A company reporting on its social and environmental performance could be explained by:
A) Legitimacy Theory, if management believed that the report would enhance the company's licence to operate
B) Managerial Stakeholder Theory, if management believed that reporting would influence the perceptions of powerful stakeholders
C) Institutional Theory, if management believed that by reporting they would gain approval from powerful stakeholders
D) All of the given options are correct.

Question

Quizplus · Accepted Answer

All of the given options are correct. Companies may report on their social and environmental performance for various reasons, including to enhance their legitimacy in the eyes of stakeholders and society, to influence the perceptions of powerful stakeholders, and to gain approval from these stakeholders. Legitimacy Theory, Managerial Stakeholder Theory, and Institutional Theory all provide explanations for why companies may engage in social and environmental reporting.

A Company Reporting on Its Social and Environmental Performance Could