Page 68 - DCOM409_CONTEMPORARY_ACCOUNTING

Dilfraz Singh, Lovely Professional University
Unit 5: Social Reporting

Unit 5: Social Reporting Notes

CONTENTS
Objectives
Introduction
5.1 Meaning and Nature of Social Reporting
5.2 Need of Social Reporting
5.3 Scope of Social Reporting
5.4 Models of Social Disclosure

5.5 Summary
5.6 Keywords
5.7 Review Questions
5.8 Further Readings

Objectives

After studying this unit, you will be able to:
Explain the meaning and nature of social reporting
Identify the need of social reporting

Describe the models of social disclosure
Introduction

Social reporting is reporting on those activities of an organisation that have an impact on
society at large and are not necessarily represented by its traditional financial report.
Aspects included in social reporting include such information disclosed in the annual reports
viz., Statement on Human Resource Accounting, Statement of Value Added Report on Foreign
Currency Transactions (revealing the balance of payments position) and Accounting for Various
Social Objectives. Social and ethical accounting, auditing and reporting is still relatively new in
many developing or third world nations, but is gaining acceptance internationally as the primary
demonstration of social accountability.

Did u know? What do you mean by social report?
A social report is the result of a thorough evaluative process focused on the social impact
of a business on its various stakeholders.
5.1 Meaning and Nature of Social Reporting

As discussed above, social reporting measures and reports the social costs and benefits on
account of operating activities of a business enterprise. The concept of social reporting is gaining
popularity on account of the following factors:

Increasing awareness of society regarding the contributions the corporate units are making.
Providing meaningful means of identifying and rewarding business for social contribution.

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