Unregulated Corporate Reporting Decisions

Question: Discuss about the Unregulated Corporate Reporting Decisions. Answer: Introduction: As mentioned in the case study, it can be hereby ascertained that the iconic surf wear giant Rip Curl uses the slave labor in order to manufacture clothes in North Korea. The main idea behind the present case is the breach of the labor laws by the surf wear giant Rip Curl. The investigation by the Fairfax Media reveals the fact that the business practice of sourcing the clothes is not appropriate as the company ships its garments to different retail outlets and markets the same with a false made in China logo. The company has blamed the subcontractors for the practice but the North Korean rebels have complained about the miserable work conditions of the employees of the company. However, the Fairfax Media have produced photos in support of the claim about the suppression of the labor by the company Rip Curl. This in turn have directed the management of the company to declare in public that the company would take up the issues regarding the social compliance seriously and avoid the false statements to the public made through the logo that carried the tag of made in China. The case reflects the unlawful practice where the company diverts a fraction of the production order to an unlawful subcontractor and the process of production is carried out in a ille gal factory and that too in an unlawful nation with the consent of the management. This represents a plain breach of the contracts between the suppliers and the strategies (Ronalds and Raper 2012). Again, the present case study discloses a surprising fact that such a popular Australian company cannot properly track the clothing production within the purview of its own supply. Therefore, the Rip Curl cannot be excused for being unacquainted about the unlawful business practices of the company. Therefore, the management of the Australian company needs to show the seriousness regarding the social compliance and the protection of the human rights by revamping the checks and balances (Weil et al. 2013). Again, the intense examination of the garment sourcing strategies of the Australian companies during the year 2013 disclosed the serious issue related to the killing of hundreds of factory workers in the Bangladeshi garment-making compound. The indepth scrutiny can lead to different revelations regarding the labor exploitation and suppression in the form of payment of lower than minimum wages in different firms (Freedland et al. 2016). Furthermore the process of scrutiny can also hel p in the tracking the process of tracking the supply chain by firms (Pocock et al. 2013). Association of different theories to the case study The two important theories that can be associated to the case study on Rip Curl include the Legitimacy Theory and the Social Contract. The legitimacy theory refers to different principles that the business concerns need to follow in order to make it certain that the entity can perform the operations by abiding the norms as well as bounds of the community (Horngren et al. 2012). According to the legitimacy theory, the corporations intend to carry out actions that are conceived to be legitimate by the community (Weil et al. 2013). However, the business units follow the norms and bounds that are essentially dynamic and transforming (Deegan 2012). Furthermore, the legitimacy theory also depends on the social contract between business firms and the community (Deegan 2012). In this case, there are both the implicit as well as explicit anticipations on the part of both the society and the business units regarding the process of business conduct (Deegan 2012). As per the case study, it can be hereby ascertained that the company Rip Curl has plainly breached the social obligations and at the same time the social contracts. The unethical practices conducted by the management of the Australian surf wear giant reveal the fact that the legitimacy or else the value system of the business concern is not congruent with the established value system of the community (Deegan 2012). The case study thereby aptly describes the situation of oppressing labor and manufacturing in South Korea and the plain breach of the lanour laws by the company (Horngren et al. 2012). The preset section also draws special reference to the empirical evidences of stakeholder theory for evaluation of the given case study on the unethical business practices by the Rip Curl. The stakeholder theory can be categorically divided into two different branches that include the ethical or in other words the moral branch and the managerial branch of the stakeholder theory (Samkin and Deegan 2012). Again, the stakeholders theory put forward the fact that the stakeholders of a business concern need to be treated in a fair manner where the stakeholders can transact with the firms in a proper manner and acquire benefits (Samkin and Deegan 2012). In this particular case, the employees and the worker of the company Rip Curl represent one of the most important stakeholders of the firm (Ronalds and Raper 2012). According to the normative division of the stakeholder theory states that there are several ethical issues that the stakeholder can face while carrying out the operations in the company (Samkin and Deegan 2012). Therefore, the company needs to ensure that the treatment with the stakeholders can follow the ethical principles that in turn can protect the human rights of the labors (Horngren et al. 2012). As per the managerial theory of the stakeholders principle, it can be hereby ascertained that there is immense need on the part of the management of different corporations to mee t different requirements of the different stakeholders (Xiao and Cooke 2012). In this case, the management of the Rip Curl also need to devise strategies to minimize the violation of the social obligations and the oppressions of the labors working in the factories of the company. Therefore, special reference can be drawn to the managerial concept of the stakeholders for evaluation of the present case study. References Deegan, C., 2012.Australian financial accounting. McGraw-Hill Education Australia. Freedland, M., Bogg, A., Cabrelli, D., Collins, H., Countouris, N., Davies, A.C.L., Deakin, S. and Prassl, J. eds., 2016.The Contract of Employment. Oxford University Press. Horngren, C., Harrison, W., Oliver, S., Best, P., Fraser, D. and Tan, R., 2012.Financial Accounting. Pearson Higher Education AU. Pocock, B., Charlesworth, S. and Chapman, J., 2013. Work-family and work-life pressures in Australia: advancing gender equality in good times?.International Journal of Sociology and Social Policy,33(9/10), pp.594-612. Ronalds, C. and Raper, E., 2012.Discrimination law and practice. Federation Press. Samkin, G. and Deegan, C., 2012.New Zealand financial accounting. McGraw-Hill Education Australia. Weil, R.L., Schipper, K. and Francis, J., 2013.Financial accounting: an introduction to concepts, methods and uses. Cengage Learning. Xiao, Y. and Cooke, F.L., 2012. Worklife balance in China? Social policy, employer strategy and individual coping mechanisms.Asia Pacific Journal of Human Resources,50(1), pp.6-22.