What is social accounting?
Social Accounting is the type of accounting that the company carries out to place a value on the influence that its operations on the company. It requires businesses to look closely, what it does and what its impact has on people, places and the environment. Social accounting does not deal with the type of assets that financial accounting does; Rather, it focuses on business behavior and what impact it has. Any business can undergo this type of evaluation, regardless of its size.
This process was an accountant of the second part of the 20th century. Its growth as an accounting discipline stems from the pressures that the Environmental Movement placed on large corporations. It also results from the demand of governments and the public that businesses are more transparent regarding the activities and consequences of these activities.rise operations in relation to society and the environment. The company can measure the impact of its chimney emissions on the surrounding region. The company can measure the impact of its community involvement and charity contributions in the city or the city in which it operates.This could measure the efficiency of its recruitment program and whether the program affects the unemployment rate of the region.
Social accounts, unlike financial accounting, try to understand the contributions or lack of their companies in the company. It concerns business behavior that contributes to the well -being of humans and planet. As a result, social accounting is often called social and environmental accounting, social reporting or reporting social responsibility.
Because of its focus, in addition to the aspects of the company's financial reporting, social accounting also goes according to the names of non -financial reports and sustainability accounting. The term sustainability applies to the whole activity of the company. The company can analyze whether it is sustainable as a social, environmental, cultural and financial perspective. Entrepreneurship can also analyze your ability to start and then keep your nodThe ties to carry out its activities in a way that benefits the company.
Social Accounting is a process that can carry out any kind of entity, not just businesses that focus on growth and profitability. This includes government agencies, non -profit companies and charity organizations. Basically, social accounting is responsible for responsibility - requires organizations to introduce practices that contribute to the sustainability of the planet and the overall well -being of humanity.