The Effect of legitimacy theory in achieving profitability and Essay

The Effect of legitimacy theory in achieving profitability and sustainability in a corporation - Essay Example Social and environment accounting involves communicating the social and environmental effects of the company’s economic actions related to a particular interest group in a society or to the society at large. But what role does the social environment accounting play in determining the performance of a company both in the short and long run. The theory behind the inception of contemporary issues in the accounting field will also be reviewed with focus given to the legitimacy theory (Suchman, 1995). Theories are a scheme or systems of ideas which account for a group of facts or ideas, accounting theories provide a systematic framework for understanding, investigating and developing various accounting practices. Theories are used for evaluating applicability of the current accounting practices. Legitimacy theory assumes that an entity is affected by and influenced the society in which it operates, among other system oriented theories, the institutional and stakeholders theory, an entity has the primary role of ensuring that it discloses information in the relationship among, groups, organisation, the state and individuals for the coon good of the public. According to Drever and McGowan, (2007), the systematic oriented theories were derived from the political Economy theory. â€Å"Political economy is the social, political and economic framework within which human life takes place† (Gray, Owen & Adams, 1996 p.47). It is obvious that entities exist within a society and economic issues affecting such an entity can not be excluded from the political, institutional and social framework within the society. Legitimacy theory ensures that organisations and entities carry out their activities within the legal bounds and norms of their respective societies. Any given society would not condone an entity within it to carry out illegitimate activities because of the repercussion that such activities may bring upon the society. However, bounds and norms are not sta tic as they keep changing with time, thus it is also necessary that an organisation responses to the changing culture and norms within the society in order to continue operating in it smoothly (O’Donovan, 2002). Latest Research ACCA UK Awards for Sustainability Reporting in 2008 recommended that companies should start accounting for their sustainability impacts from both a financial and non financial perspective. The article point out that accounting for social and environment sustainability is a challenge because most of the components of the social environment aspect are abstract in nature. The Centre for Urban and Regional Studies, in New Castle Australia have designed practical guide fro small community organisations and enterprises due to the growing interest in social accounting . The three main steps that authors relate to social accounting are planning, accounting and reporting and auditing. Milne has recently carried out a critical look at positive accounting theory, political costs and social disclosure analysis. The aim of the research was to illustrate empirical evidence in support of the challenges that meet positive accounting theory of social disclosures. Literature Review Mathews (1995), made an inquiry whether social environment accounting is a practical demonstration of ethical concern. He points out that the accounting profession was among the first professions to uphold integrity in its practices. Recently there have been attempts by educational programmes to move the accounting pr

Development of Mongolia in Mining Sector Essay Example | Topics and Well Written Essays - 1750 words

Development of Mongolia in Mining Sector - Essay Example pag.). This paper is intended to review the impact the booming mining industry makes on the overall economic performance of Mongolia, as well as the major opportunities and challenges faced by the sector, which inter alia would determine its future. The paper is organized in three main sections, the first of which provides accounts of the overall size, type and peculiar characteristics of Mongolian economy; the second provides a brief overview of the Mongolian mining sector; while the third section attempt an insight into the broadening horizons of Mongolia’s mining industry. Introduction to Mongolian Economy Following the dissolution of the USSR, Mongolia’s economy experienced both deep recession due to natural disasters and political inaction, and more or less noticeable growth, because of the economic reform, which included free-market orientation and extensive privatization of the dominant state sector (CIA, n. pag.). However, the massive livestock losses caused by severe winters and draughts, compounded by falling prices for the primary sector exports and widespread opposition to the privatization process, resulted in fairly anemic GDP (Gross Domestic Product) growth; between 2004 and 2008, the GDP growth was nearly 9 percent on average, mainly due to new gold production, as well as to high copper prices (CIA, n. pag.). As of 2008, the Mongolian economy suffered both a soaring inflation rate – actually the highest inflation rate in over a decade, reaching almost 30 percent – and an external shock caused by the global financial crisis, with a sharp drop in commodity prices, hence greatly slashed government revenues (CIA, n. pag.). A 236 million-dollar stand-by agreement was reached with the International Monetary Fund in 2009, which assisted the country to emerge from the crisis (CIA, n. pag.). Because of the harsh weather during the winter in 2009 – 2010, a massive loss of livestock occurred once again – this time over 20 % of the total number – doubling the meat prices and consequently shrinking the GDP by 1.9 percent. In 2010, the economy growth was 6.4 percent, while in 2011 – 17.3 percent; these results were mainly obtained by commodity exports in the neighboring countries, on which the Mongolian economy heavily relies (CIA, n. pag.). For example, Mongolia purchases 95 percent of the imported petroleum products and substantial portion of its electricity imports from Russia, while China receives over 90 percent of Mongolia’s total exports (CIA, n. pag.). Besides agriculture, which comprises production of wheat, barley, vegetables and forage crops, as well as horses-, sheep-, goats-, cattle-, and camels-breeding, the Mongolian economy’s main industries include construction, production of construction materials, mining (coal, copper, molybdenum, tin, gold, uranium, etc.), production of food and beverages, as well as processing of animal products; according to data of 2010, electricity production amounts to 4.313 billion kWh, whereas electricity imports are 262.9 million kWh (CIA, n. pag.). As of the same period, the overall industrial production growth rate is estimated at 37.3 % (CIA, n. pag.). According to 2011 data, Mongolia’s GDP is estimated at 13.28 billion dollars. Agriculture contributes 12.9 % of the total GDP, the

Leadership Essay Example | Topics and Well Written Essays - 750 words - 35

Leadership - Essay Example In this regard, this essay gives reasons as to why leaders are nurtured and not born. To begin with, it is logical and well understood by people that human beings are born without any knowledge. In real sense, when infants are born, they hardly posses any skills apart from the ones activated by physiological cues such as suckling milk from their mothers breasts, crying and answering to their calls of nature. According to Shalom, â€Å"Philosopher John Locke gave us ‘tabula rasa’ – blank slate – to frame up his theory that ‘nurture’ and environment is the key influencing factor over a human being† (1). Therefore, it is evident that even learned philosophers acknowledge that human beings are born without knowledge to carry out activities that require logical reasoning. Of more importance, many activities performed by human beings, including those of leadership, require external training for the subjects to learn how to pursue them effectively. According to Concordia University, the emotional intelligence (EQ) of children starts to develop at a tender age before going to school but vary â€Å"depending on each child’s home environment† (1). This indicates that most of the behavioral characteristics observed among children are mostly learned from other people in their environment. Similarly, leadership qualities are developed depending on the environment that one is predisposed hence the reason for different traits observed among leaders. On the other hand, due to the varied needs addressed in different leadership levels, many organizations as well as informal settings requires leaders with specific expertise. Due to the increased competition and limited resources, many organizations are â€Å"shifting toward leadership skills being learned from such divergent sources† (Integral Leadership Institute 1). This is understandable because many leadership opportunities are mainly focused in ensuring effective utilization of resources

Starbucks Essay Example | Topics and Well Written Essays - 500 words - 10

Starbucks - Essay Example Today is the 10th of November; the weather is cloudy here in Prescott Arizona and it is somewhat cold. It is the perfect weather for having a walk in Prescott’s downtown for me; however, unfortunately the same is not true for others. Starbucks is the perfect place for studying for most of my friends because it is quiet, but today its not. Unlike usual, I waited for around fifteen minutes in the line just to give my order; not to mention how long I waited to finally receive my order. Starbucks seems to be experiencing a very busy day today. Before I came to Prescott, I was at Nashville Tennessee studying English as a second language. As I have been told Starbucks is the best place to study, I was eager to check it out and see for myself. I am seeing students at their laptops; however, they are seem to be mentally distracted. They are having trouble concentrating in what they are doing; probably because of the noise that people are creating all around them. Unfortunately, this â€Å"best place to study† is not the best today. The people creating most of this noise are in the ordering line. However, the individuals that are sitting at tables are also conversing loudly, talking on cell phones, laughing. What had really grabbed my attention is a guy setting with a very old man; they look like a father and his son. The father seams to be sad and the son was trying to make him feel better. Seeing them started to stir thoughts in my mind with regards to how I would behave with my own son in the future. Regardless of whether Starbucks Coffee can be considered a good place to study or a good place to concentrate, the fact remains that a large group of people from all strata of society regularly can be seen in such a place. As such, going there to enjoy a cup of coffee or a snack can oftentimes lead one to consider many aspects of the way that people interact. Accordingly, it can

Investment & privet banking Essay Example | Topics and Well Written Essays - 3250 words

Investment & privet banking - Essay Example ts of the developing countries but to those markets that are exposed in high risks because of their structure – for example the USA market is a risky one as USA is a global center of commerce; at the next level, USA has an extremely high export activity which means that appropriate mechanisms need to exist for the management of the relevant funds. Particular reference is made to the USA market because the specific market is closely related with current recession – a phenomenon that led to the need for immediate update of existing investment practices. More specifically, the last decade the firms operating in the US financial sector have promoted a specific investment tool: the sub-prime loans. These financial products were initially considered as an appropriate solution for a high profit; however, the potentials for repayment of the loans on which these products were based were not taken into consideration. At the same time, a specific framework of banking activities wa s formulated: the private banking (or wealth management). Private banking has been a secure (alternative) solution for those investors that would like to increase their wealth through innovative investments decisions and proactive investment planning. Indeed, the private banking helped the market to be kept stable when the recession was initially developed – in early 2008. However, the private banking has a weak point (which is considered also as its advantage): it is provided only to customers with high investment ability (those customers that their wealth is extremely high). When the recession first appeared the private banking, as noted above, helped to minimize – as possible – the effects of the crisis. However, it was soon proved that investors that had chosen the specific mode of banking support had suffered severe financial losses. Managers in the banking sector worldwide started then to integrate the private banking in other sectors of their organization s. The specific issue has

Report on the feasibility of the overseas expansion of acomb tyres in Essay

Report on the feasibility of the overseas expansion of acomb tyres in india - Essay Example The best beneficiaries in this case would rightly be India & China, with Russia just beginning to emerge to becoming a challenger to them in this are. The world has seen similar advances in other domains of trade & commerce as well. Companies today feel pride in declaring themselves as multinational corporations rather than be known more as local or regional players. The tyre industry is one such area, which has seen similar changes. Today major tyre industries like Bridgestone & Dunlop are popular & financially very strong owing to the fact that they are MNCs (Multi National Corporations). But, Yadong Luo (1997) is of the positive view that this must not deter other SMEs (Small & Medium Enterprises) from aspiring to go global as has been cited by Zoltan J Acks (2001). This report is written as an advisory statement to the Acomb Tyres of the UK (which is an SME) as to what are the pros & cons of setting up shop in other countries. In this report, the country under discussion is India. The reasons for selecting this country as the most favorable destination is discussed in the following sections of the report. As the Acomb tyre Industries' major area of production is in the area of agricultural tractor tyres, the report concentrates on analyzing a suitable market for the same type of products. The present section concentrates on what are the reasons for global expansion as also what are the best strategies to initiate such expansions. Examples in support of the argument are discussed in the section that deals with the expansion of Acomb in India. REASONS FOR OVERSEAS EXPANSION & STRATEGIES TO DO SO There is no doubt that Acomb Tyre Industries is established & considerably popular in its native market in the UK with an estimated annual turnover of around 22m. But the following points that are described below outline the prime reasons as to why Acomb should consider a major overseas expansion: Limited Home Market It is a known fact that Acomb industries has won several awards for its unique and innovative products and has earned a solid reputation among farmers and other users of agricultural vehicles in the Northeast England and its surrounding regions. But a point to note is that the tyre market in the UK has been found to become stagnant in terms of growth & the economy. The tyre industry is no longer seen as a major contributor towards the development of the economy as it used to be so previously. Siobhan A Austen (1999) says that a prime reason for this can be attributed to the fact that the amount of sales of tyres on an annual basis; especially in the agricultural sector has reached its optimum levels owing to the limited amount of land available in the UK. Acomb has also been feeling the effect of the limited market, which is one of the company's prime reasons for asking us to prepare this report. The analysis of the prevailing market conditions in the UK have led us to the conclusion that it is time for Acomb to start looking for greener pastures. Better Profit Margins History has shown that today's major companies have come to dominate the market,

Electronic notepad Essay Example | Topics and Well Written Essays - 2500 words

Electronic notepad - Essay Example Elecwrit notebooks will be small in size, portable, simple, customized covering and exclusively for writing purpose. In the start we will only target the Melbourne market however, at later stages we aim to target customer segments from other geographical regions of Australia. We will target the customers based on their income level and profession. Our major target market segments include students and working professionals. We will adopt premium pricing strategy in the beginning however, at later stages we may switch to price penetration strategy. To promote the products we will create a strong marketing campaign in which we will participate in the trade fairs and we will also visit the universities, colleges and companies. We will offer special wholesale packages to the universities and companies in the beginning. The financial information in the report shows that we will require an initial capital of $400,000 to start up the company and in the first year of operations our net profit is expected to be above $90,000. Therefore, we believe that Elecwrit will be a successful venture. Elecwrit offers high quality electronic products to those who are seeking trendy, stylish and easily portable products. We offer our products to a broad spectrum of consumers by offering them at affordable prices. To select the target market, the market segmentation strategy will be demographics market segmentation. The two variables including the income level and profession will be selected to segment the Australian market. Since the company will start its operations from the Melbourne market therefore, at the initial stage only the universities and companies in Melbourne will be targeted. Following table shows the target market of Elecwrit. We aim to target students and professionals with the income level of $5000 and above. The income level represents the individual income and not the household income. Since students