business ethics, role of accountants in policiing and assessment process of social accounting, ethical issues faced by organisations and accountants, development of social accounting issues within organisations
Social accounting is not another system to be imposed on an organisation it is more an approach, providing a framework which permits the organisation to report on its social performance in the fullest and most effective way possible. Social accounts make use of information which an organisation already gathers, reports which already have to be prepared, and consultations which are already carried out. Gaps in existing documentation and information systems will be identified and new methods of capturing information and gathering stakeholder views developed.
No organisation starts with a clean sheet. All organisations keep records about what they do, about staff and volunteers, about their members, about their clients and customers, about training organised, about their members etc. All organisations have records of meetings and produce various reports. This is valuable raw material which can be used in the social accounts. Usually there is much more "in the bag" than you realise, sometimes tucked away in different departments or different computers and not brought together or only used for one purpose when it could be usefully used to inform others as a part of the social accounting process.
The Five Stages of Social Accounting and Audit
Stage One: Introducing Social Accounting and Audit
• What is it?
• Why do a social audit?
• What are the key principles?
• Understanding the jargon
• What do we already do towards a social audit?
• What do others do? history and current practice in different sectors
• Do we want to do it?
• Managing the Social Audit
Stage Two: The foundations
• Clarify the social Objectives and the Activities undertaken to achieve them.
• State the Values which underpin the purpose and work of the organisation.
• Prepare a Stakeholder map of the organisation, and
• Identify the Key Stakeholders
• Determine the Scope of the social audit
Stage Three: The nuts and bolts Social Book-keeping
• Agree the indicators which will allow performance to be assessed
• Identify what existing records and data can be used
• Decide what new, additional data will be collected and how
• Agree how and when to consult which stakeholders, and about what
• Organise the resources needed to carry out the social book-keeping and the stakeholder consultation
• Produce a Social Accounting Plan and time-table
• Implement the Plan and monitor progress
Stage Four: Preparing and Using the Social Accounts:
• Draft the Social Accounts using existing information, the data collected and the views of the stakeholders
•