QUESTION 1:

What does the notion of legitimacy and social contract have to do with corporate disclosure policies?

QUESTION 2:

This chapter divided Stakeholder Theory into the ethical branch and the managerial branch. Explain the differences between the two branches in terms of the alternative perspectives about when information will, or should, be produced by an organisation.

QUESTION 3:

Read Accounting Headline 8.6 on p. 381, an article that relates to claimed financial exclusion of some sectors of society. After reading the article:

a) Apply the managerial perspective of Stakeholder Theory to explain whether management would care about the concerns of the charity One Parent Families.

b) If we applied an ethical perspective of Stakeholder Theory, should management care?

c) If society considered that the banks' policies were unreasonable, would you expect the banks to use their annual reports to defend their position (legitimacy)?

QUESTION 4:

In publicly released reports a number of organisations are referring to their 'licence to operate'. What do you think they mean by this, and is there a theoretical perspective that can explain what this term means?

QUESTION 5:

If a major Australian mining company reports record profits, is this profit figure misleading if the same company has polluted various river systems and has emitted various toxic substances into the air, but has not placed a cost on these externalities?