Legitimation theory of accounting information additional disclosure about the social and environmental activities of the enterprise

Abstract

The need to develop the theoretical foundations of additional disclosure of accounting information about the social and environmental activities of the enterprise has been substantiated. The historical aspects of applying the legitimation theory in accounting have been analyzed. The substantive aspects of the concept of legitimacy, which was formed in social and political sciences, have been considered. The concept of organizational legitimacy based on M.Suchmen’s approach has been revealed. Three types of organizational legitimacy (pragmatic, moral, cognitive) have been analyzed and the role of the accounting system in ensuring their achievement have been revealed. The main problems of organizational legitimacy have been disclosed. The directions of changes in organizational legitimacy under the influence of organizational and social changes have been revealed. Four main strategies for overcoming the problem of loss and restoration of organizational legitimacy have been analyzed. The accounting system’s role in ensuring these strategies’ implementation has been established. The understanding of the means of additional disclosure of accounting information about the social and environmental activities of the enterprise as a source of legitimation has been grounded.

Keywords

• legitimation theory
• organization legitimacy
• integrated and non-financial reporting
• environmental activity
• social activity
• sustainable development