Abstract

This study aims to know how community perceptions can influence disclosure policies, know how Legitimacy Theory and Stakeholder Theory can be used to explain why an entity conducts voluntary disclosure, know the meaning of organizational legitimacy and how disclosure in annual reports can be used as a strategic tool to maintain organizational legitimacy, know how the power and information demands of certain stakeholder groups can affect disclosure policies, know the view that a successful organization is an organization that can manage or balance the demands of different stakeholders. An alternative theoretical perspective that answers this question is to use legitimacy theory and stakeholder theory. Gray, Owen, and Adams (1996) stated that a systems-oriented organization and society will allow us to see the role of information in the relationship between organizations, countries,individulas, and groups.