In: Accounting
a)
Explain what accountability means for an organisation in relation
to legitimacy.
•
b) Can accountability be achieved in a critical theory framework?
•
c) Explain the idea of a ‘social contract’ and its relationship to the
legitimacy discussion and sustainability reporting.
•
d) Can accountability be linked to stakeholder theory (and stakeholder
engagement)
a) Firstly we need to understand the fact that What is Accountability and legitimacy,
Accountability is an assurance that an individual or an organization will be evaluated on their performance or behavior related to something for which they are responsible. Corporate accountability involves being answerable to all an organization's stakeholders for all actions and results.
Legitimacy basically refers to the conformity to the law or to rules, it is basically the fact of being allowed by Law or done according to the rules of an organisation or an activity.
So, basically when it comes to accountability for an organisation in relation to legitimacy, it means that an organisation is responsible for its actions and decisions affecting its employees shareholders and all those related to the organisation.
There are various laws and regulations which have been drafted for an organisation which an organisation needs to adhere to such as there should not be minor employees working in the organisation,
So if an organisation does not adhere to any such rules and regulations, it will be held responsible for any such action taken by the organisation.