SOCIAL ACCOUNTING: A METHOD OF ASSESSING THE IMPACT OF NIGERIAN ENTERPRISES DEVELOPMENT ACTIVITIES
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SOCIAL ACCOUNTING: A METHOD OF ASSESSING THE IMPACT OF NIGERIAN ENTERPRISES DEVELOPMENT ACTIVITIES
SOCIAL ACCOUNTING: A METHOD OF ASSESSING THE IMPACT OF NIGERIAN ENTERPRISES DEVELOPMENT ACTIVITIES CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE
STUDY
Social accounting as an approach began developing in the U.K
in the early 1970s, when the Public Interest Research Group established Social
Audit Limited. This organization carried out, and publicized investigations
into the operations of large public companies, without necessarily gaining
their permission or co-operation. Whilst lending support to consumer pressure,
there is an argument that this had a negative effect on accountability, as
organizations sought to ensure that sensitive information was hidden from such
investigations.
Globalization has brought with it a wide realization that
companies do not operate in isolation, but can have marked impacts on the
environment and people at local, national and global levels, (Chris, 2006:1).
This has led to an increasing awareness of Corporate Social Responsibility
(CSR) and the “triple bottom-line” of business success measuring the business
not only in the financial performance, but by its social and environmental
impact as well. Traidcraft and the New Economics Foundation (NEF) pioneered a
form of social accounting in the early 1990s that is voluntary in nature and
rooted in engagement with stakeholders. This can assist organizations, both
commercial and NGO, in understanding and improving their social impact.
The concepts of Social accounting is growing in recognition
and sophistication, as it becomes one of the foundations of good practice in
corporate social responsibility (CSR), interest is growing within large
corporations, consultancies and voluntary organization alike. If large
companies are using a social accounting methodology to assess their social
impact, the question sensibly arises as to whether this is something that can
be usefully adopted by those seeking to assess the impact of enterprise
development activities. Most of the organizations that adopt this concept are
concerned with poverty reduction and enterprise development.
Social accounting is a way of demonstrating the extent to
which an organization is meeting its stated social or ethical goals, whilst
independently verified the organization itself on the process of data
collection and analysis and the process is driven by indicators, the
organization sets in consultation with stakeholders as opposed to being based
on standards or criteria determined externally. This is balance by the
principle of benchmarking which whilst still developing, should enable
organizations where possible, (Chris, 2006:2).
Technically, the term “social accounting or social audit”
refer to specific parts of a process now bestowed with the much more unwieldy
title of “Social and Ethical Accounting, Auditing and Reporting” (SEAAR). In
practice, the shorter titles tend to be used interchangeably to refer to the
entire process. Whichever title that is used, the process should involve the
following three steps:
Internal data collection and analysis procedures,
(accounting)
An independent audit of the result (auditing).
A mechanism for disseminating the outcome more widely
(reporting).
One of the leading voices in the world of social accounting
is ISEA, which is the institute of social and ethical accountability. This
leading voice was founded in the UK in 1996. ISEA is an international
professional body committed to strengthening social responsibility and ethical
behaviour of the business community and non-profit organizations. ISEA promotes
best practice in SEAAR and develops standards and accreditation procedures for
professionals in the field. It was ISEA that further developed the social accounting
methodology first employed by Traid craft in 1993 and launched the
Accountability 1000 (AA1000) standard in 1999.
Rose (1997:163), observed that social accounting is a system
of record keeping that reports transaction between the principle sectors of the
economy, such as: households, financial institutions, corporations and units of
government. As more organizations got involved in the field of enterprise
development with social accounting, auditing and reporting, the question that
will arises is as to how this relates to our traditional understanding of
impact assessment? The question provides the answer that Social accounting
“provides a comprehensive and systematic framework for accounting, auditing and
reporting against an organizational social objective.
SOCIAL ACCOUNTING: A METHOD OF ASSESSING THE IMPACT OF NIGERIAN ENTERPRISES DEVELOPMENT ACTIVITIES
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Social accounting as an approach began developing in the U.K in the early 1970s, when the Public Interest Research Group established Social Audit Limited. This organization carried out, and publicized investigations into the operations of large public companies, without necessarily gaining their permission or co-operation. Whilst lending support to consumer pressure, there is an argument that this had a negative effect on accountability, as organizations sought to ensure that sensitive information was hidden from such investigations.
Globalization has brought with it a wide realization that companies do not operate in isolation, but can have marked impacts on the environment and people at local, national and global levels, (Chris, 2006:1). This has led to an increasing awareness of Corporate Social Responsibility (CSR) and the “triple bottom-line” of business success measuring the business not only in the financial performance, but by its social and environmental impact as well. Traidcraft and the New Economics Foundation (NEF) pioneered a form of social accounting in the early 1990s that is voluntary in nature and rooted in engagement with stakeholders. This can assist organizations, both commercial and NGO, in understanding and improving their social impact.
The concepts of Social accounting is growing in recognition and sophistication, as it becomes one of the foundations of good practice in corporate social responsibility (CSR), interest is growing within large co.. accounting project topics
SOCIAL ACCOUNTING: A METHOD OF ASSESSING THE IMPACT OF NIGERIAN ENTERPRISES DEVELOPMENT ACTIVITIES