Social accounting and its objectives Social accounting may be defined as identification and recording of business activities reg arding social responsibility. Social responsibility concept is the one of the important concept of m anagement . It is the duty of enterprise to do some social activities for completing their social responsibility . Social accounting is very important tool to measure the performance of any company in view of social responsibility . Company has to make social responsibility income statement and balance sheet . But it is not compulsory to make these statements .
France , UK and USA are the top countries where social responsibility statements are made with other financial statements . In India social accounting is not so popular but some India companies are now focusing on social responsibility and also started to make social report for calculating to total cost and benefits for performing social responsibility .
Objectives of social accounting Main objectives of social accounting are to help society by providing different facilities by enterprise and to record them. We can write them in following points
1. Effective utilization of natural resources
Main objectives of making social accounting is to determine whether company is properly utilize their natural resources or not .
2. Help to employees
Company can help employees by providing the facility of education to c hildren of employees, providing transport free of cost and also providing good working environment conditions .
3. Help to society
Because companies' factories spread the pollution in natural society which is ve ry harmful for society .
So , enterprise can help to society by planting the trees , establishing new parks near factory area. and also opening new hospitals
4. Help to customers
In social accounting this the part of be nefits given by company to society , if company provides goods to customers at lower rate and with high quality .
5. Help to investors
Company can help to investors by providing transparent accounting information to investors . Because of many objectives are related to safeguarding of natural resources so this accounting is also known as Social and Environmental Accounting, Corporate Social Reporting, Cor porate Social Responsibility Reporting, Non-Financial Reporting, Sustainability Accounting
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Social accounting ppt by Gurpreet Singh on Sep 17, 2011
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Social accounting ppt Presentation Transcript
1. SOCIAL ACCOUNTING PRESNTED BY: GURPREET SINGH ASHTANOOR GUPTA 2. INTRODUCTION Social accounting is the process of communicating the social and environmental effects of organizations' economic actions to particular interest groups within society and to society at large. 3. HISTORY Social accounting as an approach began developing in the UK in the early 1970s The Public Interest Research Group established Social Audit Ltd. 4. DEFINITION OF SOCIAL ACCOUNTING "An approach to reporting a firm’s activities which stresses the need for the identification of socially relevant behavior, the determination of those to whom the company is accountable for its social performance and the development of appropriate measures and reporting techniques." -D. Crowther 5. PURPOSE ACCOUNTABILITY MANAGEMENT CONTROL
6. SCOPE FORMAL ACCOUNTABILITY SELF REPORTING AND THIRD PARTY AUDITS REPORTING AREAS AUDIENCE 7. OBJECTIVES OF SOCIAL ACCOUNTING EFFECTIVE UTILIZATION OF NATURAL RESOURCES : HELP TO EMPLOYEES HELP TO SOCIETY HELP TO CUSTOMERS HELP TO INVESTORS 8. BENEFITS Social accounting will provide you with an ongoing record of how your organization or enterprise has developed and changed over t ime. You will get feedback on how things are going from the range of people involved in your organization or enterprise. You will be able to identify the areas where things are working well and not so well—and you can use this information to help continue what you are doing well and make improvements to change what’s not working so well. You will know how well you are achieving your aims and values. You will have a record of what your or ganization or enterprise is doing and the sorts of impacts it is having—information you can use when applying for grants and funding, for reporting on grants, and for promoting what you do. 9. CHALLENGES For small, member-based community organizations and enterprises the biggest challenge is finding a way to regularly carry out social accounting with no staff, no time and no budget! It is therefore important that the social accounting process be as simple as po ssible so that it does not impose too heavy a burden on members. 10. BASED ON THREE STEPS 1) Planning – identification stage 2) Accounting – deciding on the scope and setting up the social accounting System 3) Reporting and Auditing – collecting information and submitted to an 11. Step 1: Scoping The first step is to identify three key elements o f your community organization or enterprise: Values, aims and objectives Activities Stakeholders. 12. Step 2: Accounting Design Collect information Characteristics 13. Step 3: Reporting and Responding Relevant information Results 14. WATERLOO CO-OPERATIVE RESIDENCE INCORPORATED Waterloo Co-operative Residence Incorporated, also known as WCRI Non-profit student housing co-operative located in Waterloo, Ontario, Canada. Elections
What Is Environmental Accounting? Posted by accountingweb on Jan 6 2006 0 9357 printer friendly
Environmental Management Accounting (EMA) is a cover title used to describe different aspects of this burgeoning field of accounting. The focus of EMA is as a management accounting tool used to make internal business decisions, especially for proactive environmen tal management activities. EMA was developed to recognize some limitations of conventional management accounting approaches to environmental costs, consequences, and impacts. For example, overhead accounts were the destination of many environmental costs in the past. Cost allocations were inaccurate and could not be traced back to processes, products, or process lines. Wasted raw materials were also inaccurately accounted for during production. Each aspect of EMA has a general accounting type that serves as its foundation, according to the EMA international website. The following examples indicate the general accounting type followed by the environmental accounting parallel:
Management Accounting (MA) entails the identification, collection, estimation, analysis, and use of cost, or other information used for organizational decision-making. Environmental Management Accounting (EMA) is Management Accounting with a focus on materials and energy flow information, with environmental cost information. Financial Accounting (FA) comprises the development and organizational reporting of financial information to external parties, such as stockholders and bankers. Environmental Financial Accounting (EFA) builds on Financial Accounting, focusing on the reporting of environmental liability costs with other significant environmental costs. National Accounting (NA) is the development of economic and other information used to describe national income and economic health. Environmental National Accounting (ENA) is National Accounting focusing on the stocks of natural resources, their physical flows, environmental costs, and externality costs.
EMA is a broad set of approaches and principles that provide views into the physical flows and costs critical to the successful completion of environmental management activities and increasingly, routine management activities, such as product and process design, capital budgeting, cost control and allocation, and product pricing, according to the EMA international website. EMA offers potential benefits to industry, such as the capability track and managing the flows and use of materials and energy with greater accuracy. The EMA international website reports that accurate identification, estimation, allocation, and management o r reduction of costs is important, too. Environmental performance can be supported and improved by using more accurate and complete information. This information will also improve the measurement and reporting of environmental information to the public. Government can benefit from the application of th ese principles according to the EMA international website. The cost of environmental protection can be lowered on the basis of
industries’ financial self -interest. Industry data can be used to estimate and report environmental performance metrics and financial and environmental and benefits to government stakeholders. These metrics can also be used to effectively affect future environmental policies and regulations. Societal benefits exist also. With the implementation of these principles, energ y, water, and other natural resources can be used more efficiently. The EMA international website reports these principles can help reduce external societal costs stemming from industrial pollution such as environmental control, monitoring, remediation, and public health costs. The nation is divided into 10 Environmental Management System Regions by the U.S. Environmental Protection Agency. The United Nations Division for Sustainable Development promotes EMA. There are several U.S. schools that offer courses and degrees in EMA, including the Environmental Management Systems Institute at the University of Florida an d California Polytechnic’s Orfalea College of Business at San Luis Obispo. Looking internationally, the St. Andrews Centre for So cial and Environmental Accounting Research, at the University of St. Andrews (Scotland), was established in 1 991. The Australian National University offers EMA courses in its School of Business and Informational Management. Japan’s Osaka City University and the Chu o Graduate School of International Accounting offer graduate EMA courses. Kobe Unive rsity, in Japan, offers undergraduate and graduate EMA courses. EMA is an emerging facet of accounting with benefits for industry, government, and society globally. As more companies come to see the environmental impacts in their decision making, the value of EMA will continue to grow.
