Reference no: EM132843662

Let 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 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 hasdecided to introduce legislation thatwill require business corporations to provide information aboutthe social and environmental impacts oftheir operations, aswell as the social and environmental initiatives undertaken bythe corporations.

Required: You are required to do the following:

Problem (a) Explain from a 'public interest theory perspective' the rationale for the government introducing the legislation and how the government will assess whether any proposed legislation should actuallybe introduced.

Problem (b) Predict from a 'capture theory of perspective ' the type of constituents that will benefit in the long run from any social and environmental disclosure legislation.

Problem (c) Predict from an 'economic interest group perspective' whether any potential legislation to be introduced will lead to an increase in the accountability of corporations in relation to their social and environmental performance despite any implications thatthis increased corporate accountabilitymight have for the financial success of large but heavilypolluting organisations.