Social accounting(also known as social accounting and auditing,social and environmental accounting,corporate social reporting,corporate social responsibility reporting,non-financial reportingoraccounting) is the process of communicating the social and environmental effects of organizations' economic actions to particular interest groups within society and to society at large. [ 1 ]
Social accounting is commonly used in the context of business, or corporate social responsibility(CSR), although any organisation, including NGOs, charities, and government agenciesmay engage in social accounting. Social Accounting can also be used in conjunction with Community-Based Monitoring (CBM). For a Toolkit on Community-Based Monitoring methodology, see www.communitymonitoring.org(Available in English and Dari/Farsi). [ 2 ]
Social accounting emphasises the notion of corporate accountability. D. Crowther defines social accounting in this sense as "an approach to reporting a firm’s activities which stresses the need for the identification of socially relevant behaviour, the determination of those to whom the company is accountable for its social performance and the development of appropriate measures and reporting techniques." [ 3 ]
Social accounting is often used as an umbrella termto describe a broad field of research and practice. The use of more narrow terms to express a specific interest is thus not uncommon. Environmental accounting may e.g. specifically refer to the research or practice of accounting for an organisation's impact on the natural environment. Sustainability accountingis often used to express the measuring and the quantitative analysis of social and economic sustainability.
Purpose
Social accounting challenges conventional accounting, in particular financial accounting, for giving a narrow image of the interaction between societyand organizations, and thus