Advanced Accounting Theory and Practice-Corporate social Coursework

Advanced Accounting Theory and Practice-Corporate social responsibilityCSRtheories - Coursework Example Starbuck engages in CSR due to its continuing commitment to help them contribute to economic development by being responsible to their respective stakeholders (Hancock, 2005, 12). The stakeholder theory maintains that a company should adopt policies that aim at satisfying numerous stakeholders because they are able to affect or are affected by the achievement of the company’s objectives. This theory regards the meaning of good management and how each individual can create value for each other. Starbuck’s involvement in CSR will help in the development of real opportunities for growth. By committing a responsible investment on the sector of the economy, the company is enhancing the social welfare of their stakeholders thereby resulting to economic growth thus enhancing the living standards of the stakeholders (Mullerat & Brennan, 2011, 89). According to integrative theories, a company should engage in CRS in order to integrate demand and concerns by their stakeholders and society because they depend on the society as well as the stakeholders for existence, continuity and growth. A CSR program will help Starbuck in recruiting and retaining employees because potential recruits the competitive graduate student market especially, often look at CSR policies of a company. CSR, therefore, delivers a much more positive perception of Starbuck among its workforce, particularly when they are involved through payroll giving fundraising or community volunteering activities (Hancock, 2005, 15). A company should take into consideration the social or stakeholder demand and integrate them in such a manner that they operate according to social norms and values. This is clearly spelt out by legitimacy theory. The theory states that a firm should operate within rules, norms and beliefs of their respective societies, and this is the reason why Starbuck has decided to pay tax on their British sales which they have been avoiding. They have received a legitimacy threat by