Understanding Social Reporting and Auditing in C38SE2
School
Heriot-Watt**We aren't endorsed by this school
Course
ACCOUNTING C38SE
Subject
Accounting
Date
Dec 10, 2024
Pages
2
Uploaded by MegaWhale4190
C38SE tutorial solutionsSocial and Environmental Accounting C38SE2 Tutorial 6Activity 2What is social reporting?Provides information to stakeholders e.g. health and safety, employeewelfare, community engagement, consumer advice and feedback. Originated from ethicalbusinesses e.g. Bodyshop, Traidcraft, Ben & Jerry’s. Who are the stakeholders?Investors, non-governmental organisations (NGOs), businesscustomers, consumers, employees, suppliers, local communities, regulators.What is social auditing?Independent publication of social information. Originators included Which,Social Audit Ltd, Counter Information Services, Council for Economic Priorities. Information alsoprovided by campaigners, investigative journalists and pressure groups. See Social Audit Network(SAN).What are the problems with measuring social value?Different sectors use different indicators;definition of value – subjective, not scientific; indicators used for different purposes e.g. externalreporting, management accounting; no agreement of outcomes e.g. do we punish or rehabilitateoffenders? arbitrary estimates of costs, paybacks, time period and discount rates. Activity 3Choose a social account from the link https://www.socialauditnetwork.org.uk/directory-of-social-auditand answer the following questions:Identify the organisation’s vision/mission/aims/values.Who are the stakeholders?What performance measures are used?Where does the social data come from?Who audited the social accounts?Identify potential benefits of producing the social accounts.oTrains the community on participatory local planning.oEncourages local democracy.oEncourages community participation.oBenefits disadvantaged groups.oPromotes collective decision making and sharing responsibilities.oDevelops human resources and social capital Are there any disadvantages of producing the social accounts?oTime and organisational effort required to set-up social accounting systems.oCost of outside resources such as interviewers and social auditors.oUnless embedded in organisation culture, there is a danger of it becoming a one-offpaper exercise.Page 1of 2
C38SE tutorial solutionsoAchieving recognition by stakeholders and others of the value of Social Audit.oIdentification of, and obtaining views and opinions of non-stakeholders who may bepotential stakeholders.oExclusion of potential participants if the process is made complicated and confusingthrough involvement of professionals.oLack of standards for the Social Audit process and recognised qualifications for socialauditors may damage the credibility of the process.oPerception of organisation manipulating or hijacking stakeholder views.Page 2of 2