Identify an organizational crisis (e.g., an accident, a product safety/health hazard, or a scandal) and investigate how the organization reacted to by means of information releases (e.g., press releases, annual report, corporate social responsibility report, etc.). Analyze the organization’s reaction to the incident using one or several accounting theories (i.e., positive accounting theory: political cost hypothesis, stakeholder theory, legitimacy theory, institutional theory).
You can use either the organization’s website or the database Nexis àavailable through the Bangor University website (Library Services Nexis UK) to download documents issued by theà Databases àE-Resources organisation.
Please note that
1) the case study can be theoretical so you do not have to use numbers.
2) Two or three theories is enough.
The word limit is 1,500 words (+/- 20%). The case study should include a cover sheet with the same of the module number, case study title, word count and a list of references containing all the materials (books and academic articles, NOT websites) you have consulted and quoted from. References in the references section should be mentioned in the text and vice versa.
Assignment of marks
You need to demonstrate the application of accounting theory to interpret and analyse your data. You are expected to read around the subject and will be rewarded, if you refer to journal articles or other authoritative sources of information to support your argument. References in the references section should be mentioned in the text and vice versa.
References (you do not have to use them)
Ashforth, B. and Gibbs, B. (1990).,The double-edged sword of organizational legitimation, Organization Science, 1(2): 177-194.
Breitsohl, H. (2009). ?Organizational Crises and Reactions from a Legitimacy Perspective ? Results from Two Multiple-case Studies?. Schumpeter Discussion Paper 2009-007. Wuppertal.
Deegan, C. and Rankin, M. (1996). ?Do Australian companies report environmental news objectively?: An analysis of environmental disclosures by firms prosecuted successfully by the Environmental Protection Authority?. Accounting, Auditing and Accountability Journal, 9 (2): 50-67.
Ginzel, L. E., R. M. Kramer and R. I. Sutton: 1993, Organizational impression management as a reciprocal influence process: The neglected role of the organizational audience, in L. L. Cummings and B. M. Staw (eds.), Research in Organizational Behavior (JAI Press, Greenwich).
Hooghiemstra, R. (2000). Corporate communication and impression management, New perspectives why companies engage in corporate social reporting. Journal of Business Ethics, 27 pp. 55-68.
Linsley, P., and Kaj?ter, P.M. (2008). Restoring reputation and repairing legitimacy. A case study of impression management in response to a major risk event at Allied Irish Banks plc. International Journal of Financial Services Management, 3(1): 65-82.
Ogden, S. and Clarke, J. (2005). ?Customer disclosures, impression management and the construction of legitimacy: corporate reports in the UK privatized water industry?. Accounting, Auditing and Accountability Journal, 18(3): 313-345.
Milne, M. (2002). Positive Accounting theory, political costs, and social disclosure analyses: A critical look. Critical Perspectives on Accounting, 13: 369-395.
Patten, D. M. (1992). Intra-industry environmental disclosures in response to the Alaskan oil spill: A note on legitimacy theory. Accounting, Organizations and Society, 17 (5): 471-475.
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