An accounting entity is any organizational unit for which financial and economic data are gathered and processed for the purposes of decision making (Hillman, Kochanek and Norgaard, 1992, p. 15). The purpose of an entity is to work for the good of all the stakeholder groups and obtain funds at favorable rates to create future profits (Boland, 2010, pp. 41-44). •Rights of the stakeholders of an entity.
Stakeholders are individuals and groups that are affected by an organization’s policies, procedures, and actions (Advameg, 2011). The stakeholders include creditors, employees, customers, government bodies, special interest groups and the local community. Stakeholders, such as employees and owners, may have specific legal rights and expectations in regard to the organization’s operations and them include (Boland, 2010, p. 44). the right to equal opportunity and non-discriminatory treatment •the right to security of persons; the rights of workers and their families; consumer rights and protections; and environmental rights and standards •require corporations, within their respective spheres of activity and influence, to promote •encourage corporations to consult with stakeholders and communities about their activities, influence and impact •Our group’s general ethical philosophy.
In addition to being aligned with the ‘Stakeholder’s theory’ and ‘reporting’, Group A’s general ethical philosophy also focuses on sustainable development of an entity, specifically on how organizations need to make commitment to sustainable business practices towards communities. For the reason that reporting and providing information about social and environmental performances of an entity increases the trust that communities have in the organization ( Deegan, 2006).
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