Social Accounting Pittsburgh, PA

Social Accounting

Social Accounting is sometimes called Social and Environmental Accounting, Corporate Social Responsibility Reporting, Corporate Social Reporting and Non-Financial Reporting. This is the field dealing with social responsibility and corporate accountability.

If we go back to the labor movements of the late nineteenth and early twentieth centuries they sounded a wake-up call for companies to be socially accountable, and to realize their responsibilities to their workers.   Child labor laws, wage and hour laws, health and safety measures--- all were an effort by the government eventually to legislate social responsibility--- to put people above profit. Today most companies have taken on these responsibilities, willingly in most cases.

Social Accounting is designed to support measures for the good of society.  Those who control a country’s resources must be informed stewards of those resources. Stream pollution and off-shore dumping by companies are examples of a failure to protect natural resources. Social Accounting measures the effect of a given company on society.

The irresponsible treatment of their stockholders and workers, whose pensions were affected, came to light in the recent prosecution of companies like Enron and WorldCom. Public pressure on fast food establishments is designed to make them more socially responsible by eliminating those elements in their offerings that are detrimental to health. There are a myriad of instances where the need for balancing corporate power with responsibility abound today. Only an intense examination of corporate activity will prevent abuse.