Social Responsibility Accounting and Social Responsibility Reporting – an effective Overview
Abstract ::
The word social responsibility means to help the society in every manner as well as social accounting is attracting the attention of many industrialists today as a result of industrial growth & economic prosperity of many nations. If an organization has to function effectively and survive, it has to be accountable to the public at a large. Many Indian companies have given “value added statement” and sustainability reports in their annual reports in place of social reporting.
Social accounting is a method by which a firm seeks to place a value on the impact on society of its operations. The effect on society of the packaging it produced share holders, mandatory social disclosure requirement and management’s motivation to improve the firm image more & more corporations of developed countries.
Key words: Social Accounting, Human resource contribution, Foreign Exchange, Multi Perspective
Introduction ::
Social accounting is the measurement and reporting information concerning the impact of entity and its activities on society. Social responsibility reporting has become a integral part of good management in India and abroad. Most of the companies are making efforts to earn customers loyalty through community development schemes, good corporate governance and by engaging stake holders within and outside the company so it is mandatory that managements at all level understand the scope and content of social responsibility so they can make value added contributions towards building the reputation and brand image of the company.
The acceptance of this concept of social responsibility must be reflected in the information and disclosure that the company makes available for the benefit of the various constituents like share holders, community workers, creditors, etc. Every company apart from being able to justify itself on the test of economic viability, will have to pass the test of social responsible entity. Over population, rural development, environmental protection including conversation of resources control of population and provision of clean drinking water.
Definitions:
Social accounting is the application of double entry book keeping to socio – economic analysis.
The national association of accountants defined that it is the identification, measurement, monitoring and reporting of social & economic effects of an institution on society. This debate focused on the nature of corporate social responsibility and gave a rise to the possibility that this responsibility could be discharged through method of social responsibility accounting.
Objectives:
Scope of Social Accounting:
There is some scope of social accounting which is as below.
Problems in corporate social reporting:
When the firm is attempting to report its social activities in the framework of current financial reporting methodology
Objective of the study:
Important disclosure items in Indian firms:
The most significant items receiving the most attention recently in our in our country are as below. Efforts to save energy receiving the most attention recently although reporting of energy receiving conversation is statutory as pre companies in report of board directors rules 1988 u/s217(e) of the companies act 1956 information regarding environment population and control techniques adopted also needs to be disclosed as per the consumer’s protection act it is essential for the companies to offer quality products and services and attend to the companies of the consumers development of human resource is necessary but also for the growth and advancement of the society the quality and quantity of manpower does make great impact on the profitability of an enterprise element in an industry, the particulars of employees required to be furnished pursuant to section 217(2A) of the company’s act 1956 read with the companies rules 1975. Maintenance of adequate foreign exchange has become social obligation of a business enterprise today hence they have to disclose this information pertaining to the next foreign exchange earn by the enterprise.
Principles of Social Accounting:
The Process of Social Accounting and Auditing:
The following are the three stages involved in social accounting.
Suggestions:
The social accounts give the information both qualitative and quantitative to highlight the performance of the company. Social accounts have been audited by an independent social audit panel have more credibility. The information which is audited can be used powerfully to demonstrate not only what the organization has done, but also how it intends to improve. The concept of corporate social accountability and its accounting participles of social responsibility reporting of social enterprise there are no standard norms available for measuring, reporting and evaluating the social performance of a corporate enterprise. There is need to develop one comprehensive model of social accounting which in turn will help in bringing uniformity in reporting. Reporting of the social activities of the firm should always be in the form of social report separately enclosed with the annual report that should take some steps and should make it compulsory.
REFERENCES :
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Prof. Neelam Pandya
Asst. Prof. Government B.B.A College
Shri K.K. shastri Education Campus
Maninagar(E), Ahmedabad-8
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