Social reporting is the process of communicating the social and environmental effects of organizations [sic] economic actions to particular interest groups within society and to society at large. (Gray et al., 1987, p. ix) As such it involves extending
Table of Contents
1 Introduction
2 Clarification of the Terminology
3 The History and Development of Social Reporting
4 The Social Reporting Framework
4.1 Justification of additional Disclosures
4.2 Reporting Format
4.3 Institutionalisation of Social Reporting
4.4 Responses to Social Reporting
5 Theoretical and Conceptual Basis
5.1 Models and Concepts for Social Reporting
5.2 Accountability
5.3 Social Accounting Standards
6 The Audit of Social Reporting
7 The Case against Social Reporting
8 Conclusion
Objectives and Themes
The primary objective of this essay is to describe the concept of social reporting, clarify its terminology, and examine the surrounding theoretical frameworks, historical developments, and critical perspectives associated with the field.
- The historical evolution and institutionalization of social reporting.
- Theoretical models and concepts underpinning social accounting.
- The critical debate regarding corporate accountability and transparency.
- The role of auditing in enhancing the credibility of social reports.
- Arguments concerning the efficacy and limitations of social reporting.
Excerpt from the Book
4.1 Justification of additional Disclosures
Mathews (1993, 1995) identifies four broad groups of arguments which may be used to justify further accounting disclosures. These are market-related, legitimacy related, social contract related and radically related arguments. Market-related arguments are used to advance the case for additional disclosures on the basis that shareholders and creditors could make better decisions and benefit economically in the long term from having additional information. Organisational legitimacy arguments are used where further disclosures would be made to legitimise corporate actions in the perceptions of a specific target group or the general public. Social contract arguments are “based upon the notion that business operates in society via a social contract where it agrees to perform various socially desired actions ... It therefore needs to disclosure enough social information for society to assess whether it is a good corporate citizen.” (Guthrie and Parker, 1989, p. 344) Finally, radically related arguments are those put forward by critical theorists who believe in an alternative model for society, including a different role for accounting.
Summary of Chapters
1 Introduction: Introduces the concept of social reporting as an extension of organizational accountability and outlines the structure of the essay.
2 Clarification of the Terminology: Addresses the confusing variety of terms used in the literature and establishes 'social reporting' as the preferred term for this paper.
3 The History and Development of Social Reporting: Examines the 1970s as a pivotal decade for revising business-society relations and the subsequent emergence of corporate social performance indicators.
4 The Social Reporting Framework: Discusses the justifications for disclosures, reporting formats, institutionalization methods, and the varying responses of the academic community.
5 Theoretical and Conceptual Basis: Explores key models of social reporting, the broadened view of accountability, and the requirements for effective standards.
6 The Audit of Social Reporting: Highlights the critical need for independent auditing to provide credibility to social reports despite existing concerns regarding independence and expertise.
7 The Case against Social Reporting: Presents critical arguments suggesting that social reporting may serve as a tool for corporate legitimation rather than democratic accountability.
8 Conclusion: Assesses the uncertain future of social reporting and suggests that its development depends on future demand, legislation, and professional advocacy.
Keywords
Social Reporting, Corporate Accountability, Social Accounting, Disclosure, Stakeholder Theory, Legitimacy Theory, Social Contract, Auditing, Business Ethics, Corporate Social Performance, Social Indicators, Reporting Standards, Management Information, Transparency, Critical Theory.
Frequently Asked Questions
What is the fundamental focus of this paper?
The paper explores the concept of social reporting, which is defined as the process of communicating the social and environmental impacts of an organization's economic activities to interested stakeholders.
What are the central themes discussed in the text?
Key themes include the history and development of social reporting, the various justifications for accounting disclosures, different reporting formats, the role of auditing, and the critical opposition toward corporate social reporting practices.
What is the primary objective of the author?
The author aims to provide a comprehensive description of the social reporting concept, outline its historical context, and evaluate both the supporting theories and the critical viewpoints surrounding its implementation.
Which scientific methods or approaches are utilized in the work?
The work utilizes a literature review approach, synthesizing scholarly theories and existing debates from the 1970s, 80s, and 90s to structure a conceptual analysis of social reporting.
What core topics are covered in the main body?
The main body covers the justification for disclosures, the models of social reporting (inventory, goal-oriented, and social indicators), the definition of accountability, the importance of audit, and the arguments presented by critics of the practice.
Which keywords best characterize this work?
The work is characterized by terms such as social reporting, corporate accountability, legitimacy theory, social accounting, and stakeholder relations.
How does the author categorize the arguments for social disclosure?
The author, referencing Mathews, categorizes them into four groups: market-related, legitimacy-related, social contract-related, and radically-related arguments.
What are the three core standards for social reporting proposed by Estes?
Estes proposes the three primary standards of relevance, freedom from bias, and understandability.
Why do critics argue against social reporting?
Critics, particularly critical theorists, argue that social reporting can function as a tool to protect the interests of capital over labor and often acts merely as a public relations instrument to polish a company's image rather than providing genuine accountability.
- Quote paper
- Dr. Klaus Schöfer (Author), 1998, Social Reporting, Munich, GRIN Verlag, https://www.grin.com/document/185872
