Social accounting is commonly used in the context of business or corporate social responsibility (CSR) although any organization including NGOs charities and government agencies may engage in
social accounting.
Theory of
Social Accounting, Journal of Accounting Studies, Second Year, 111-117.
According to Huseyin (1996),
social accounting matrix is simply defined as an unambiguous accounting system where every macroeconomic account is presented as a column for output and as a row for incoming bills.
The idea of CSR is closely connected with the concept of
social accounting and reporting.
In fact, robust
social accounting and responsibility reporting is fast becoming the standard for businesses, not the exception.
The truly incredible thing is that by 2006, 80 of the FTSE 100 [the largest companies on the London Stock Exchange] had
social accounting.
Carmichael's interest in Concert Properties is linked to her interest in the development of
social accounting frameworks that would take account of social and economic benefits and costs, as well as financial risks and returns.
The latest accolades come after Traidcraft collected its third ACCA Award for
social accounting and the announcement that Richard Adams is to receive an honorary doctorate from Newcastle University.
This is a growing trend and means that companies must account for extra-financial concerns more and more, requiring expertise in areas from
social accounting and environmental management to stakeholder dialogue and report development.
The paper reports on the multiplier analysis of comparable
Social Accounting Matrices for Russia and China.
But why should an organisation undertake the lengthy and challenging process of
social accounting, auditing and reporting?
Social Accounting Matrices and
Social Accounting Analysis is nicely surveyed in Chapter 7.
