The theory that sustainability reporting is a means of dealing with the firm's exposure to political, economic, and social pressures is called:

Question

Quizplus · Accepted Answer

Legitimacy Theory suggests that companies report on sustainability in order to maintain their perceived legitimacy and credibility with stakeholders. This theory acknowledges that corporations face pressure from various groups, including governments, consumers, and the public, to behave in socially responsible and sustainable ways. By reporting on their sustainability efforts, companies can demonstrate their commitment to these values and maintain their legitimacy in the eyes of stakeholders.

The Theory That Sustainability Reporting Is a Means of Dealing