This report explains the concept of “social accounting” and analyzes the execution of social accounting in the two companies Corning incorporated and AM-PM Glass Company. The analysis is based on the “good” principles of social accounting and the accordance to the global standards. And the analysis shows that Corning’s sustainability has a better understanding and consideration about the requirement of social accounting and it makes its own evaluation system based on ISO 14001, and build up a series of standards, but the standards of EMS can not match with GRI on the completeness and concreteness. AM-PM begins well in the practicing of social accounting. But it is not that easy to do well in all aspects of the social accounting, so it has only considered four “good” principles. While AM-PM takes both AA1000 and GRI as the evaluation standards to assess its performance, and got clear and systematic report results and good reference to its development in the future.
Evaluation on companies’ social accounting1
2. Definition and explanation of the concept of Social Accounting3 2.1 Definition and development of concept3
2.2 Reasons for producing social accounting4
2.3 Principles of “Good” and global standards5
3. Critical evaluation on quality of social accounting of two glass companies5 3.1 Corning Incorporated6
3.2 AM-PM Glass & Mirror Company8
Social accounting is a voluntary process that organizations use to account for their environmental and social impacts. There are both pros and cons telling why organizations decide to engage with this concept of social accounting. The purpose of the report is to evaluate the two glass companies Corning and AM-PM’s social accounting according to the “good” principles and global standards of social accounting. 2. Definition and explanation of the concept of Social Accounting 2.1 Definition and development of concept
Social accounting refers to the process dealing with organizational assessment and communication of its impacts and activities on relevant issues related to ethics, society and the environment with their appropriate stakeholders (Yanovsky, 2006). It aims to address companies’ social and environmental impacts. Social accounting is also known as social and environmental accounting, corporate social responsibility reporting, or sustainability accounting, and different individual companies usually give different titles, like in Corning, it is called corporate social responsibility report, and in AM-PM Glass & Mirror, it is called sustainability report. The concept of social accounting has got more than 40 years’ development. Abt Associates is among the earliest social accounting practitioners, its social concerns included contribution to knowledge, environment and so on, but there is no specific definition for social accounting. In 1980s, the short book “Social Audit- A Management Tool for Co-operative Working” is the basis of the early private sector companies’ social responsibility reporting (Spreckley, 1981), and “Social responsibility reporting” is the early relative formal concept. And in this book, an internal organizational social accounting and audit model are designed to measure individual companies’ social and environmental performance. And with the development of economy and society, the concept of social accounting also gets to a broad and deep domain, which includes the evaluation about every aspect of companies’ social and environmental impacts (Rohinson, 2001; Schwartz and Carroll, 2003). 2.2 Reasons for producing social accounting
The reasons that individual companies develop social accounting and related reports are as follows. On the negative aspect, employees’ internal pressures in their urge of wanting to report the...