3.33Let us assume that the government has become concerned that existing disclosure regulation, tends to fixate on the financial performance of organisation but fails to address other aspects of...

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3.33Let us assume that the government has become concerned that existing disclosure regulation, tends to fixate on the financial performance of organisation but fails to address other aspects of corporate performance including a failure to provide information about corporate social and environmental impacts as well as about various initiatives and investments an organisation has undertaken to improve its social and environmental performance.
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3.33Let us assume that the government has become concerned that existing disclosure regulation, tends to fixate on the financial performance of organisation but fails to address other aspects of corporate performance including a failure to provide information about corporate social and environmental impacts as well as about various initiatives and investments an organisation has undertaken to improve its social and environmental performance. As such the government has decides to introduce legislation that will require business corporations to provide information about the social and environmental impacts of their operations as well as the social and environmental initiatives undertaken by the corporations. You are required to do the following:Explain from a public interest theory perspective the rationale for the government introducing the legislation and how the government will ultimately assess whether any proposed legislation should actually be introduced.Predict from a capture theory perceptive the types of constitutions that will benefit in the long run from any social any environmental disclosure legislation.Predict from an economic interest group theory prespective of regulation whether any potential legislation to be introduces will lead to an increase in the accountability of corporation in relation to their social and environmental performance despite any implications that this increased corporate accountability might have for the financial success of large but heavily polluting organisation. 4.28The website of the FASB ( as at early 2009) states that FASB intends : To promulgate standards only when the expected benefits exceeds the perceived costs . while reliable, quantitative cost benefit calculations are seldom possible, the board strives the determine that a proposed standards will meet a significant need and the cost it imposes, compared with possible alternatives are justified in relation to the overall benefits.Do you think that cost...

Answered Same DayDec 20, 2021

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David answered on Dec 20 2021
3 Votes
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The surge of corporate social responsibility reporting in today’s financial markets is gaining
momentum. There has been an unprecedented rise in the number of social and ecological
eporting requirements driven by regulatory bodies and stock exchanges throughout the world
that have played a pertinent role in promoting the field of social reporting. In the last decade, as
melting point emerged as a significiant public policy issue, Ford Motor Company envisaged that
more steps could be taken to achieve fuel economy performance of its vehicles which is
necessary. This reinforced the think tank of Ford senior management that an exhaustive business-
and market-driven strategy to address melting point was instrumental for long-term corporate
success. However, the managers of ford are faced with the dilemma of not only devising such a
strategy, but also thinking how to implement a strategy aimed at making a balance for both the
company and society among the economic, social and ecological needs.
Companies that are socially responsible in making profits also contribute to some, although
obviously not all, aspects of social development. Every company need not be involved in every
sphere of social upliftment. That would be ludicrous and unnecessarily restrictive. But for a firm
to be involved in some aspects, both within the firm and on the outside will make its products
and services (for example financial services) more attractive to consumers as a whole, therefore
making the company more profitable. There will be a surge in cost to implement CSR, but the
positives that these are likely to generate will overwhelmingly outweigh the costs. This is the
ationale behind introducing the legislation.
If one has to explain the scope of CSR and what is meant by “social”, the whole concept behind
it could be summarized in the “triple bottom line” theory (“people, planet, profit”): a business, no
matter whether it’s activities are directly or indirectly ca
ied out, must be evaluated according to
the following criteria’s i.e.: how it deals with its its’ employees, how the environment is affected
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y its activity, and how much profit it makes. It can no longer be viable or admissible – and this
is the root cause of all the controversies that have surfaced about CSR i.e. whether it should be
practiced on voluntary basis or whether an unequivocal law – for an enterprise to revert to social
dumping, forfeiting workers’ rights and the world around us in a sort of global, no-holds ba
ed
ace for maximum profit. This is what will help the government to propose the intended
legislation.
A) Predict from a capture theory perceptive the types of constitutions that will benefit in the
long run from any social any environmental disclosure legislation.
Capture theory can be defined as operating of a legal agency by those bodies, usually the
usinesses of a particular industry, that the body is designed to control. Those industries subject
to economic control that is intended to safeguard the interest of pupil (consumers) invariably find
it constructive to apply influence over the legal agency. One common way of doing this is to
have former or potential employees in the industry who can "temporarily" work for the legal
agency. Thus the constitutions that need to be implemented in the long run are as follows:-
1. The administrators of financial products are required to divulge environmental, social,
and ethical issues that are to be considered while making investments.
2. Developing an action plan for sustainable public procurement, controlling environmental,
sociological, and moral aspects to be taken into consideration.
3. Firms listed on Stock Exchange must divulge any code of conduct that they have
developed on environmental hazards and ways to control those hazards.
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4. The Environmental Protection Act that would require corporate to provide data and
information on hazardous emissions.
5. The government’s “Green Securities” policy that would require firms listed on stock
exchange to disclose about their...
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