institutional theory explain accounting disclosures

Tutorial 2

1. How might institutional theory explain accounting disclosures?

2. What is a social contract and how does it relate to organisational legitimacy?

3. How can corporate disclosure policy be used to maintain or regain organisational legitimacy?

4. There are two branches of stakeholder theory. How do they differ?

5. How can positive accounting theory explain corporate social and environmental reporting?

6. The standard-setting process is highly political. Describe an accounting regulation that would be politically controversial, and the types of political pressures that could be brought to bear in the standard-setting process.

7. How do you think accounting standards should be set? Is that the approach currently taken by the IASB?

  1. Each of the three theories of regulation discussed in this chapter has its strengths and limitations in describing accounting standard setting, either past or present. What do you believe are those strengths and weaknesses? Provide an example of where you believe each of the theories has applied, or is likely to apply.

Contemporary issue 5.2

Power and duty: is the social contract in medicine still relevant?


  1. What is a ‘social contract’?
  2. The article discusses some of the implied terms of the social contract between doctors and patients. Articulate what these are and discuss how they are currently under threat.
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