DANCEST 805 Lecture Notes - Lecture 2: Stakeholder Theory, Sustainability Accounting, Financial Statement
Document Summary
Introduction: firms, especially the large multinational corporations, are being challenged to behave in an environmentally sustainable and socially responsive manner while maintaining and improving shareholder value. Information needed by various stakeholders: stakeholders: information on the environmental and social impacts of business operations as well as on measures to benchmark corporate social and environmental performance. Little research on what motivates corporations to pursue different sustainability strategies, and how managers implement effective management control systems to achieve sustainability. 1: managers must consider external impacts on the sustainability of public goods. Iirc: materiality: focus on the organization"s ability to create value in the short, medium, and long run (financial, manufactured, intellectual, social, human, and the natural capital) And csr reports issued by firms committing to higher financial reporting quality provide more effective and credible signals to investors about firms" future performance. Institutional theory: external social institutions constrain firm behaviour by defining legal, moral, and cultural boundaries (regulative, normative, cultural-cognitive)
