Chapter 1 Contemporary Issues in Social Accounting Social

Chapter 1: Contemporary Issues in Social Accounting

Social Accounting • Social Accounting, Historical roots • Early Purpose • Social Accountability • Accounting Profession • Accounting Today

Social Accounting Defined • “the preparation and publication of an account about an organisation’s social, environmental, employee community, customer and other stakeholder interactions and activities, and where possible, the consequence of those interactions and activities” (Gray 2000, p. 250). • This is one definition of social accounting. For other definitions see Ramanathan, 1976: Matthews and Perera 1995 and Gauthier et al, 1997. Despite the differences in these various definitions they hold the same premise that organisations owe something to their wider stakeholder groups or community.

Why Study Social Accounting • Recent financial crisis and organisational scandals • Increasing pressure from the media, interest groups and society • Resurrection of financial and business ethics • Corporate Social Responsibility (CSR) and Social Accounting • Increasing rate of public sector fraud, financial crimes and corruption

Accounting Education • Attracts large numbers of students • Available in most Universities • Programmes predominantly focused on the private sector • We focus on – Public Sector – Third Sector – Cooperatives – Family Businesses

Aim • Importance of Social Accounting and Social Audit • Corporate Social Responsibility • Sustainability • Socially Responsible Investments • Role of Social Accounting • Tax Issues

Accountability, Ethics and the Business World • Relevance • Education and Professional Context • Driving Forces • Ethical Behaviour • Codes of Conduct • Professional Integrity

Historical Development of Corporate Social Responsibility and Reporting • Historical Perspective • Dynamics of Social Responsibility • Growth – Driving Forces • Globalisation • Foundations for Chapter 4

Corporate Social Responsibility • Five dimensions to CSR • Theoretical perspectives • Strategic Approach • Implementation issues • Economic Failures

Social Accounting and Sustainability • Sustainability Concept • Triple Bottom Line • Initiatives • Key Organisations • Transparency and Disclosures

Socially Responsible Investment • Socially Responsible Investment Concept • Evolution • Continuing Importance • Legitimacy • United Nations Development Goals • Environmental, Social, Governance Tools • Investment Selection Considerations • SRI Performance

Auditing for Social Aspects • Social Audit – what it is? • Where did social audits come from? • Developments • Three Types – Social, External and Supply Chain • Self-generated Audits • Nature and Scope • Responsibility

Social Accounting and the Public Sector • Difference between Public Sector organisations and other sectors • Social Value • Social Accounting and Democratic Control • Crisis – what crisis? • Initiatives • Challenges

Social Accounting and the Third Sector • Third Sector Nature and Purpose • Failures • Three Key Lenses – The Not-for-Profit Starvation Cycle – Examination of Reporting Frameworks – Governance • Accountability – Upward, Downward, Holistic

Cooperatives and Family Business • Cooperatives defined – Contrasts with other economic sectors • Family Businesses • Governance and Accountability Issues • Organisational Models • Boards – Who governs, roles, relationships, size, selection processes, participation

Taxation and Social Accounting • Objectives and Scope of Taxation • Issues • Context with Social Accounting and Responsibility • Future Directions • Transparency

Tomorrow’s Accounting and Society’s Future • Trends • Revival • Globalisation and Political Uncertainty • Future Directions • Developments

Supporting Materials • End of chapter discussion questions • Mini case studies • Multiple choice questions • Suggested further reading