Social accounting, auditing, and reporting
For a business to take responsibility for its actions, that business must be fully accountable. Social accounting, a concept describing the communication of social and environmental effects of a company's economic actions to particular interest groups within society and to society at large, is thus an important element of CSR.
Social accounting emphasizes the notion of corporate accountability. D. Crowther defines social accounting in this sense as "an approach to reporting a firm’s activities which stresses the need for the identification of socially relevant behavior, the determination of those to whom the company is accountable for its social performance and the development of appropriate measures and reporting techniques." An example of social accounting, to a limited extent, is found in an annual Director's Report, under the requirements of UK company law.
A number of reporting guidelines or standards have been developed to serve as frameworks for social accounting, auditing and reporting including: * AccountAbility's AA1000 standard, based on John Elkington's triple bottom line (3BL) reporting * The Prince's Accounting for Sustainability Project's Connected Reporting Framework[dead link] * The Fair Labor Association conducts audits based on its Workplace Code of Conduct and posts audit results on the FLA website. * The Fair Wear Foundation takes a unique approach to verifying labour conditions in companies' supply chains, using interdisciplinary auditing teams. * Global Reporting Initiative's Sustainability Reporting Guidelines * Economy for the Common Good's Common Good Balance Sheet * GoodCorporation's Standard developed in association with the Institute of Business Ethics * Synergy Codethic 26000 Social Responsibility and Sustainability Commitment Management System (SRSCMS) Requirements — Ethical Business Best Practices of