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Unit 5: Social Reporting

Social reporting presently is being either included in the Annual Reports or finds some Notes
reference in the Chairman’s Address or the Director’s Report.

Social reporting format tends to vary from one company to another company as till date
no format has been described by any Act in India.
Social reporting is equally important for both the management and the society.

Social accounting measures and reports the social costs and benefits on account of operating
activities of a business enterprise.
According to social statement approach, two statements are prepared (i) Social Income
Statement and (ii) Social Balance Sheet.
According to operating statement approach, a firm presents only the positive and negative
aspects of social activities as a result of business operations.

5.6 Keywords

Social Balance Sheet: 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.
Social Income Statement: The Social Income Statement provides information according to social
benefits and costs to employees, local community and the general public.
Social Reporting: Social reporting measures and reports the social costs and benefits on account
of operating activities of a business enterprise.

5.7 Review Questions

1. A social report is the result of a thorough evaluative process focused on the social impact
of a business on all its various stakeholders. Give some suggestions to support the
statement.

2. The concept of social responsibility extends beyond the provisions embodied in current
law. Discuss.
3. Social reporting is equally important for both the management and the society. How?

4. What are the key suggestions for better social reporting?
5. Discuss the scope of social reporting.
6. What are the key accounts prepared under social statement approach?

7. What are the key models of social disclosure?
Answers: Self Assessment

1. Social reporting
2. social responsibility
3. Director’s
4. format

5. stakeholders

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