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Laura Schroedel
on Oct 24, 2024

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Animus Ltd is a mining company operating in Australia. The company has recently developed a new environmental management accounting system. According to institutional theory:

A) the new system is likely to be the result of the Australian culture of being environmentally conscious and the fact that negative environmental impacts can result in significant fines to the company.
B) the new system is likely to be the result of gaining legitimacy and to imitate other mining companies who are 'doing the right thing'.
C) the new system is likely to be the result of stringent government regulations.
D) the new system is likely to be the result of careful, rational, cost-benefit analysis.

Institutional Theory

A theory that examines the extent to which companies can become successful by conforming to the norms and rules of their environmental context.

Environmental Management Accounting System

An accounting framework that integrates environmental and financial information to aid in internal environmental management decisions.

Australian Culture

Australian culture encompasses the social norms, cultural practices, arts, and values of the Australian people, reflecting its Indigenous heritage and influences from immigration.

  • Apply institutional theory to understand the development of management systems.
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Priyanka SundarOct 24, 2024
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