1. How can corporate disclosure policy be used to maintain or regain organisational legitimacy?

2. Why would managers decide to voluntarily disclose environmental performance information in an annual report?

3. Stakeholder theory proposes that it is important to harmonise or balance stakeholders needs and expectations. Choose two stakeholder groups and evaluate how a company can balance the views of these shareholders in its dealing with them.

4. You have recently been appointed as a lending officer in the commercial division of a major bank. The bank is concerned about lending in the current economic environment, where there has been an economic downturn. You have been asked by your supervisor to provide a report indicating how you can safeguard the bank against the risks of lending. In your report you should outline how covenants in debt agreements can be used to reduce the risks, what agency problems the bank should be concerned with, and how accounting information can be used to assist in this process.