SOCIAL ACCOUNTING

Social Accounting

Social accounting

Introduction

Social accounting (also known as corporate social reporting, sustainability accounting or environmental or social accounting) is the process of sharing and communicating the environmental and social affects Company's economic activities towards the society at the macro level or to a particular interest group within society.

Concept of social accounting

The new social responsibilities that appear to the companies, pose increasing informational demands, both from outside and for how to manage the entity. (Yanovsky 2007, Pp. 17-32)The grouping of this data has been called in various ways such as corporate social information, accounting information or social responsibility, social background information, social accounting, etc. In order to homogenize the nomenclature we named social accounting, which includes the information generated by the institution to reflect on the social aspects that can impact their business and are employees issues, social community, environment, ethical issues, among others. There are various definitions and conceptualizations of what is meant by social accounting: Accounting is the art and / or science of measurement and interpretation of activities and phenomena that are essentially economic and social nature. Presentation of financial information about costs and benefits related to the impact of corporate social behavior.

Objectives of social accounting

Prime objective of social accounting is to contribute towards the achievement of social welfare and reduce the negative effects arising from the economic activities carried by the company. The Social accounting intends to provide useful information to shareholders and financial markets, because it can influence the stock valuation. (Ball 2011, Pp. 23.43)The basic user of it is, therefore, the investor. Proponents believe that these positions should not be imposed any requirement on the social responsibility of the entities, since it is considered a misapplication of the funds of shareholders. Maximizing the social satisfaction is achieved through the free market.

Delineating the responsibility established in the targeting of available resources to achieve an increase in profits with a commitment to values and norms prevailing in society. (Agrawal 2002, Pp. 19-31)It is no longer the goal of economic activity is to maximize profit, but has become is to achieve a satisfactory level and appropriate profit so in line with a certain range of social objectives and achieve a consensus between the concerns of groups with different interests (required workers to increase wages and demanding shareholders dividend higher profits claim customers at a low price and higher quality).

Main branches of social accounting

Environmental accounting: accounting ramifications of greater social relevance today. The growing deterioration of the environment caused by human activity is caused primarily by the business activities of industries. This has generated a demand from society for companies to incorporate social accounting standards into their management in order to preserve the social and environmental context in which they operate. (Ball 2011, Pp. 23.43)The human resource accounting: involves the incorporation of the information provided in the accounts of one of the key components of the organization as human capital. The purpose of this is the valuation of human capital of the company and the preparation ...