This study will concentrate on the intent of Corporate Sustainability Reporting by mentioning to the Global Reporting Initiative ( GRI ) coverage model. Not merely that, this study besides states the clear differentiation between Stakeholder theory and Legitimacy theory every bit good as their empirical testing. After that, the remainder of this study will discourse about the comparable of two companies on economic, societal and environmental facets.
Based on the GRI coverage model ( Appendix 1 ) , a sustainability study can be defined as the pattern of unwraping, mensurating and being responsible to external and internal stakeholder for the organizational public presentation against the sustainable development end. It can be used to depict coverage on environmental, societal and economic impacts. For illustration, ternary underside line and corporate duty coverage. Besides that, a sustainability study besides provides a sensible and balanced representation of the organizational sustainability public presentation, including both negative and positive parts. The sustainability coverage guidelines made up of the coverage counsel and coverage rules sing specifying the study content every bit good as the quality of the study. It besides contains the counsel for puting the study boundary and the criterion disclosures which include the public presentation indexs. These elements will see in equal importance and weight.
Reporting counsel can be defined as the option that the coverage administration can take action when doing determination on what to describe on. It normally helps the administration to pull off the usage of the GRI coverage model. Besides that, the coverage rules is the coverage procedure that should steer and accomplish the determinations as how to describe on, which topic to be selected and what indexs to describe on. The coverage rules are merely provided for specifying study quality and content. Under study content, there are four rules that should be used together with the counsel which are sustainability context, completeness, stakeholder inclusiveness and materiality. Furthermore, there are besides some rules for specifying study quality which are truth, timeless, balance, dependability, comparison and lucidity. All this rules are the cardinal for the effectual transparence. The sustainability study should include its boundary that the coverage administration will exert over the important influence or control through the operating and fiscal patterns and policies. Significant influence can be defined as the power to take part in the operation and fiscal policy determinations. Whereas control is the power to pull off the operating and fiscal patterns so can obtain the benefits from its activities. Under the readying of the study boundary, the administration has the right non to take to roll up the informations on a certain entity or group every bit long as it will non alter the determination.
The last portion of sustainability coverage guideline is the standard revelations. There are three classs of standard revelations that most administrations use to describe it. The first class is scheme and profile. This class is subdivided into 5 parts which is organizational profile, direction attack and public presentation indexs, scheme and analysis, study parametric quantities, administration, committednesss, and battle. The 2nd class is revelation on direction attack which covers such things as policies, duties and ends. The last class is public presentation indexs that indicators the comparable information on the environmental, societal and economic public presentation of the administration. Social public presentation consists of human rights, merchandise duty, labour patterns and society. It besides can be classified as extra and core public presentation indexs
Critique of Stakeholder Theory
Stakeholder theory can be defined as position that considers the importance for an administration ‘s endurance of fulfilling the demands of its assorted stakeholders ( Deegan 2010 ) . There are two subdivisions of stakeholder theory which are a managerial ( positive ) subdivision and an ethical or normative subdivision ( Deegan 2009 ) . Under the ethical subdivision, all stakeholders have certain intrinsic right that treated reasonably by the administration and this rights shall non be violated. It is besides of import to cognize the definition of stakeholders which is any single or group that can impact or affected by the accomplishment of the house ‘s aims. Stakeholder can besides split into primary and secondary stakeholders. Furthermore, all information about how the house is impacting stakeholders should be supplying to all stakeholders which are secondary and primary stakeholders. This is because they have the rights to hold it, even though they do non utilize the information. Furthermore, the 2nd subdivision of stakeholder is the managerial subdivision. This subdivision is tried to explicate when the company direction will go to to the powerful stakeholders ‘ outlooks. The administration will merely react to those stakeholders which are the most powerful. Besides that, the importance of run intoing stakeholder demands will increase when the degree of stakeholder power is besides addition. Unlike the ethical subdivision of stakeholder theory, the research undertaken under the managerial subdivision can be tested with empirical observation.
Critique of Legitimacy Theory
Legitimacy theory is a theory that posits that administrations ever seek to guarantee that they operate within their society ‘s norms and bounds ( Deegan 2010 ) . Legitimacy theory besides relies on a societal contract between the administration and the society in which it operates. The societal contract is used to stand for the battalion of explicit and inexplicit outlooks that society holds about the behavior of an administration ( Deegan 2009 ) . Unlike Positive Accounting Theory ( PAT ) , legitimacy theory is non depends on the economic based premise which merely determined by wealth maximization and single opportunism. The legitimacy spread is mentioning to the difference between the public outlooks associating to how the society ‘s beliefs on the administration act and how the administration should move. There are two grounds why the legitimacy spread arises which are ; foremost, the society outlook might alter, so the administration does non run into the society outlooks. Second, the once unknown information about the administration becomes available to the populace through the intelligence media.
The Empirical Trials of the Stakeholder Theory
Harmonizing to Alsos, Hytti & A ; Ljunggren ( 2011 ) , Stakeholder theory helps to understand the environment in order to pull off the administration ( Appendix 2 ) . Stakeholder theory allows the administration to take into the external factors that will act upon the development of a Technology Business Incubators ( TBIs ) . Furthermore, the consequences are enlightening in footings of how the stakeholder dealingss alteration and are sometimes the brooder is hard or even impossible to pull off efficaciously. The intent of the brooders is to fulfill the assortment outlooks that seem to be hard to make successfully. However, this intent may take them into a negative downward spiral of fewer incubatees, the loss of experient brooder staff and decreased support. Those stakeholders have the power to move and to fund the brooder. Based on Pfeffer and Salancik ( 1978 ) , there are three schemes for equilibrating different stakeholders which are ; foremost, the brooder directors need to re-explain their ends. Second, the brooder directors should switch the focal point between the stakeholders in order to equilibrating the struggle outlooks. Third, if the support state of affairs for the brooder becomes critical, this shows that the brooder directors might abandon some stakeholders.
The Empirical Trials of Legitimacy Theory
Based on Mobus ( 2005 ) , Mandatory accounting revelations play an of import function in the administration legitimacy ( Appendix 3 ) . If the administration continues to offer positive symbolic representations, they may be given to the higher degrees of environmental regulative. The hazard of harm to legitimacy is besides higher. This because the compulsory accounting revelations for those houses which use the voluntary CSR disclosures as a use device. If the compulsory accounting revelations that positively affect the regulative conformity, they are the possible tools of parks administration and public policy. As a consequence, the consistence in keeping legitimacy is required to understating and patroling the organizational. Besides that, Legitimacy theory predicts the tactics like avoiding the visual aspect of improperness and communicating environmental duty every bit good as the predictable and consistent exchange behavior for keeping the legitimacy position with the matter-of-fact audiences.
Fujifilm Holdings Corporation is Nipponese transnational imagination and photographic company which was established in 1934 with the purpose of bring forthing photographic movies ( Fujifilm Holdings 2012 ) . This company is one of the largest imagination and photographic company in the universe ( CNN Money 2012 ) . Their concern Fieldss are imaging solutions which including picture taking services, supplies and equipment every bit good as information solutions such as entering media, in writing systems, high-performance stuffs, optical devices. Besides that, Canon Inc. is besides Nipponese company that was established in 1937 which is one of the largest corporations in the universe ( Canon 2012 ) . This company is the specializer in fabricating optical and imagination merchandises which including run offing machines, scanners, lenses, cameras, pressmans and camcorders.
Fujifilm Holdings Corporation and Canon Inc. have some similarities on the environmental facet as they have same manner in safe this universe from the planetary heating menace. Harmonizing to the Fujifilm Sustainability Report 2011 ( Appendix 4 ) , Fujifilm tries to cut downing CO2 emanations from the mills and offices through the group cooperation. To accomplish their ends, they are utilizing a cogeneration system at their chief domestic mills. A cogeneration system is a system providing from both heat and electricity. This machine is in the procedure of altering the fuel used system from heavy fuel oil to natural gas as the procedure of cut downing the CO2 emanations. Fujifilm is besides cut downing the CO2 emanations in their offices as they cut down the warming and lighting costs by installed the LED undertaking visible radiations. Fujifilm is used two competitions to derive the employee ‘s consciousness about planetary heating ( Fujifilm retentions 2011 ) . The first competition is Eco-Driving Contest which has positive effects on the concern direction, environment and safety. As a consequence, Fujifilm is succeeded in cut downing the CO2 emanation, the figure of accidents and fuel costs. The 2nd competition is the nature and life exposure competition. The intent of this competition is to promote people to believe about biodiversity and protect the life things and nature for the following coevals.
Besides that, Canon attempts to cut down the environmental load throughout the full merchandise lifecycle by utilizing the ‘Action for Green ‘ undertaking ( Canon 2011 ) . This undertaking means to make new merchandise which are offer better functionality, easier to utilize and more convenient every bit good as to cut down the environmental impact. Harmonizing to the Canon Sustainability Report 2011 ( Appendix 5 ) , Canon Europe and the World Wide Fund for Nature ( WWF ) has been launched the Polar Bear Tracker undertaking which tracks the motions of the polar bears by the orbiter. This information is utile for assorted surveies particularly for those who focused on the polar bear ‘s home ground scope every bit good as ice distribution. Not merely that, the Polar Bear Tracker undertaking besides put attempt in increasing the kids ‘s consciousness and apprehension of planetary environment preservation. Besides that, Canon besides continued support for the Canon Envirothon in North America ( Canon 2011 ) . This shows that Fujifilm and Canon had a positive image which has been advancing their ain undertakings in cut downing the CO2 emanation.
Canon and Fujifilm besides have some different ways how to portray themselves on the societal facet. Harmonizing to the Canon Annual Report 2011 ( Appendix 6 ) , Canon has a few societal activities which are ; foremost, Canon has been supplying support to countries hit by the great E Japans temblor. They donated five portable digital skiagraphy systems to the Japanese Red Cross Society to back up the medical attempts. They besides have a undertaking called a ‘Signal of Hope ‘ that helps the recovery of the fishing industry. Second, Canon Vietnam Co Ltd had a scholarship plan that called as ‘For a Bright hereafter ” . This intent of this undertaking is to promoting and assisting underprivileged pupils to go on analyzing. Third, the coaction of Canon and Kyoto Culture Association is to advance the ‘Tsuzuri Project ‘ which aimed at making high declaration autotypes of turn uping screens and other ancient Nipponese cultural assets. Different from Canon, Fujifilm has established the unvarying criterions for the providers. There are two policies of Fujifilm procurance which are the basic procurance construct and the procurance guidelines. This policy is aimed at guaranting providers conformity with the jurisprudence and the guidelines. Not merely that, Fujifilm besides implementing a self-check study for their providers. The intent of this self-check study is to assisting providers with better apprehension of Fujifilm ‘s basic stance through the procedure of procurance. This shows that the Canon and Fujifilm had a positive image in their societal activities.
In economic facet, Fujifilm and Canon have some differences manner. Harmonizing to the Fujifilm Sustainability Report ( 2011 ) , Fujifilm has extended their concern into the health care concern every bit good as pharmaceutical concern. The pharmaceutical merchandises division has two functions such as uniting the group directions involved in its pharmaceutical concern and spread outing the Fujifilm ‘s pharmaceutical concern. On the other manus, Canon has created advanced imagination engineerings by utilizing all of the proficient expertness every bit good as preciseness and optical engineerings. These engineerings are including ; Leading-Edge imaging engineering for the advancement in medical specialty, prosecuting the betterment of its CMOS image detector and development and using Assorted Reality ( MR ) engineering into the existent universes. The intent of these engineerings is to assist people healthier lives and unrecorded richer. These two companies have a positive image itself.
Legitimacy is a status or position which exists when an entity ‘s value system is congruous with the value system of the larger societal system of which the entity is a portion. When a disparity, existent, or possible, exists between the two value systems, there is a menace to the entity ‘s legitimacy.
In decision, there are some similarities and differences between the Stakeholder theory and the Legitimacy theory which are,