Reference no: EM133737707

Question

In the context of the fast-fashion industry, specifically SHEIN, understanding why companies may use Corporate Social Responsibility (CSR) reporting to manipulate public perceptions is crucial. This exploration can be framed using two accounting theories: Legitimacy Theory and Stakeholder Theory. We can uncover companies' tactics to shape public perception by analysing these theories. Legitimacy theory: Legitimacy theory posits that organisations seek to operate within the bounds and norms of their respective societies. According to this theory, companies engage in CSR activities and reporting to legitimise their operations and maintain societal approval. Example of tactics under legitimacy theory: 1. Selective disclosure: - Case example: SHEIN might selectively disclose only the positive aspects of their CSR initiatives, such as their contributions to environmental sustainability or charitable donations, while omitting any negative impacts or controversies. - Manipulative tactics: By highlighting their positive contributions, SHEIN can create an image of social responsibility and ethical business practices, even if these initiatives represent only a tiny part of their operations. This selective disclosure can distract the public from more significant issues like labour practices and environmental degradation. 2. Symbolic actions: - Case example: SHEIN could launch high-profile CSR campaigns or partnerships with well-known environmental or social organizations