The corporate social reporting (CSR) theory that social reporting is a means to deal with the firm's exposure to political, economic and social pressures is called the:

Question

Quizplus · Accepted Answer

The correct answer is legitimacy theory. According to this theory, organizations use CSR reporting as a means of legitimizing their activities in the eyes of their stakeholders, including the general public, consumers, employees, and government regulators. By providing information about their social and environmental performance, companies hope to maintain their social license to operate, avoid reputational damage, and prevent regulatory intervention. In other words, they see social reporting as a way of responding to external pressures and demonstrating their credibility and responsibility. The other options (government accountability, depletable resource, stakeholder theory) do not adequately capture this aspect of CSR reporting.

The Corporate Social Reporting (CSR) Theory That Social Reporting Is