In July 2005 many newspaper articles discussed how the fast-food giant McDonalds in Australia was reducing its

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In July 2005 many newspaper articles discussed how the fast-food ‘giant’ McDonald’s in Australia was reducing its use of Australian farm produce

(particularly potatoes) in favour of cheaper overseas imports. A review of McDonald’s Australia’s website (September 2005) revealed a media release entitled ‘Setting the record straight on recent media coverage’. It was presented in a question and answer format. The questions McDonald’s posed to itself were:

Is McDonald’s planning to dump Australian farmers?

I hear McDonald’s is going to import beef and orange juice.

Is it true that McDonald’s doesn’t treat its farmers fairly?

The answers provided to each of these questions indicate that the various concerns were unfounded.

(a) Explain McDonald’s reaction in terms of both Legitimacy Theory and Media Agenda Setting Theory.

(b) Do you think that McDonald’s would be considered to have a great deal of ‘legitimacy’ to protect through such disclosures?

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Financial Accounting Theory

ISBN: 9780071013147

4th Edition

Authors: Craig Deegan, H. Bierman

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