Based on a joint consideration of Media Agenda Setting Theory and Legitimacy Theory,which of the following statements are correct?
A) According to Legitimacy Theory management uses the annual report as a tool to legitimise the ongoing operations of the organisation, and according to Media Agenda Setting Theory the media are able to influence community perceptions about issues such as the environment
B) Community concerns with the environmental performance of a specific firm in an industry will also impact on the disclosure strategies of firms across that industry
C) We should find a relationship between the extent of disclosure of social and environmental issues within the annual report and the media attention given to those issues
D) All of the given options are correct

Question

Quizplus · Accepted Answer

According to Legitimacy Theory, management uses the annual report as a tool to legitimise the ongoing operations of the organisation by disclosing social and environmental issues. At the same time, Media Agenda Setting Theory suggests that media coverage can influence community perceptions about issues such as the environment. Therefore, we should find a relationship between the extent of disclosure of social and environmental issues within the annual report and the media attention given to those issues. Furthermore, community concerns with the environmental performance of a specific firm in an industry will also impact on the disclosure strategies of firms across that industry. Hence, all of the given options are correct.

Based on a Joint Consideration of Media Agenda Setting Theory