Business ethics, role of accountants in policiing and assessment process of social accounting, ethical issues faced by organisations and accountants, development of social accounting issues within organisations

Friday, January 8, 2021

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Social accounting is not another system to be imposed on an organisation it is more an approach, providing a framework which permits the organisation to report on its social performance in the fullest and most effective way possible. Social accounts make use of information which an organisation already gathers, reports which already have to be prepared, and consultations which are already carried out. Gaps in existing documentation and information systems will be identified and new methods of capturing information and gathering stakeholder views developed.


No organisation starts with a clean sheet. All organisations keep records about what they do, abOur staff and volunteers, about their members, about their clients and customers, about training organised, about their members etc. All organisations have records of meetings and produce various reports. This is valuable raw material which can be used in the social accounts. Usually there is much more in the bag than you realise, sometimes tucked away in different departments or different computers and not brought together or only used for one purpose when it could be usefully used to inform others as a part of the social accounting process.


The Five Stages of Social Accounting and Audit


Stage One Introducing Social Accounting and Audit


•What is it?


•Why do a social audit?


•What are the key principles?


•Understanding the jargon


•What do we already do towards a social audit?


•What do others do? history and current practice in different sectors


•Do we want to do it?


•Managing the Social Audit


Stage Two The foundations


•Clarify the social Objectives and the Activities undertaken to achieve them.


•State the Values which underpin the purpose and work of the organisation.


•Prepare a Stakeholder map of the organisation, and


•Identify the Key Stakeholders


•Determine the Scope of the social audit


Stage Three The nuts and bolts Social Book-keeping


•Agree the indicators which will allow performance to be assessed


•Identify what existing records and data can be used


•Decide what new, additional data will be collected and how


•Agree how and when to consult which stakeholders, and about what


•Organise the resources needed to carry out the social book-keeping and the stakeholder consultation


•Produce a Social Accounting Plan and time-table


•Implement the Plan and monitor progress


Stage Four Preparing and Using the Social Accounts


•Draft the Social Accounts using existing information, the data collected and the views of the stakeholders


•Identify the key issues on which the organisation should act


•Review the Objectives and Activities, and the Values


•Set targets for the future


•Review the social accounting process and make necessary adjustments


•Plan dialogue and discussion with stakeholders


•Review the social accounting process and make necessary adjustments


•Plan how to publish (a summary of) the audited Social Accounts to all stakeholders


Stage Five The Social Audit


•Appoint the members of the Social Audit Panel


•Present the social accounts to the Social Audit Panel


•The Panel arranges to verify a sample of the data used;


•Assesses the interpretations given in the accounts; and


•Comments on the quality of the social accounting and reporting


•The Social Accounts are revised in accordance with the Panels recommendations, and


•The Social Audit Statement is issued.


•Publish (a summary of) the audited accounts to all stakeholders


•Continue with the next cycle of social accounting


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