Article review: An Overview of Legitimacy Theory as Applied Within the Social and Environmental Accounting literature
List of Authors
  • Siti Eva Aman

Keyword
  • Legitimacy Theory, Social Accounting, Environmental Accounting, Article Review

Abstract
  • The Routledge Handbook of Environmental Accounting, a 2020 publication by Taylor and Francis Group, presents a comprehensive overview of environmental accounting. This review focuses on a specific chapter titled "An Overview of Legitimacy Theory as Applied Within the Social and Environmental Accounting Literature." Deegan's chapter explores the definition of legitimacy theory, emphasizing the alignment of a company's values with societal values and the distinction between actual and perceived legitimacy. Notably, the absence of discussion on 'greenwashing,' a prevalent concern, raises questions. The chapter delves into the interplay of social contract and legitimacy theory, introducing the concept of a 'legitimacy gap.' It highlights manifestations through societal shifts and the 'organizational shadow'. Strategies for companies to manage legitimacy are outlined, acknowledging a lack of empirical evidence. Historical perspectives on legitimacy theory in environmental reporting are discussed, critiquing the reliance on outdated studies. Deegan enumerates criticisms of legitimacy theory, suggesting a section title change to 'Gaps in the Literature.' Despite shortcomings, the chapter provides valuable insights for experienced scholars navigating the intricacies of legitimacy theory in environmental accounting.

Reference
  • 1. Deegan, C. (2020). An Overview of Legitimacy Theory as Applied Within the Social and Environmental Accounting Literature. In J. Bebbington, C. Larrinaga, B. O’Dwyer, & I. Thomson (Eds.), Routledge Handbook of Environmental Accounting. Taylor & Francis Group.

    2. Lindblom, C. K. (1993), The Implications of Organisational Legitimacy for Corporate Social Performance and Disclosure, paper presented to the Critical Perspectives on Accounting Conference , New York, April .

    3. Nasi, J., Nasi, S., Phillips, N. and Zyglidopoulos, S. (1997), ‘The evolution of corporate social responsiveness – An exploratory study of Finnish and Canadian forestry companies’, Business & Society, 38 (3): 296 – 321.