SOCIAL ACCOUNTING

1. SOCIAL ACCOUNTING KAMALPREET KAUR ASSISTANT PROFESSOR GCCBA-42, CHANDIGARH

2. MEANING • Social accounting is an attempt to go beyond financial measurement and understand the social and environmental impact that the organization has on the society. social accounting is known by different names like social audit, social reporting social responsibility accounting etc.

3. Definition “Social accounting is the measurement and reporting of information concerning the impact of an entity and its activities on society” Richard Dobbins and David Fanning

4. Objectives • To develop an appropriate procedure • To determine whether the firms social objectives are consistent with widely shared social responsibility • To measure the firms net social contribution towards the society • To monitor and evaluate the work done for the society • To provide information to the general public • To create awareness • To obtain feedback

5. Indicators of social desirability of a project • Employment potential of the project • Foreign exchange earnings • Social cost benefit analysis • Capital output ratio • Value addition • Environmental factors

6. Benefits of social accounting • Act as evidence of social commitment • Improves employee motivation • Improve image of the firms • Helps in marketing through greater customer support • Improves the confidence of the shareholders of the firm

7. Format of social income statement I Social benefits and costs to staff C.Y (RS P.Y (RS) • Social benefits to staff: Housing facilities --- ------ Medical facilities ---- -------- Transport ----- ------ Holiday benefits ------ ----- Educational facilities ----- ------ Provident fund, gratuity and pension ------ ------ Welfare activities including canteen facilities ------ ------- Other benefits ------ ------- Total ------ ----- b. Social costs to staff ------ ------ Net social benefits to staff (a-b) ------ ------

8. II Social benefits and costs to community C. Y . P.Y. a) social benefits to community: Local taxes paid to municipality ----------- -------- Social welfare of community -- ---- Environmental improvement -- ---- Generation of job potential -- ---- Generation of business --- ---- Total --------- ------ b) Social costs to community Increase in cost of living in the vicinity in account of company operations. ---- ------- Net social benefits to community(a-b) ----- -------

9. III Social benefits and costs to general public Rs Rs • Social benefits to general public: ----- ---- taxes & duties paid to government other social benefits to general public b) social cost to general public : ----- ---- state services consumed central services consumed Net social benefits to general public(a-b) ----- ---- Net social income to staff, Community & general public (I+II+III) ----- ----

10. Social balance sheet Liabilities C.Y P. Y. Assets C. Y. P. Y. I Social capital investments a) building Residential --- --- Hospital ---- --- School ---- --- Welfare ---- --- Activities ---- --- b)Equipments Residential Hospital ----- --- School ---- -- Welfare ---- --- Activities ---- --- c) Electrification Water and gas supply ---- --- II Human assets ----- --- ------- --- I Organization Equity ----- ------ II Social equity ------- ------ Contribution by staff ----------- -------