Finacnce

Opportunities on social accounting:

Social accounting is a new area in mid-80s but now we know the important of the social accounting. Nowadays, social accounting developed very fast in the world and many companies recognized that the long- term benefit are most important than the short- term profit. The company that faced the opportunity on social accounting, like as corporate social responsibility (CSR).

“Earlier, CSR was primarily understood as a local concept with a limited sphere of influence, whereby a company’s responsibility was confined to the community in which it operated. Today, it is understood in much broader terms and is about companies adopting and implementing global CSR policies to the benefit of society.”

Opportunity for the companies which adopt social responsibility accounting(SRA) mainly have three points: positive financial implication, enhance the image of the company, company’s ability to develop solution for economic and social problem. First, the SRA disclosures result in the publication of different ideas on environmental issues. This will help the companies have a mature and stable outlook. The economic and social purpose of the corporate is to create and distribute increased wealth and value to all its primary stakeholders groups. Second, most of companies do the CSR activities because they have to do or they cannot survive. They must to built a good image of the company. The companies cannot operate without the society, they must give the people a good imaging. On the other hand is because the intense competition the other companies do the activities if you don’t do it you will loss the market.

The Term Paper on Corporate Social Responsibilty

In the world today, Corporate Social Responsibility (CSR) has become one of the most essential aspects adapted by governments and companies. The concept of CSR normally relates to the firm’s decisions in which would help out towards the company’s growth as well as improving the development of having a better society. The reason CSR has become very important for firms today is to counteract the ...

Companies also can help to solve the social problem especially after the natural disasters. When Wen-Chuan was during the earthquake, many companies over the world give the donation to help the people in Wen-Chuan. These companies kindly help like a brightly sunshine in the people’s heart. The CSR played a important role when the society meet some big problems.

DiGi communication (Telenor), business integration to empower by connecting communities through the key areas of social responsibility, climate change, responsible and safe business practices. Their target is to reduce its “carbon footprint” by 50% before 2012. The company launched “Deep Green Challenge”, a program in which teams from Malaysian universities are competing to design the best program for the use of renewable energy in rural areas with limited energy supply. DiGi set up a great model of doing the environment contribution. Because of these activities will let more people to care the environment problems, and the competitors will also do the same thing like social philanthropy. This is the way to push more companies do social philanthropy help the world better.

Challenge on social accounting

In the developed countries, the corporate social responsibility (CSR) is to be used at large as a method to achieve greater corporate value and enhance competitiveness. A survey( iisd n.d.) is conducted by Envoironics international which involved interviews with 1000 people in 20 countries (including developed countries and developing countries) shows that more than a quarter of people from developed countries buy and sell shares on the basis of a company’s social performance. See figure below:

Percentage of consumers who have punished companies for being socially irresponsible, by region

The Essay on Company Q Social Responsibility

Company Q Social Responsibility Social responsibility is often viewed as an inconvenience that cuts into shareholder profits. An organization that with this outlook on social responsibility is missing a significant opportunity to improve public perception and drive profits. This is clearly the view of company Q. When twice presented with the opportunity to create both social and monetary capital, ...

Region | % |

North America | 42 |

Europe | 25 |

Latin America | 23 |

Africa | 18 |

Eurasia | 10 |

Asia | 8 |

It means that people in developed countries got the concept of the social environmental awareness when they evaluate the company’s value and performance. Therefore I believe that companies in developed countries have the strong willing to take the CSR initiatives as their tools to maintain the company to be sustainable as well as to optimize the financial position.

In Europe ( Tateisi,N n.d), however, implementation of CSR faces a challenge due to the current financial crisis. Peoples begin to doubt about the transparency and trustworthiness of market, and request to company to reform of corporate governance practice. Therefore, Europe enterprises need to come out with a good strategy in order to better implementing CSR and gain the competitiveness in today’s difficult business environment.

As compared with developed countries, enterprises in developing countries have less public pressure to comply with the social responsibility. According to the survey mentioned above, we can see the Asian countries especially developing countries got less discipline pressures when they operate the company. Therefore there are many challenges of CSR in developing countries.

A survey conducted by times of India group (Nilesh R. Berad 2011) shows the challenges to implementing CSR activities in different parts of the country. Nilesh R. Berad listed out some challenges to implementing SRA in India. The first one is the lack of community participation in CSR activities. The lack of knowledge about CSR leads the result of little involvement between company and the community. Therefore, the concept of CSR need extensive promote to the society. The second issue is the need to build local capacities. Unlike many developed countries have a lot of organizations or agencies to assist company to implementing the CSR project; developing countries need to build some local capacities that help to carry out CSR activities. The third challenge is the lack of transparency which leads the result of mistrust between corporation and community. Based on the challenges mentioned above, government can help the firm by developing the CSR code based on the laws and regulations as well as ensuring that the reporting systems are accountable and transparent. Similar challenges appeared in Malaysia as well. According to the research conductced by Nik maheran, Razana juhaida johari and Wan muzlaina wan mustafa study about the social responsibility accounting in Malaysia, we can see several challenges faced by Malaysian company to adopt SRA disclosure.

The Research paper on Should Companies Embrace Social Media

The title of this particular case study is Should Companies Embrace Social Business? There are companies out there that understand the power of social networking. The social networking could occur on Facebook or Twitter. It has been stated, “Over half of all adults visit social networking sites at least once a month, and many of today’s employees are already well versed in the basics of public ...

Such as “lack of legislature, limited budget and knowledge, institutional function or property rights, manager’s attitude, emphasize on shareholders wealth maximization, lack of managers awareness on social responsibility accounting and companies secrecy”. The studies did above are both in developing countries, the similar issues are occurred within the countries. Therefore, we can discover that in developing country, there are a lot challenges that corporations and government need to deal with. To better implementing social accounting, corporations and government can take some actions, like the case in Malaysia, introduction of corporation social reporting award; it can generate social attention to the social accounting’ implementation as well as strengthen the corporate and social awareness of CSR.

Part2: Do you think implementation of Social Accounting in corporate world will be successful?

There are many reasons why it pays for companies, both big business and SMEs (small and medium enterprises) to be socially responsible and be conscious about the interest of the key stakeholders.

“Companies are now recognizing that dealing with environment and social issues can provide business benefits when reputational risk is high and sustainable competitiveness and development becomes a key strategy.” Susan Ariel Aaronson, Senior Fellow, National Policy Association.

In a situation where about half of the world’s 500 biggest economies are corporations, often answerable only to themselves and effectively stateless, then citizens have to rely on corporations’ own internal values and policies to keep them socially responsible. The critical challenge is to make sure that those values are focused on what is best for the key stakeholders, not just shareholders. The increased power of companies and thus, business leaders leads to ever growing expectations from society in large, that company needs “license” from society to operate. With the increased power of companies and the spread of privatization, the private sector is gaining a much bigger role and responsibility for economic development. In this context, the bigger the private sector is, the higher societal expectations and responsibility are. This responsibility is not limited to economic issues but must also include social and environmental progress. The key challenge, particularly for companies in transitional and developing countries is the change in the survival mentality and the culture that emphasizes short-term gains at the expense of moral and societal values. Providing products and services ethically and in a socially responsible manner requires a different mind-set. A mind sets that puts emphasis on “doing things because they are right and not only because they maximize shareholder value”.

The Term Paper on Evaluate the benefits for a company of practicing Corporate Social Responsibility

... strategy to build a good relationship between corporations and their stakeholders has been introduced. Corporate social responsibility (CSR), the concept, has been practiced and developed ... requirements for referencing. Signature of student:________________________________ Date:__25 June 2013___ Traditionally companies focus primarily on gaining profits without regard for the community ...

Pare3: Mandatory versus Voluntary

CSR is deeply connected with values, not with laws. Values cannot be forced, they can be promoted, taught or awaken. Where there is law, there is fraud. If someone is forced to do something, there will always be a temptation to skip the rules. Sometimes fraud cannot be discovered so easily. However, if a company decides not to be socially responsible, it’s more likely that its stakeholders will end up unveiling it and punishing its behavior. If law forces CSR, political and partisan interests will probably interfere. Who wants to leave CSR in the hands of political fights? A soft CSR approach (voluntary CSR plus public promotion) is far more effective than a hard CSR approach (mandatory regulation).

Soft power is in the very soul of corporate sustainability. Voluntary CSR is connected to convictions and commitment. It’s something that comes from inside the company, with a desire to change things and create value. It has a psychological explanation: Mandatory CSR is imposed from outside the company and it may not be perceived as own. Companies have to be able to decide which way they want to go in order to improve their competitiveness. Voluntary CSR is one of the ways. In the end I am convinced that socially responsible companies will be more competitive than those who are not.

The Business plan on Employee Engagement and CSR: TRANSACTIONAL, RELATIONAL, AND DEVELOPMENTAL APPROACHES

This article looks at the relevance of corporate social responsibility (CSR) for engaging employees, including its impact on their motivation, identity, and sense of meaning and purpose. It explores three different ways that companies engage their employees through CSR: a transactional approach, where programs are undertaken to meet the needs of employees who want to take part in the CSR efforts ...

However, the effects of enforcement of mandatory CSR are favorable such as sustainable development becomes higher priority for companies, corruption and bribery lessen, companies’ environmental impacts decrease, and investments in human capital, health and safety increase in the country. In addition, a statutory regulation is needed to standardize the Social Responsible Accounting (SRA), so that comparisons of CSR disclosures can be made to the standard.

Reference

IISD n.d, “Corporate Social Responsibility Monitor” [online] available at: http://www.iisd.org/business/issues/sr_csrm.aspx

Nobuo Tateisi n.d, “Corporate Social Responsibility in Europe Today, and Challenges Facing Japanese Corporations”[online] available at: http://www.keidanren.or.jp/CBCC/en/report/200812observations.pdf

Nilesh R. Berad 2011, “Corporate Social Responsibility – Issues and Challenges in India” [online] available at:

http://www.csrdigest.com/2009/01/from-social-accounting-to-csr/

http://www.engagingcommunities2005.org/abstracts/Holdaway-Marcelle-final.pdf

http://www.cca-institute.org/pdf/Global%20Opportunities%20in%20CSR.pdf