Adv.Accounting Theory and Pract Essay Example | Topics and Well Written Essays - 1500 words

Adv.Accounting Theory and Pract - Essay Example I agree with Adams that the key motivation for corporate social and environmental reporting is to enhance corporate image and credibility with stakeholders. In her article, Adams offers an incomplete reason for what truly affects voluntary corporate social and environmental responsibility reporting. By focusing on the procedure of reporting and corporate outlooks, Adams attempts to find out what influences voluntary corporate reporting. However, similar to most empirical works, the precise reasons or explanations for the studied matter is open to reader interpretation (Harrison, Newholm, & Shaw, 2005, p. 213). According to Adams, variables under the internal reporting procedure comprises of organization chairperson, corporate social responsibility commission, and corporate social reporting (Adams, 2002, p. 224). These factors correspond to the basics of the accounting theory of usefulness. The external factors of corporate social responsibility that Adams uses could likely affect reporting, its level, and value. The significance of every variable differs across organizations and Adams makes this observation in her article. Two aspects that can potentially affect overall trends in corporate reporting are the degree of compulsory disclosure requirements and adjustments in stakeholder outlooks and principles (Thorne, Mahoney, and Manetti, 2014, p. 699). Considering the apparent threat to a company’s legitimacy makes Adams’ assertion about the main motivation of corporate reporting viable (Adams, 2002, p. 244). The article repeatedly calls this threat an organization’s permission to operate. Adams proves that this factor does in fact influence corporate reporting although frequently on a temporary basis. Adams is right about many accounting theories involving SEA and not giving any references to internal corporate factors. The process that Adams explains as which organizations report and the â€Å"attitudes