Analyze Emerging Issues In Accounting Textbook

Analyze emerging issues in accounting textbookfin

Written Assignment - analyse emerging issues in accounting Textbook: Financial Accounting Theory 4E by Craig Deegan, published by McGraw-Hill Education Rubrics: Insightful and thorough analysis of all the problems/questions. Ideas are clearly presented, interesting and show understandings of content and a new take on the subject. Focussed and demonstrates depth and accuracy of understanding. Excellent ability to summarise and interpret multi-sourced data, to appraise evidence, evaluate arguments and to formulate and express very sound conclusions. Makes appropriate, insightful and powerful connections between the issue/problem and the theory.

Evidence of broad, systematic and creative research. Demonstrates skilful use of high quality, credible, relevant sources. Selection of sources goes beyond the mainstream literature. An excellent summary of relevant data. Wide range of sources accurately reference using Harvard Referencing style.

Outstanding ability to construct a sound and consistent argument. Concise writing style totally lacking in verbosity of any form. Well-constructed assignment: appropriate, clear, and smooth transitions; arrangement of organisational elements seems particularly apt. Uses sophisticated sentences effectively; usually chooses words aptly; observes professional conventions of written English and report format; free of spelling, grammatical, punctuation and typing errors. Question 2 (Marks =15) around 900 words ‘Resources giant BHP Billiton has been convicted of breaching mines safety legislation over the death of a worker at a Port Headland site more than four years ago.

In a decision yesterday after a trial which included hearings in South Hedland and Perth, Magistrate Peter Malone found BHP had contravened the Mines Safety and Inspection Act by exposing Andrew Terrance McLaughlin to a hazard that resulted in the 52-year old’s death. Mr. McLaughlin, a father of three, was crushed under a scissor lift at a Nelson Point workshop. Submissions on the penalty are scheduled for March 19.’ Required: Assume you have been appointed by BHP Billiton to formulate a strategy to respond to the comments provided in press report given above. Explain the strategies you would adopt assuming you are a supporter of Legitimacy Theory.

Paper For Above instruction

In the wake of the recent legal conviction of BHP Billiton for breaching mines safety legislation following the tragic death of worker Andrew Terrance McLaughlin, it becomes imperative for the company to develop a strategic response grounded in Legitimacy Theory. Legitimacy Theory posits that organizations continually seek to ensure their activities are perceived as legitimate by society, aligning their operations with societal norms, values, and expectations. Applying this framework, BHP's response should aim to restore its legitimacy, reinforce public trust, and demonstrate genuine commitment to safety and social responsibility.

First and foremost, BHP needs to adopt a comprehensive communication strategy that openly addresses the incident and acknowledges societal concerns. Transparency is essential under Legitimacy Theory; therefore, the company should issue detailed statements explaining the circumstances surrounding the incident, the findings of the trial, and the steps already taken or planned to prevent future occurrences. This openness can help mitigate perceptions of concealment or denial, which could further erode legitimacy.

Secondly, BHP must demonstrate accountability through tangible corrective actions. This entails reviewing and strengthening safety protocols across all operations, not merely complying with legal requirements but exceeding them. Publicly committing to increased safety investments, employee training, and independent safety audits aligns with societal expectations that corporations act responsibly. These actions signal that BHP values human life and health, which are core societal values, thereby restoring legitimacy.

Thirdly, community engagement is vital in rebuilding trust. BHP should actively involve local communities, workers, and safety watchdogs in dialogue and decision-making processes. Initiatives such as safety workshops, consultations, and community forums can serve as platforms to showcase BHP's commitment to transparency and social responsibility. These participatory approaches foster social acceptance and help BHP align its operations with community values, bolstering its legitimacy in the eyes of society.

Moreover, BHP needs to implement and publicly communicate a clear plan for organizational reform focused on safety culture. Leadership should be visibly engaged in promoting safety as a core value, perhaps through campaigns, safety performance metrics, and leadership accountability. Demonstrating that safety is embedded into organizational priorities affirms societal expectations and enhances BHP’s legitimacy as a responsible corporate citizen.

From a broader strategic perspective, BHP should seek to build long-term legitimacy by integrating sustainability and corporate social responsibility into its core business practices. Publishing sustainability reports, obtaining third-party safety certifications, and aligning corporate objectives with global safety standards signal to the public and regulators that BHP is committed to responsible resource management and worker welfare.

In summary, BHP Billiton's strategic response to the incident and the associated media coverage should be rooted in Legitimacy Theory by fostering transparency, accountability, community engagement, organizational safety reforms, and sustainability initiatives. These strategies can help BHP regain societal trust, demonstrate its commitment to social expectations, and ultimately restore its legitimacy as a leading resource corporation dedicated to responsible operations and worker safety.

References

• Deegan, C. (2014). Financial Accounting Theory (4th ed.). McGraw-Hill Education.
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