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9) Corporate social responsibility (CSR) considers which of the following theories more relevant for sustainability reporting?...

9) Corporate social responsibility (CSR) considers which of the following theories more relevant for sustainability reporting? A) Positive Accounting Theory and Legitimacy Theory B) Stakeholder Theory and Legitimacy Theory C) Stakeholder Theory and Positive Accounting Theory D) Social Contract Theory and Legitimacy Theory

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Answer #1

Option B is the correct answer. As CSR cant stick on one theory, it has to see from macro level and on broader scale, both Stakeholder and Legitimacy theory are considered together.

Legitimacy theory emphasises that an organisation continually attempts to ensure that it is perceived as functioning within the bounds and norms of the society in which it operates. Whereas, the stakeholder theory is concerned with the link between an organisation and its different kinds of stakeholders that collectively constitute the organisation's society

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