What Is SOCIAL ACCOUNTING? SOCIAL ACCOUNTING Definition & Meaning

Summary

Social accounting, also known as social and environmental accounting or corporate social responsibility (CSR) reporting, is the process of communicating an organization's social and environmental impacts to relevant stakeholders. It is commonly used in businesses, NGOs, and government agencies to promote accountability and transparency. This approach highlights corporate accountability by identifying socially relevant behavior and reporting on it. Social accounting can encompass various practices like environmental accounting or sustainability accounting, which focus on specific areas such as natural impacts or economic sustainability. It aids organizations in independently developing effective CSR programs.

Takeaways

• 📊 Social accounting, also known as social accountability or environmental accounting, involves communicating the social and environmental effects of an organization's actions.
• 🏢 It is commonly applied in corporate social responsibility (CSR) but can also be used by NGOs, charities, and government agencies.
• 🌍 Social accounting focuses on the idea of corporate accountability, emphasizing a company's responsibility to various stakeholders and society at large.
• 📈 It helps businesses develop effective CSR programs that are more impactful than government-mandated initiatives.
• 🔍 Social accounting aims to identify socially relevant behaviors, determine to whom a company is accountable, and develop appropriate reporting measures.
• ♻️ Environmental accounting is a specific type of social accounting, focusing on the organization's impact on the natural environment.
• 🌱 Sustainability accounting is used to analyze social, economic, and environmental factors quantitatively.
• 📝 Social accounting can also be used alongside community-based monitoring (CBM) for greater local engagement.
• 📉 National accounting narrows down social accounting to focus on nations as aggregate units of analysis.
• 💡 Social accounting is an umbrella term covering broad research and practice fields, with more specific terms like environmental and sustainability accounting used for particular focus areas.

Q & A

What is social accounting?

Social accounting is the process of communicating the social and environmental effects of an organization's economic actions to particular interest groups within society and to society at large.

Which organizations can engage in social accounting?

Any organization, including businesses, NGOs, charities, and government agencies, can engage in social accounting.

What is the main emphasis of social accounting?

The emphasis of social accounting is on corporate accountability, identifying socially relevant behavior, determining those to whom a company is accountable for its social performance, and developing appropriate measures and reporting techniques.

How does social accounting relate to corporate social responsibility (CSR)?

Social accounting is commonly used in the context of CSR as it helps organizations report their social and environmental performance, which is a key part of CSR initiatives.

What is the benefit of companies independently developing CSR programs through social accounting?

Companies that independently develop CSR programs through social accounting tend to be more effective than those with government-mandated CSR, as the accountability is driven internally.

What are some other terms related to social accounting?

Social accounting is also known as social accountability, social and environmental accounting, corporate social reporting, corporate social responsibility reporting, and non-financial reporting.

What is environmental accounting?

Environmental accounting refers specifically to the research or practice of accounting for an organization's impact on the natural environment.

What is sustainability accounting?

Sustainability accounting focuses on analyzing the social and economic sustainability of an organization and how its activities impact long-term social and environmental outcomes.

How is social accounting used with community-based monitoring (CBM)?

Social accounting can be used in conjunction with community-based monitoring to involve communities in tracking and reporting the social and environmental impacts of organizations.

Who is Dee Crowder, and how does she define social accounting?

Dee Crowder is a reference in the field of social accounting, defining it as an approach to reporting that stresses the need for identifying socially relevant behavior and determining accountability for social performance.