UNI

VERSI
TYOFBUEA
FACULTYOFSOCI
ALANDMANAGEMENTSCI
ENCES
DEPARTMENTOFECONOMI
CSANDACCOUNTI
NG
COURSETI
TLE:ENVI
RONMENTALMANAGEMENTACCOUNTI
NG
COURSECODE:
ACC611

CRI
TIQUEOFSOCI
ALANDENVIRONMENTAL
ACCOUNTI
NGREPORTS

BY
GROUP8

Cour
seI
nst
ruct
or: December19,
2019
DrMukahSamuel

1
 GROUP8

Names Mat
ri
cul
e

Ay
ukt
abePaul
Bat
ey SM19P023

Obi
Cli
ntonOkaf
or SM19P005

Or
ok-
TambeBesongebeneNgu SM19P011

Yundom KahmaMar
tha SM19P050

2
CRI
TIQUEOFSOCI
ALANDENVI
RONMENTALACCOUNTI
NGREPORT

1.
1INTRODUCTI
ON

Bef
orel
ooki
ngatt
hecr
it
iqueofsoci
alandenv
ironment
alaccount
ingr
epor
ts,abr
ief
under
standi
ngofwhatsoci
alandenv
ironment
alaccount
ingent
ail
sispar
amount
.

Soci
alaccount
ingemphasi
zest
henot
ionofcor
por
ateaccount
abi
l
ity
.Env
ironment
al
account
ingmayaccountf
oranor
gani
zat
ion’
simpactont
henat
ural
env
ironment
.Soci
al
account
ingi
sthepr
ocessofmeasur
ing,moni
tor
ingandr
epor
ti
ngt
ost
akehol
der
sthe
soci
alandenv
ironment
alef
fect
sofanor
gani
zat
ion’
sact
ions.

Cor
por
atesoci
alandenv
ironment
alr
epor
ti
ng(
CSER)r
efer
stoanyf
inanci
alornon-
f
inanci
aldi
scl
osur
emadebyf
ir
msont
hesoci
alandenv
ironment
alef
fect
soft
hei
r
busi
nessandr
emai
nsmost
lyav
olunt
aryact
ivi
ty.(
KPMG,2013;Adams,2002;Par
ker
,
2005)
.

Ty
pesofenv
ironment
alaccount
ing

 Gl
obal
env
ironment
alaccount
ing

 Nat
ional
env
ironment
alaccount
ing

 Cor
por
ateenv
ironment
alaccount
ing

Cor
por
ateenv
ironment
alaccount
ing can bef
urt
hersub-
div
ided i
nto env
ironment
al
managementandenv
ironment
alf
inanci
alaccount
ing

1.
2Act
orsofsoci
alandenv
ironment
alaccount
ing

 Soci
ety(
bot
hlocal
andi
nter
nat
ional
)

 Empl
oyees

 Consumer
s

Soci
alaccount
ingi
snon-
fi
nanci
al.(
Gray&al
1987,
p.9)

3
1.
3Feat
uresofsoci
alaccount
ing

 Soci
alaccount
ingi
sanexpr
essi
onofacompany
’ssoci
alr
esponsi
bil
i
ty

 I
tisr
elat
edt
otheuseofsoci
alr
esour
ces

 Emphasesonr
elat
ionshi
pbet
weenf
ir
m andsoci
ety

 Det
ermi
nesdesi
rabi
l
ityoft
hef
ir
minsoci
ety

 Soci
alaccount
ingi
stheappl
i
cat
ionofaccount
ingonsoci
alsci
ences

 Emphasi
zesonsoci
alcostaswel
lassoci
albenef
it
s.

1.
4Wher
ear
ethesoci
alandenv
ironment
ali
nfor
mat
iondi
scl
osed?

 Annual
repor
ts

 Companybr
ochur
es

 Cor
por
ategov
ernancesect
ion

 Not
est
otheaccount

 Fi
nanci
alst
atement
s

 Di
rect
or’
srepor
t

 Adv
ert
isement

 Soci
alr
epor
t

 I
nter
netwebpage

1.
5Soci
alandenv
ironment
alaccount
ingt
heor
ies

 Legi
ti
macyt
heor
y(Suchman,
1995)
,(Deegan,
2000)

 St
akehol
der
stheor
y(Gr
ay,
Kouhy&Lav
er,
1995)

 Pol
i
tical
Economi
cTheor
y(PET)(
W.St
anl
eyJev
ons.1888)

 Soci
alcont
ractt
heor
y(JohnRawl
s,1999i
na“
Theor
yofJust
ice”
)

4
  Sl
ackr
esour
cest
heor
y(Penr
ose,
1959)

 Agendaset
ti
ngt
heor
y(Ber
nar
d,1963)

 Agencyt
heor
y(Ross,
1971)

1.
6CRI
TICI
SM OFSOCI
ALANDENVI
RONMENTALACCOUNTI
NGREPORTS

Cr
it
iques orcr
it
ici
sms ar
etwo si
des oft
he same coi
n ei
thert
he soci
aland
env
ironment
alaccount
ingr
epor
thasbot
hADVANTAGESandDI
SADVANTAGES

1.
6.1Needs/
Benef
it
s/adv
ant
agesofsoci
alaccount
ing;

1.Af
ir
mful
fi
ll
sit
ssoci
alobl
i
gat
ionsandi
nfor
msi
tsmember
s,t
hegov
ernmentand
t
hegener
alpubl
i
ctoenabl
eev
ery
bodyt
ofor
m cor
rectopi
nion

2.I
tcount
erst
he adv
erse publ
i
cit
yorcr
it
ici
sm l
evel
ed byhost
il
e medi
a and
v
olunt
arysoci
alor
gani
zat
ions

3.I
tassi
stsmanagementi
nfor
mul
ati
ngappr
opr
iat
epol
i
ciesandpr
ogr
ams

4.Thr
oughsoci
alaccount
ing,
thef
ir
m pr
ovest
hati
tisnotsoci
all
yunet
hicali
nvi
ew
ofmor
alcul
tur
esandenv
ironment
aldegr
adat
ion

5.I
tact
sasanev
idenceofsoci
alcommi
tment

6.I
timpr
ovesempl
oyee’
smot
ivat
ion

7.I
tisnecessar
yfr
om t
hev
iewpoi
ntofpubl
i
cint
erestgr
oups,
soci
alor
gani
zat
ions,
i
nvest
orsandgov
ernment

8.I
timpr
ovest
hei
mageoft
hef
ir
m

5
 9.Thr
oughsoci
alaccount
ing,
themanagementget
sfeedbackoni
tspol
i
ciesai
med
att
hewel
far
eoft
hesoci
ety

10.
Ithel
psi
nmar
ket
ingt
hroughgr
eat
ercust
omersuppor
t

11.
Iti
mpr
ovest
heconf
idenceofshar
ehol
der
soft
hef
ir
m

1.
6.2Di
sadv
ant
agesofsoci
alr
esponsi
bil
i
tyaccount
ing

Soci
alr
esponsi
bil
i
tyaccount
ingi
saf
ramewor
kest
abl
i
shedt
omoni
torandev
aluat
ean
or
gani
zat
ion’
sper
for
mancet
oensur
ethati
tconf
ormst
oenv
ironment
al,economi
cand
soci
alneeds.Unl
i
ke f
inanci
alaccount
ing,i
tfocuses on t
he cont
ri
but
ion t
hatt
he
busi
nessgi
vest
othesoci
etyandt
heenv
ironmentt
hroughi
tsbehav
ior
’sandact
ivi
ti
es.
Soci
alr
esponsi
bil
i
tyhasbeendev
elopedi
nresponset
othegov
ernmentandpubl
i
c’s
pr
essur
eonl
argecor
por
ati
onst
o bed mor
etr
anspar
entand consci
ousaboutt
he
i
mpactoft
hei
ract
ivi
ti
esont
heenv
ironmentandsoci
ety
.Ast
hisi
snotat
radi
ti
onal
account
ingsy
stem,
thei
mpl
ement
ati
onpr
ocesscanbequi
tedi
ff
icul
tandcumber
some
f
orsomeor
gani
zat
ions

1.Costandwor
kload

Thei
mpl
ement
ati
oncostofsoci
alr
esponsi
bil
i
tyaccount
ingi
shi
gh.I
trequi
resahi
gh
l
aborwor
kloadespeci
all
yatt
hei
nit
ialst
ageofi
tsi
mpl
ement
ati
on.Ear
lypl
anni
ngand
t
roubl
eshout
ingst
rat
egi
esmustbeor
gani
zedwhi
chcoul
dincurmassi
vet
imeandcost
t
othebusi
ness.Themanagementmusti
mpl
ementl
ong-
ter
m st
rat
egi
essot
hatt
he
account
ing sy
stem meet
sthe or
gani
zat
ion’
s pr
ofi
tabi
l
ity obj
ect
ives whi
l
e al
so
mi
nimi
zi
ng t
he soci
ali
mpactofi
ts act
ivi
ti
es.Ri
skawar
eness as a r
esul
toft
he
i
mpl
ement
ati
onhast
obet
akeni
ntoconsi
der
ati
onandmoni
tor
ed.

2.Busi
nessobj
ect
ive

I
ncont
rastt
opubl
i
cser
viceswhi
choper
atet
oser
vet
hepubl
i
cneeds,mostpr
ivat
e
busi
nessai
mtomaxi
mizepr
ofi
tandshar
ehol
der
sweal
th.Thenat
ureoft
hei
ract
ivi
ti
es
maymakei
tdi
ff
icul
ttoi
mpl
ementt
hesoci
alr
esponsi
bil
i
tyaccount
ingsy
stem.For
exampl
e,al
thoughacompany
’spol
i
cyandpr
ocedur
esondi
sposalofchemi
calwast
eis

6
i
naccor
dancet
other
ulesandr
egul
ati
on,
itmaynotbeenought
oachi
evet
het
argetof
accommodat
ingenv
ironment
alandsoci
alneeds.

3.St
affmor
ale

Thei
mpl
ement
ati
onpr
ocesswhi
chr
equi
resheav
ywor
kloadmaydet
eri
orat
ethest
aff
mor
ale.Hav
ingt
owor
kext
rahour
sandaddi
ti
onalwor
kloadatt
hesamepayr
atecan
causeempl
oyeest
oseekempl
oymentsomewher
eel
se.Asar
esul
t,t
hebusi
nesswi
l
l
i
ncurhi
ghl
abourt
urnov
erandmor
ecostbeneededt
orecr
uitandpossi
blyt
rai
nnew
st
aff
.

4.Resour
ces

Unl
i
keat
radi
ti
onalaccount
ingsy
stem whi
chconcer
nfi
gur
es,t
hesoci
alr
esponsi
bil
i
ty
account
ingi
sdev
elopedt
oensur
eabusi
nessact
ivi
tyf
it
stheenv
ironmentandsoci
ety
sur
roundi
ngi
t.Resour
cessuchassoci
alcostbenef
itanal
ysi
sandi
nfor
mat
ionon
pol
l
uti
oni
mpactanddest
ruct
ionofani
malr
esour
cesf
orm par
toft
hei
mpl
ement
ati
on
pr
ocess.Anor
gani
zat
iont
hatwi
shest
oimpl
ementt
hissy
stem mayf
aceashor
tageof
r
esour
cesandt
her
efor
emaybedi
scour
agedt
opr
oceed.

Ref
erences

Adams,C.
A.(
2002)
.Int
ernalor
gani
zat
ionalf
act
orsi
nfl
uenci
ngcor
por
atesoci
aland
et
hicalr
epor
ti
ng:bey
ondcur
rentt
heor
izi
ng.Account
ing,Audi
ti
ngandAccount
abi
l
ity
Jour
nal
,15(
2),
pp.
223-
250,
htt
p:/
/dx.
doi
.or
g/10.
1108/
09513570210418905.

Ami
nah,A.(
2019)
.Whatar
ethedi
sadv
ant
agesofsoci
alaccount
ingr
esponsi
bil
i
ty?
Ret
ri
eved f
rom ht
tps:
//www.
ehow.
co.
uk/
inf
o_12278492_
adv
ant
ages-
disadv
ant
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ssadm.
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amp=t
rue#ampf
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Cohen,B.(
1963)
.Thepr
essandf
orei
gnpol
i
cy.Pr
incet
on,NJ:Pr
incet
onUni
ver
sit
y
Pr
ess.

Deegan,C.(
2002)
.Int
roduct
ion:Thel
egi
ti
mizi
ngef
fectofsoci
alandenv
ironment
al
di
scl
osur
es-
Atheor
eti
calf
oundat
ion.Account
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ti
ngandAccount
abi
l
ityJour
nal
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282-
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Donal
d,S.
LandMaxwel
l
,M.(
1972)
.TheAgendaSet
ti
ngFunct
ionofMassMedi
a:Publ
i
c
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pp.176-
187.ht
tp:
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doi
.or
g/10.
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Gr
ay,
R.,
Kouhy
,R.andLav
ers,
S.(
1995)
.Cor
por
atesoci
alandenv
ironment
alAccount
ing:
Ar
evi
ewoft
hel
i
ter
atur
eandal
ongi
tudi
nalst
udyofUKdi
scl
osur
e.Account
ing,
Audi
ti
ng
and Account
abi
l
ity Jour
nal
, 8(
2), pp.
47-
77.
ht
tp:
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Gr
ay,R.
,Owen,D.andMaunder
s,K.
T.(
1987)
.Cor
por
atesoci
alr
epor
ti
ng:Account
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andAccount
abi
l
ity
.

KPMG. (
2013)
. The KPMG sur
vey of cor
por
ater
esponsi
bil
i
tyr
epor
ti
ng 2013.
KPMG.
com/
sust
ainabi
l
ity
.

Par
ker
,L.(
2005)
.Soci
aland env
ironment
alaccount
ing r
esear
ch:A v
iew f
rom t
he
comment
arybox.Account
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abi
l
ityJour
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ht
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Penr
ose, E.
T. (
1959)
. The t
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ir
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ht
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s,J.(
1999)
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ust
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ht
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awl
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ht
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al-
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l
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