Social Accounting Practices in India as a Corporate Social Responsibility”

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“Social Accounting Practices in India as a Corporate Social Responsibility”

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Concept:
The concept of Social Accounting originated in different forms by Adam Smith in 1776, Later on, Karl Marks and Engel also expressed their views about social costs in 1844. Pigou in 1920 also elaborated the divergence of Social and Private Costs. The concept of social accounting was clearly introduced in the 1970’s and later this concept received serious consideration from professional and academic accounting bodies. Social accounting as an approach began developing in the UK in the early 1970s, when the Public Interest Research Group established Social Audit Ltd. This has led to an increasing awareness of CSR, and the “triple bottom-line” of business success – measuring the business not only in its financial performance, but by its social and environmental impact as well. Social accounting is adopted mostly by developed nations but now developing nations are also adopting this concept as their management practice. The concept of Corporate Social Responsibility is underpinned by the idea that corporations can no longer act as isolated economic entities operating in detachment from broader society. Traditional views about competitiveness, survival and profitability are being swept away. The concept of corporate social responsibility is now firmly rooted on the global business agenda. Meaning:

“Social Accounting” is a method by which a business seeks to place a value on the impact on society of its operations. Social Accounting is an expression of company’s social responsibilities and requirements of general corporate accountability. It is concerned with the development of measurements system to monitor social performances. It is also known by various names like, social and environmental accounting, corporate social reporting, corporate social responsibility reporting, non-financial reporting, or sustainability accounting. Corporate social responsibility (CSR) promotes a vision of business accountability to a wide range of stakeholders, besides shareholders and investors. Key areas of concern are environmental protection and the wellbeing of employees, the community and civil society in general, both now and in the future. “Social accounting “is an important tool to measure the performance of any company in view of social responsibility. Corporate Social Responsibility of Indian companies:

Corporate Social Responsibility Practices in India sets a realistic agenda of grassroots development through alliances and partnerships with sustainable development approaches. In any societal structure, we have multiple stakeholders, the one amongst others being the businesses represented by companies. These businesses meaningfully contribute to the state exchequer, impact their internal stakeholders and also generously support societal initiatives. There are many instances where businesses have all along played an important role in addressing issues of education, health, environment and livelihoods through their corporate social responsibility interventions in various parts of the country. Some of these interventions are now also available as innovative practices. Corporate Social Responsibility (CSR) defined as “the ethical behavior of a company towards the society,” manifests itself in the form of such noble programs initiated by for-profit organizations. CSR has become increasingly prominent in the Indian corporate scenario because organizations have realized that besides growing their businesses it is also vital to build trustworthy and sustainable relationships with the community at large. This is one of the key drivers of CSR programs. Though India is one of the fastest growing economies, socio-economic problems like poverty, illiteracy, lack of healthcare etc. are still ubiquitous and the government...
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