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Social accounting - Coggle Diagram
Social accounting
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CSR is a commitment by businesses to behave ethically and contribute to economic development while remaining sensitive to the needs of all of the stakeholders
Stakeholders include the company's workforce and their families as well as the local community and society at large
Companies should make decisions based not only on financial factors but also on the social and environmental consequences of their actions
CSR is built on the foundation of profit - profit must come first followed by the need to comply with all laws and regulations. Before a business considers its philanthropic options, it also needs to meet its ethical duties
A regular evaluation is undertaken to verify organisational commitment to society through independent social audit, certification on standards and compliance and periodic reviews by independent persons or organisations
Social accounting adds value to a company's annual report by providing information about non financial activities and the related costs of business behaviour in society
using feedback from relevant stakeholders, a company can monitor, adjust and plan its activities to achieve and organisations bjectives
While critic argue that CSR distracts from a company's economic role, it is generally considered to increase long term profits through management control and accountability. Management exercises control over the resources and assets of a business
Social accounting can help management to facilitate internal corporate planning and objectives, thus allowing organisations to pursue profits as well as social objectives for a sustainable future
Benchmarking of CSR policy, implementation and effectiveness involves reviewing competitor initiatives and how others perceive competitor CSR strategy as well as evaluating the effectiveness of these policies on society and the environment