Toward a More Coherent Understanding of the Organization-Society Relationship: A Theoretical Consideration for Social and Environmental Accounting Research

    Authors

    J. C. Chen;R. W. Roberts

    Comments

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    Abbreviated Journal Title

    J. Bus. Ethics

    Keywords

    legitimacy theory; institutional theory; resource dependence theory; stakeholder theory; social and environmental accounting research; RESPONSIBILITY DISCLOSURE; STAKEHOLDER THEORY; LEGITIMACY; PERFORMANCE; DIRECTORS; INTERDEPENDENCE; BOARDS; SIZE; Business; Ethics

    Abstract

    In this study we analyze the overlapping perspectives of legitimacy theory, institutional theory, resource dependence theory, and stakeholder theory. Our purpose is to explore how these theories can inform and be built upon by one another. Through our analysis we provide a broader theoretical understanding of these theories that may support and promote social and environmental accounting research. This article starts with a detailed analysis of legitimacy theory by bringing some recent critical discussions on legitimacy and corporations in the management literature into accounting research. The notion forwarded by legitimacy theory then serves as an overarching concept to examine the relationship between and among theories. We conclude that two theoretical considerations are important for future social and environmental accounting research. First, it must be acknowledged that some business entities initiate social activities based on direct interactions with stakeholders, whereas others may also undertake similar activities to manage their societal level of legitimacy. Second, from analyzing the perspectives of legitimacy theory, institutional theory, resource dependence theory, and stakeholder theory, it is possible to reach compatible interpretations of business social phenomena, and the selection and application of these theories should depend upon the focus of study.

    Journal Title

    Journal of Business Ethics

    Volume

    97

    Issue/Number

    4

    Publication Date

    1-1-2010

    Document Type

    Article

    Language

    English

    First Page

    651

    Last Page

    665

    WOS Identifier

    WOS:000284853200010

    ISSN

    0167-4544

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