Eco Audit

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Introduction...............................................................................................................................2 Social accounting as a concept.................................................................................................2 `Social accounting` definition

The development of the concept
The reasons of producing such reports nowadays
Principles of good social accounts
Global standards for social and environmental reports
Critical evaluation of The Goodyear Tire & Rubber Company and The Yokohama Rubber Company on `Social accounting`...............................................................................5 Companies overview

Accordance to the generally agreed principles of social accounting Accordance to global standards
Conclusion................................................................................................................................14 Reference list...........................................................................................................................15

Introduction
One of the most effective methods of regulating social and labour relations is a social accounting. The purpose of this paper is to define the meaning of `social accounting`, its value on the example of two world companies, review the effectiveness of its use, carry out their comparison and to find out if they fit generally accepted standards of `good` social accounting.

Social accounting as a concept

Economic growth - a necessary condition for successful and sustainable development of the country, region, industry, enterprise. But by itself it does not guarantee social progress. To achieve the latter economic growth should be complemented by measures of a social nature, which include respect for social rights of workers, creating the conditions for the healthy psychological atmosphere, creative attitude to work, promotion of professional and cultural growth of staff, accompanied by measures of social support, involve the development of social infrastructure. That is all that allows unfolding human potential. Only with the interaction of economic and social factors is possible to maintain stable social progress.

`Social accounting` definition

The growing interdependence between the economy and social sphere, the interpenetration of `economic` and `social`, served as an objective basis for the emergence and development of social accounting as a management tool. Social accounting is defined as voluntary process that delivers information to stakeholders about company`s performance and the way it impacts on social, environmental and ethical issues (Crane and Matten, 2010). Social accounting stands for opening new uncommon information on such areas of corporate life as products, employees, services, impact on environment and ways to decrease it (Mathews and Perera, 1995). Social accounting is a generalized term to determine special niche for company`s reports about their activities on social, ethics and influence on the environmental issues. There is no standardized name for these reports, therefore a large number of possible variants of such report names can occur (The Body Shop calls it Values Report, General Electric – Citizenship Report, GoodYear – Corporate Responsibility Report (Eco Audit Brief)). The development of the concept

Carroll & Buchholtz (2006), state that history of social accounting lasts almost 50 years, from the presentation of the work “Measurement of the Social Performance of Business” by T.J. Kreps. After that, they say, social accounting, as itself, appeared in 1970s, when few companies managed to use it to define their social performance and compare it with their goals. It also pointed out that social accounting fell into disgrace, but in late 90s it appeared to become popular again. As Crane and Matten (2010) think, there were no clear generalized standards about what eco audit should be like and it created a...
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