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Question - Accounting for corporate social responsibilities

QUESTION 1: For each of the following theories, outline how we could use the theory to explain managements' motivations concerning their operating and reporting strategies:

(a) Legitimacy theory

(b) Stakeholder theory (managerial branch)

(c) Institutional theory

QUESTION 2: If you were undertaking a research project to investigate whether an adverse environmental event negatively affected the legitimacy of a company, how might you confirm an actual erosion of legitimacy has occurred?

QUESTION 3: Explain the limitations of our accounting system with respect to sustainability reporting.

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