Climate change accounting and the Australian mining industry: Exploring the links between corporate disclosure and the generation of legitimacy

Abstract

This paper explores how disclosure is used by key bodies in the Australian mining industry as a means to respond to climate change and ensure their social licence to operate. The study utilises a legitimacy theory framework and a multi-case analysis to examine the environmental disclosure practices via a variety of media of two companies and two industry bodies within Australia's mining industry. It is revealed that a combination of legitimising strategies is undertaken by key bodies in the Australian mining industry, however to differing degrees depending on the organisation. There is also support for the notion that different media plays a critical role in facilitating the legitimacy seeking behaviours of the companies and industry bodies. This study extends existing literature on legitimacy theory by highlighting the value of utilising this perspective to explore contemporary phenomena such as corporate responses to climate change. The findings of this study have practical significance as they are expected to have important policy ramifications. One of the differentiating features of this paper, compared to prior studies utilising a legitimacy theory framework, is the examination of legitimising disclosure strategies at an industry level, which complements a company level analysis. Moreover, variations in legitimising disclosure strategies and communication media employed may be due to their focus on differing conferring publics and stakeholder groups. Show more