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Contemporary Accounting

Notes provides information according to social benefits and costs to employees, local community
and the general public. Social balance sheet portrays social investment of capital nature
(i.e. social assets) viz. township, roads, buildings, hospitals, schools, clubs, etc. on the
assets side and the organisations equity and social equity on the liabilities side.
2. Operating statement approach: According to this approach, a firm presents only the
positive and negative aspects of social activities as a result of business operations. The
positive aspects are broadly termed as social benefits. While negative aspects are termed
as social costs.

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Caution The difference between social benefits and social costs represent the net social
contribution by the firm.
3. Narrative approach: This is simplest and easiest method for reporting social costs and
social benefits information. In case of this approach, disclosure regarding social costs and
social benefits is made in a narrative and not in a quantitative form. The firm generally
highlights the positive aspects of its social activities.

Notes Important types of Social Accounts
1. A report on performance against the stated objectives.
2. An assessment of the impact on the community.
3. The views of stakeholders on our Objectives and Values.
4. A report on environmental performance.
5. A report on how we implement equal opportunities.
6. A report on our compliance with statutory and voluntary quality and procedural
standards.

Self Assessment

Fill in the blanks:
13. The …………….provides information according to social benefits and costs to employees,
local community and the general public.
14. ……………..portrays social investment of capital nature (i.e. social assets) viz. township,
roads, buildings, hospitals, schools, clubs, etc. on the assets side and the organisations
equity and social equity on the liabilities side.
15. In case of narrative approach, disclosure regarding social costs and social benefits is made
in a narrative and not in a ………….. form.

Task Identify the key Indian companies involved in social reporting.

5.5 Summary

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.

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