Social Accounting.
Social accounting may be defined as identification and recording of business activities regarding social responsibility. Social responsibility concept is the one of the important concept of management . 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 state
Social Accounting (more strictly defined as Social Accounting and Audit) establishes a framework for ongoing monitoring, evaluation and accountability to stakeholders both internal and external to the organisation.
Objective 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 children 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 very 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 benefits 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 .
step to be followed in social Accounting
Step 1 Planning: In the first stage of Social Accounting, the organisation clarifies its mission, objectives and activities as well as its underpinning values. It also analyses its stakeholders through completing a ‘stakeholder map’. These exercises help the organisation to make explicit what it does, why and how it does it, and who it works with and whom it seeks to benefit.
Step 2 Accounting: In this phase, an organisation decides the ‘scope’ or focus of the social accounts, especially if it will build a comprehensive picture over time. The organisation then sets up ways of collecting relevant information over a period of time to report on performance and impact against its values and its objectives, encompassing both quantitative and qualitative. The information is then brought together and analysed.
Step 3 Reporting and auditing: The information that was collected, collated and analysed in Step 2 is brought together in a single document, which serves as a draft of the social accounts. People from outside the organisation (a Social Audit Panel) then review this document to check that the report is based on information that has been properly gathered and interpreted. When the Panel is satisfied with the report and its findings, the organisation can make its report available to the stakeholders and wider public in full or as a shorter summary.
Social Accounting and Audit is really about examining the ‘social, environmental and economic’ performance and impact of an organisation. There are a variety of key terms which are included in the glossary as part of the new, revised manual.
Social accounting may be defined as identification and recording of business activities regarding social responsibility. Social responsibility concept is the one of the important concept of management . 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 state
Social Accounting (more strictly defined as Social Accounting and Audit) establishes a framework for ongoing monitoring, evaluation and accountability to stakeholders both internal and external to the organisation.
Objective 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 children 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 very 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 benefits 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 .
step to be followed in social Accounting
Step 1 Planning: In the first stage of Social Accounting, the organisation clarifies its mission, objectives and activities as well as its underpinning values. It also analyses its stakeholders through completing a ‘stakeholder map’. These exercises help the organisation to make explicit what it does, why and how it does it, and who it works with and whom it seeks to benefit.
Step 2 Accounting: In this phase, an organisation decides the ‘scope’ or focus of the social accounts, especially if it will build a comprehensive picture over time. The organisation then sets up ways of collecting relevant information over a period of time to report on performance and impact against its values and its objectives, encompassing both quantitative and qualitative. The information is then brought together and analysed.
Step 3 Reporting and auditing: The information that was collected, collated and analysed in Step 2 is brought together in a single document, which serves as a draft of the social accounts. People from outside the organisation (a Social Audit Panel) then review this document to check that the report is based on information that has been properly gathered and interpreted. When the Panel is satisfied with the report and its findings, the organisation can make its report available to the stakeholders and wider public in full or as a shorter summary.
Social Accounting and Audit is really about examining the ‘social, environmental and economic’ performance and impact of an organisation. There are a variety of key terms which are included in the glossary as part of the new, revised manual.
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