Framework Development of the Social Responsibility Accounting towards Economic Units’ Evaluation

Abstract

Over the years, the concept of Social Responsibility Accounting (SRA) is gaining recognition and sophistication. While providing management with key performance indicators in social, environmental and economic dimensions, accountants are deemed to provide integrated reporting that is reflective of the organization’s strategy and values, as well. Social Responsibility Accounting is used as a tool to evaluate the company’s performance through economic units in view of Corporate Social Responsibility (CSR). The study identifies the opportunities and challenges through the different approaches of Social Responsibility Accounting. The findings throw light on the fact that the best practice for Social Responsibility Accounting depends on the unique organizational strategies and values. The study illustrates the challenges with which Social Responsibility Accounting needs to be extended. The study also suggests that for each organization different diagnostic and interactive approaches are used through Social Responsibility Accounting as every firm perceives a different sense of responsibility towards the society. Further, the study emphasizes the need for the legislation, industrial standards and the identification, justification and implementation of such standards. This study demonstrates a comprehensive understanding of a few of the widely accepted procedures that provide credible, quantifiable and objective measures in the performance of an organization with its focus towards CSR.