Received Apr 30; Accepted Feb The use, distribution or reproduction in other forums is permitted, provided the original author s or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice.
Social Audit Network and global networks Historical roots The first use of the term "social audit" is generally attributed to George Goyder in the s. The roots of the idea lay within the perceived need at that time to make business more accountable to the community, and to ensure that the impacts of business — both beneficial and non-beneficial — are understood by society.
Goyder links the growing importance of social audit to the need for society to be able to exert the controls and influence over corporations as they globalise - which in the past could be exerted by local communities over local companies operating locally: In an economy of big business These centre on the financial viability and profitability of the individual economic enterprise.
By contrast, social audit proposes a broader financial and economic perspective, reaching far beyond the individual enterprise Social audit posits other goals as well as, or instead of, financial profitability Moreover social audit attempts to embrace not only economic and monetary variables but also — as its name suggests — social ones, including some which may not be amenable to quantification in monetary terms" Geddes M"The Social Audit Movement" in Accounting in context reporting: Investigative reporting into the usually negative impacts of corporations and other institutions on people, on the local community and on the environment.
These forms of "social audit" were pioneered by Social Audit Limited in the s. Social Audit Limited published a number of reports on various companies in the early s. Social Audit Vol 1 No.
This is a tradition which is continued today, not least by the magazine, Private Eye. During the industrial restructuring of the UK economy in the s and s several local authorities, often in association with trades unions, commissioned reports into the likely impact of plant closures on local communities.
As pressures built during the s about the impact of industry on Accounting in context environment, standards began to be developed requiring companies and others to report on likely and actual environmental impacts.
The growth of interest in ethical investment led to the need to uncover and better understand just what corporations do and how they use the funds invested in them. The "watchdog" role was taken forward by such organisations as the Ethical Investment Research Service and Ethical Consumer.
Consumers themselves became more conscious of how their patterns of consumption can affect the actions of corporations and even governments, as the protests about genetically-modified food in the UK testify. The movement of corporate social responsibility CSR saw companies begin to shift from simply doing "good" things in the community to embrace the notion of improved accountability to stakeholders and the need to explain themselves, if only to maintain a "licence to operate".
The idea of "stakeholders" which has permeated language and thinking has opened up an understanding that all organisations affect far more people than was perhaps realised in the past and that these stakeholders have a legitimate right to at least know what is going on, if not to have some influence.
The introduction of the concept of "best value" in the UK re-introduced the legitimacy of recognising "softer" outcomes as well as "hard" outputs at the same time as making it more essential that there is some way of accounting for and reporting on that "softer" performance.
The community sector was early in the field of developing practical and workable methodology for social accounting and social audit. In Scotland, Strathclyde Community Business Ltd SCB recognised the need to understand, account for and report on the social benefits of the community businesses which were being established in the s throughout Scotland.
Much of this work was based on "Measuring Social Wealth" by John Pearce and published by the nef c This model was piloted in the early s and was developed by the Social Enterprise Partnership into the Social Audit Toolkit "Social Audit Toolkit", Freer Spreckley, Social Enterprise Partnership and used within the community sector, especially in the context of a number of transnational European programmes.
In the s both ICOM and Community Business Scotland CBS included a social audit clause in the model constitutions which they were offering to the co-operative and community enterprises they advised. It was quite common practice in the UK for community-based organisations to include the commitment to do social accounting and audit within their constitution.
In UK legislation created a new form of social enterprise structure, the Community Interest Company, which requires such companies to report annually on their community and social benefit.
From to the practice of social accounting and audit expanded in the community sector. The Scottish model which consisted initially of eight stages was tested in the early s with community enterprises in Lothian Region in Scotland and also with worker co-operatives in Nottinghamshire. In a major conference was held in Edinburgh called "Counting Community Profit" which examined in plenary and workshop sessions the needs and methods to assess social and ethical performance.
The Liverpool, later Merseyside, programme ran continuously until with over people completing the OCN course. A continuing series of training workshops was organised around the country and further clusters supported in Fife, in Castlemilk Glasgow and in Easterhouse Glasgow.
This Manual proved to be highly popular and has been used extensively by community and social enterprises. The nef assumed the role of promoting social accounting and audit in all sectors from the early s and, working with Traidcraft plc who were the first UK company to publicly commit to doing and publishing a social audit indeveloped and refined the methodology for use within the corporate sector.
The Traidcraft social audits have become models of good practice and their published summary versions have been readily available. Today the full social accounts may be viewed on the Traidcraft website.What is Social Accounting and Audit.
Social accounting and audit is about assessing the social value generated by an organisation. Social Accounting and Audit (SAA) helps you prove, improve and account for the difference you are making. Starting with that in mind, it helps you to plan and manage your organisation as well as demonstrate what .
Accounting in Context - ACCG This capstone unit brings together the knowledge and skills acquired throughout the accounting program and looks forward to professional work or study. International Accounting Bulletin is the only global magazine covering the professional services world.
Focusing on business issues affecting firms, networks and associations, it is a trusted source for leading accounting news, as well as vital data and analysis provided by its survey features.
Introduction to the context of accounting - Kindle edition by The Open University. Download it once and read it on your Kindle device, PC, phones or tablets.
Use features like bookmarks, note taking and highlighting while reading Introduction to the context of accounting. Harmonization of Accounting in Accounting Context; Harmonization of Accounting in Accounting Context.
Words Aug 25th, 9 Pages (a) Briefly explain what prompted some countries over the world to strongly advocate harmonization of accounting. Brief History of Social Accounting and Audit SAN has updated the Brief History of Social Accounting and Audit to take account of the surge in interest in social impact.
We believe that understanding the history of an approach can help people appreciate how it has evolved over time to suit the changing requirements of social economy organisations.