sosial accounting and environment fix

8/17/2019 Sosial Accounting and Environment FIX

1/21

THE DEVELOPMENT OF SOCIAL

AND ENVIRONMENTAL

ACCOUNTING AND REPORTING I Gusti Ngurah Gotama (135020301111003)

Fibriana (135020301111005)

Nadia Uly Azmia (135020301111007)


2/21

SOSIAL ACCOUNTING AND

ENVIRONMENT

Social accounting (also known as social accounting and

environmental , social reporting company , reporting of

corporate social responsibility , reporting non -

financial , or accounting sustainability ) is the process of

communicating the social and environmental impacts of

economic action organization for the interests of certain

groups in society and for society broad


3/21

THEORY

Legtimacy Theory

legitimacy theory is based upon the notion that there is a

social contract between the society and an organisation !

firm receives permission to operate from

the society and is ultimately accountable to the society for

how it operates and what it does, because society provides

corporations the authority to own and use natural

resources and to hire employees ("eegan #$$%)

Stakeholders Theory

Stakeholders theory is organizational management

and business ethics that addresses morals

and values in managing an organization


4/21

FIRST PHASE HOWARD BOWEN

Howard Bowen is an American economist

historian to inspiring the emergence of social and

environmental accounting

Contributions Bowen with the publication of a

book “Social Responsibility of Businessmen

“in1953

This concept defines social responsibility to set

business goals aligned with objectives and society

values


5/21

SECOND PHASE KEITH DAVIS

Davis introduce writings about can business

afford to ignore its social responsibilities

he has an opinion social responsibility must be

owned by an organization


6/21

US COMMITTEE FOR ECONOMIC

DEVELOPMENT IN 1971

Committee for Economic Development ( CED ) is

a non -profit and non – partisan in USA

CED reports use three concentric circles


7/21

three concentric circles

1. Inner circle of responsibilities

2. Intermediate circle of responsibilities

3. Outer circle of responsibilities

US Committee for Economic

Development in 1971


8/21


DEVELOPMENT IN 1971

Carroll (1979 ) describes the components of the

social responsibility of business organizations

into four categories

1. Economics responsibilities

2. Legal responsibilities

3. Ethical responsibilities

4. Discretionary responsibilities


9/21


DEVELOPMENT IN 1971

Corporate social Performance (CSP)

1. Dimensions categories of social responsibility

2. Dimensions ability to respond (responsiveness )

.3. Dimensions in social issues where companies

involved


10/21

FOURTH PHASE :

MANDATORY WORLD'S FIRST

FRENCH REGULATION

In this phase David’s state that social responsibility of

businessman need to be commensurate with their social

power, then the avoidance of social responsibility leads togradual erosion of social power


11/21

FIFTH PHASE : SOCIALIST

ECONOMIC COLLAPSE

in this phase resulted in stagnant development of social and

environmental accounting, the emergence of regulations on

corporate governance which prioritizes shareholders, and

emerging concepts and framework models of social

accounting and reporting in terms of Socially &esponsible

'nvesting (S&')


12/21

SIXTH PHASE : BALANCE

SCORECARD

This phase is a combination of financial and non-financial

in assessing the performance of the organization There is %

perspective in balance scorecard

o inancial

o *ustomer

o 'nternal business process

o Learning and growth


13/21

Gray (1993) identified the different colours in

accounting sustainability method, these are :

Gray(1993)

Sustainablecost

Natural

capitalinventoryaccounting

Input-Output

Analysis

SEVENTH PHASE :Robert Hugh

Gray


14/21Triple Bottom Line

Planet

PeopleProfit

Eight Phase John Elkington’s

Triple Bottom Line


15/21

Triple bottom Line, The 3 aspects can be achieved with

this following activity :

• e d u c a t i o n , t r a i n i n g , h e a l t h , h o u s i n g , i n s t i t u t i o n a l s t r e n g t h e n i n g ( i n t e r n a l l y , i n c l u d i n g e m p l o y e e b e n e fi t s ) s o c i a l w e l f a r e , y o u t h s p o r t s , w o m e n , r e l i g i o n , c u l t u r e a n d s o o n .

Social Aspect

• E n t r e p r e n e u r s h i p , b u s i n e s s g r o u p s / m i c r o , s m a l l a n d m e d i u m u n i t s , a g r i b u s i n e s s , o p e n i n g j o b s , e c o n o m i c i n f r a s t r u c t u r e a n d o t h e r p r o d u c t i v e e n t e r p r i s e s .

Economy Aspect

• r e f o r e s t a t i o n , l a n d r e c l a m a t i o n , w a t e r m a n a g e m e n t , n a t u r e c o n s e r v a t i o n , e c o t o u r i s m e n v i r o n m e n t a l s a n i t a t i o n , a n d u s e e n e r g y e ffi c i e n t l y .

Environmental Aspect


16/21

Brodshaw dan Vogel (1981) states that there are 3

dimension on the outline of the scope of social and

environmental accounting :

• e ff o r t s a r e c o n d u c t e d b y a c h a r i t a b l e o r g a n i z a t i o n , w h i c h t h e c h a r i t a b l e e ff o r t s a r e n o t d i r e c t l y r e l a t e d

t o t h e n o r m a l a c t i v i t i e s o f t h e o r g a n i z a t i o n

CorporatePhilantrophy

• t h e e ff o r t s o f t h e o r g a n i z a t i o n ' s s o c i a l r e s p o n s i b i l i t y w h i l e p u r s u i n g p r o fi t a b i l i t y a s t h e o r g a n i z a t i o n ' s

g o a l s .

CorporateResponsibility

•

c l o s e l y r e l a t e d t o h o w t h e o r g a n i z a t i o n ' s

r e l a t i o n s h i p w i t h a g o v e r n m e n t t h a t i n c l u d e s t h e p o s i t i o n o f a n o r g a n i z a t i o n w i t h a w i d e r a n g e o f g o v e r n m e n t p o l i c i e s t h a t a ff e c t e i t h e r f o r t h e o r g a n i z a t i o n o r t h e c o m m u n i t y a s a w h o l e .

CorporatePolicy


17/21

NGO CERES ( Coalition for Environmentally Responsible

Economies ) and the United Nations Environment

Programmes ( UNEP ) established the GRI (Global

Reporting Initiative ) , an independent organization which

establish standards for Sustainability Reporting . GRI

guidelines first issued in 1999

The GRI recognize the need for non-financial indicators to

measure a company's impact in terms of sustainable

development and also to assess its overall performance, afactor that contributes to its future profitability.

Ninth Phase : Sustainability Reporting


18/21

GRI G4

The GRI Sustainability Reporting Guidelines (the

Guidelines) offer Reporting Principles, Standard

Disclosures and an Implementation Manual for the

preparation of sustainability reports by organizations,

regardless of their size, sector or location. The Guidelines

also offer an international reference for all those interested

in the disclosure of governance approach and of the

environmental, social and economic performance and

impacts of organizations. The Guidelines are useful in the

preparation of any type of document which requires such

disclosure


19/21

GRI G4

The Guidelines are presented in two parts:

GRIG4

ReportingPrinciples andStandardDisclosures

ImplementationManual


20/21

THE FIRST SECTION

The first part Reporting Principles and Standard

Disclosures– contains Reporting Principles,

Standard Disclosures, and the criteria to be

applied by an organization to prepare its

sustainability report ‘in accordance’ with theGuidelines. Definitions of key terms are also

included


21/21

THE SECOND SECTION

The second part Implementation Manual– contains

explanations of how to apply the Reporting Principles, how

to prepare the information to be disclosed, and how to

interpret the various concepts in the Guidelines.

References to other sources, a glossary and general

reporting notes are also included.

sosial accounting and environment fix

Documents