Professional Documents
Culture Documents
1. Introduction
Rationale: Why corporate management might elect to voluntarily provide
particular information to parties outside the organisation. (Page 250 & 251)
Gray, Owen and Adams (1996):
Legitimacy Theory and Stakeholder Theory are two theorietical perspectives
that have been adopted by a number of researchers in recent years. The
theories are sometimes referred to as systems-oriented theories.
Within a systems-based perspective, the entity is assumed to be influenced
by, and in turn to have influence upon, the society in which it operates.
Within both legitmacy theory and Stakeholder theory, accounting disclosure
polices are considered to constitute a strategy to influence the
organisations relationships with the other parties with which it interacts.
legitimacy.
Attempt through communications, to alter the definition of social
legitmacy so that it conforms to the organisations present practices,
output and values.
Attempt through communications, to become identified with symbols,
values or institutions that have a strong sense of legitimacy.
industry will also impact on the disclosue strategies of firms across that industry
(consistent with Pattern, 1992 Legitimacy Theory) and;
C
the media are able to influence community preceptions about issues such as
the environment (from Media Agenda Setting Theory). (Exhibit 8.3 Laws denies