shifted its business towards the manufacturing products
for house.
• The business of CSR Ltd aims to tackle the issues which are related to environment and also
issues which are related to sustainability practices in the business.

INSTITUTIONAL THEORY
• Institutional Theory provides an explanation
about why organisations tend to take on
similar characteristics, form and processes.
• Particular organisational forms might be
adopted in order to bring legitimacy to the
organisation “Institutions are comprised of
regulative, normative and cultural-cognitive
elements that, together with associated
activities and resources, provide stability
and meaning to social life.

SUSTAINABILITY PRACTICES

STAKEHOLDER THEORY
• Stakeholder theory describes about the
association between the organization and
its internal and external environment. This
theory was developed by Edward
Freeman in his book ‘strategic
Management’ in 1984 (Study.com, 2019).
• Stakeholder theory mention that the core
function business is to develop importance
for its stakeholder rather than only for its
shareholder (Stakeholdermap.com, 2019).

CONCLUSION
• The annual report of the company has clearly provided the major information about company
being legitimate, they have provided the various detail information on the customer, employee,
manager, government etc.
• They have been the major companies that used the water, energy, and produce waste. Although
they have provided there plans regarding environmental control it seems that such controls
have minimum impact on the environment conservation