Social Accounting Essay

2414 Words10 Pages
“Define and explain the concept of ‘Social Accounting’, and critically evaluate the social and environmental reports of two companies of your choice (in the same industrial/service sector).” Table of Contents 1. Introduction 3 2. Concept of Social Accounting 3 3. Social Accounting at Uniqlo 3 4. Social Accounting at Giordano 3 5. Evaluation of social accounting reports at Uniqlo and Giordano 3 6. Comments 3 7. Conclusion 3 8. References 3 1. Introduction This report will provide an introduction of the concept of Social Accounting and will discuss and evaluate the CSR reports of two specialty retailers – namely Gap Inc. (“Gap”) based in the USA and Fast Retailing Co. Ltd (“FR”) based in Japan (operating under “Uniqlo” brand). 2. Concept of Social Accounting 2.1 Definition of social accounting There are different definitions of social accounting but they are essentially conveying the same message: “Social accounting is a way of demonstrating the extent to which an organisation is meeting its stated social or ethical goals. “ (Social accounting: a method for assessing the impact of Enterprise development activities? Chris pay, traidcraft exchange) “Social accounting is a type of accounting that a business performs to place a value on the influence its operations have on society. It requires that enterprises look closely at all that it does and what kind of impact its activities have on people, places, and the environment. Social accounting doesn't deal with the type of assets that financial accounting does; rather, it focuses on business behaviors and what kind of impact that behavior has. “ (Michael Ugulini, 30 May 2012) Essentially, social accounting is way through which organizations will be able to identify, measure, evaluate, monitor and communicate with its stakeholders the impact of its business
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