Essay on Contemporary issues in acounting

Submitted By maheshkum20
Words: 1540
Pages: 7

Due Date: 28/10/13
2000 Words (20%)
10-15 References
Group research assignment
Use a theoretical framework of your choice to explain or predict the corporate social reporting (CSR) practices of five ASX listed companies in Australia and 5 listed companies in another country. Your analysis of CSR practices will be based on an examination of the most recent general purpose financial reports of the relevant companies.

1.1 Introduction
This essay endeavours to explain the corporate social reporting practices and the motivations behind such practices of 5 predominant software companies in Australia, and five listed software companies in India. An examination of the company’s most recent general purpose financial reports for the relevant company’s was conducted, and were subsequently analysed to objectively evaluate CSR relating to business operations and values of each organisation. The legitimacy theory was the most predominant framework applicable to each of the software companies, thus the essay has been based on its theoretical perception. The essay also investigates the strategies in reporting social responsibility in legitimising their activities to stakeholders.
1.2 Literature Review
1.3 Background CSR Reporting – countries in Australia
“Behaving in a socially responsible manner is increasingly seen as essential to the long term survival of companies. (3rd article) Smith (2002, p 42) defines Corporate Social Responsibility (CSR) as the integration of business operations and values whereby the interests of all stakeholders, including customers, employees, investors, and the environment are reflected in the organization's policies and actions. (3rd article) It can also be defined as the obligation of the firm to use its resources in ways to benefit society, through committed participation as a member of society, taking into account that society at large, and improving welfare of society at large independently of direct gains to the company (Kio et al, 2001, p 287) (3rd article)
“on a wide range of issues, organizations are expected to behave responsibly. A successful CSR strategy has to be context specific for each individual business, for example, what are the specific CSR issues to be addressed and how to engage with the stakeholders (2nd article)
“Social responsibility disclosures include, among other things, disclosures relating to the interaction between an organization and its physical and social environment. Social responsibility reporting may include information about environment, energy consumption, human resources and community involvement.” (1st article)

1.4 Identify and Justify choice of theoretical framework “Legitimacy is a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definistions (suchman, 1995, p574, as cited in article 6)
“organisations seek to establish congruence between the social values associated with or implied by their activities and the norms or acceptable behaviour in the larger social system in which they are a part. In so far as these two value systems are congruent we can speak of organisational legitimacy. When an actual or prominent disparity exists between the two value systems there will exist a threat to organisational legitimacy.” (6th article)
“in examining the history of CSR by Australian software organisations, the study has two objectives: firstly, to determine whether a similar history of CSR is apparent in the Indian Software industry, and second, to discover whether the pursuit of corporate legitimacy appears to have been a primary rational for disclosures of software companies” (5th article)
“Legitimacy theory is based on the idea that in order to continue operating successfully, corporations must act within the bounds of what society identifies as socially acceptable behavioiur: (4th article)
“Normative legitimacy theory is…