Assume that the government of Australia has become concerned that existing disclosure regulation tends to fixate on the financial performance of organisation but fails to address other aspects of corporate performance, including failure to provide information about corporate social and environmental impacts as well as about various initiatives and investments an organisation has undertaken to improve its social and environmental performance. As such, Australia has decided to introduce legislation that will require business corporations to provide information about the social and environmental impacts of their operations, as well as the social and environmental initiatives undertaken by the corporations. Required: You are required to do the following:

(a) Explain from a public interest theory perspective the rationale for Australia introducing the legislation and how Australia will ultimately assess whether any proposed legislation should actually be introduced. (4 marks)

(b) Predict from a capture theory perspective the types of constituents that will benefit in the long run from any social and environmental disclosure legislation. (4 marks)

(c) Predict from an economic interest group perspective whether any potential legislation to be introduced will lead to an increase in the accountability of corporations in relation to their social and environmental performance despite any implications that this increased corporate accountability might have for the financial success of large but heavily polluting organisations. (6 marks)

(d) That it is argued that the process of the regulation of financial accounting is political in nature? Do you agree or disagree? Explain your answer.