Social Responsibility
Definition
Social responsibility can be mainly divided into two parts. First one is for individual which includes for example the personal value, how the new entrants can fit in the company and how individuals make contribution to the company. For the company, which is also called corporate social responsibility. Corporate social responsibility can be regarded as a manner or behavior that business operations not only maximize the profit to shareholders ,but also willing to meet the pubic expectation (Baker,2004). Those including four levels maximizing earing per share, complying law and local regulations, adopting to societal and ethical norm and contributing to philanthropic. (Caroline, Ryan, Chris, & Peter, p. 5). It also can seen as an interaction between company and other stakeholders such as employees, customers, suppliers and communities (Angus & Xin, 2010, p. 6). Individual social responsibility and corporate social responsibility need to work together to create a responsible culture between the individual and corporation. Moreover, ISR is the foundation of CSR, because the company is made up of separate employees. Once this happens, we will have a better working relationship between employees and companies ("What is Social Responsibility," 2013).
Importance
There has been much discussion revolving around the issue of the importance about the social responsibility to the company. Company as a member of the society has a moral obligation to help society. For another point of view, social responsibility is also an important factor that organizations should take into account.
In internal environment in company, organizations and employees have interacted affect with each other. Company should make proper employment with employees and give recognition to the workers as human being(“The Importance of Social Responsibility”, n.d.). Individual employee should make contribution to the corporate affairs. At external level, organizations should “improve public image of firm” (“The Importance of Social Responsibility”, n.d.) which includes providing qualify products ) and services. Moreover high reputation can result in higher profit, make stakeholder more confidence about organizations. When the company has the enough capacity, it should try to solve social problems, like pollutions or decreasing the waste, Therefore, acts of social responsibility would lead to a good image of the companies to their consumers or other companies. Eventually, the profit will increase and favor to buy goods from the company (“The Importance of Social Responsibility”, n.d.).
Following I will discuss more specific in accounting firm. As an accounting firm, there are five reasons why we act of social responsibility. Firstly, it will lead high reputation, The clients would like to purchase sevices from a company which will not be in an embarrass situation in the future. An accounting firm has high reputation can mean with high-quality auditor, tax advisor etc. Secondly, we need to make sure that stakeholders feel like the company will perform in a legal way and will not to be involved in legal repercussion in the future. Next, we need to build a good working environment, Not only the company should provide comfortable working environment, but also the staff should be treated equally regardless of gender, age and race .Therefore, we can attract quality staff. With these conditions in-place,we should be able to attract customers and staff worldwide ,these will make our business more global. Finally, in the business operations, we will reduce our wastes by recycling where possible (paper, printing etc) to make our operations more environmentally friendly. Therefore, we can reduce our operation cost (Guo & Duff, 2010,p. 6.).
In addition, there are some other advantages to perform social reasonability for example it will give us new opportunities, which means we need invent new product to make our work more effective. Moreover we can save our advertising cost by word of month (Caroline, Ryan, Chris, &Peter, p. 6.).
In internal environment in company, organizations and employees have interacted affect with each other. Company should make proper employment with employees and give recognition to the workers as human being(“The Importance of Social Responsibility”, n.d.). Individual employee should make contribution to the corporate affairs. At external level, organizations should “improve public image of firm” (“The Importance of Social Responsibility”, n.d.) which includes providing qualify products ) and services. Moreover high reputation can result in higher profit, make stakeholder more confidence about organizations. When the company has the enough capacity, it should try to solve social problems, like pollutions or decreasing the waste, Therefore, acts of social responsibility would lead to a good image of the companies to their consumers or other companies. Eventually, the profit will increase and favor to buy goods from the company (“The Importance of Social Responsibility”, n.d.).
Following I will discuss more specific in accounting firm. As an accounting firm, there are five reasons why we act of social responsibility. Firstly, it will lead high reputation, The clients would like to purchase sevices from a company which will not be in an embarrass situation in the future. An accounting firm has high reputation can mean with high-quality auditor, tax advisor etc. Secondly, we need to make sure that stakeholders feel like the company will perform in a legal way and will not to be involved in legal repercussion in the future. Next, we need to build a good working environment, Not only the company should provide comfortable working environment, but also the staff should be treated equally regardless of gender, age and race .Therefore, we can attract quality staff. With these conditions in-place,we should be able to attract customers and staff worldwide ,these will make our business more global. Finally, in the business operations, we will reduce our wastes by recycling where possible (paper, printing etc) to make our operations more environmentally friendly. Therefore, we can reduce our operation cost (Guo & Duff, 2010,p. 6.).
In addition, there are some other advantages to perform social reasonability for example it will give us new opportunities, which means we need invent new product to make our work more effective. Moreover we can save our advertising cost by word of month (Caroline, Ryan, Chris, &Peter, p. 6.).
Development
The strategy for social responsibility has three main parts.
1.Understanding of social responsibility
Firstly we need to make sure the employee understand the definition of social responsibility. In different departments we will give one hour presentation to employees. After the presentations, we will provide self- assess questions after the presentation.
2.Training program
Before talking about the strategy, we need to introduce three terms to the employees.
Corporate Sustainability Reporting, Sustainability Accounting and Green Accounting
Corporate Sustainability Reporting, which is the report, asks for organizations to provide the report not only including financial facts but also taking consideration into environmental and social aspects. All of these information help comprehensive reporting and stakeholders understanding of financial, social and environmental issues, however , they are no measurement for social and environmental cost (Lusher, 2012 p. 15). In consideration of the limitation of the sustainability reporting, there are two other terms need to bring in. More specific, they are sustainability accounting and green accounting.
The International Federation of Accountants (IFAC) provided a Sustainability Framework to the professional accountants (Lusher, 2012 p. 16). In the framework, it asks the accountant to consider sustainability into every aspect of company “their mission, goals and objectives, strategies, management and operations, definitions of success, and stakeholder communications” (2011, p. 6).
For green accounting, it demands organizations when measuring the social and environmental cost at the meantime think about future. The difference between them is the sustainability accounting combines the financial and non-financial aspects into one report. However, the green accounting is same with traditional financial cost, it will create a developing model to measure social and environmental cost (Lusher, 2012 p. 17) .
Based on what I said above, accountant are required to think about social and environment when they are working. They need measure social and environmental cost and build a developing model for organizations.
In the company, managers will invite some industry experts to give lessons to the employee. In order to make sure they need to consider sustainability and “green” in their work and show them how to measure social and environmental cost in the comprehensive reporting.
1.Understanding of social responsibility
Firstly we need to make sure the employee understand the definition of social responsibility. In different departments we will give one hour presentation to employees. After the presentations, we will provide self- assess questions after the presentation.
2.Training program
Before talking about the strategy, we need to introduce three terms to the employees.
Corporate Sustainability Reporting, Sustainability Accounting and Green Accounting
Corporate Sustainability Reporting, which is the report, asks for organizations to provide the report not only including financial facts but also taking consideration into environmental and social aspects. All of these information help comprehensive reporting and stakeholders understanding of financial, social and environmental issues, however , they are no measurement for social and environmental cost (Lusher, 2012 p. 15). In consideration of the limitation of the sustainability reporting, there are two other terms need to bring in. More specific, they are sustainability accounting and green accounting.
The International Federation of Accountants (IFAC) provided a Sustainability Framework to the professional accountants (Lusher, 2012 p. 16). In the framework, it asks the accountant to consider sustainability into every aspect of company “their mission, goals and objectives, strategies, management and operations, definitions of success, and stakeholder communications” (2011, p. 6).
For green accounting, it demands organizations when measuring the social and environmental cost at the meantime think about future. The difference between them is the sustainability accounting combines the financial and non-financial aspects into one report. However, the green accounting is same with traditional financial cost, it will create a developing model to measure social and environmental cost (Lusher, 2012 p. 17) .
Based on what I said above, accountant are required to think about social and environment when they are working. They need measure social and environmental cost and build a developing model for organizations.
In the company, managers will invite some industry experts to give lessons to the employee. In order to make sure they need to consider sustainability and “green” in their work and show them how to measure social and environmental cost in the comprehensive reporting.
3.Activity: Becoming energy efficient
In company, the manager make an activity which called Becoming energy efficient . It can make staff become aware how to use energy more efficiently. For instance
Turn off lights when not working in that area.
When it has sunlight,staff may be able to turn off the lights .
Try to print double sided and recycle the paper.
Allow employees to work at home.
Moreover, putting signs on the wall to remind people.
In company, the manager make an activity which called Becoming energy efficient . It can make staff become aware how to use energy more efficiently. For instance
Turn off lights when not working in that area.
When it has sunlight,staff may be able to turn off the lights .
Try to print double sided and recycle the paper.
Allow employees to work at home.
Moreover, putting signs on the wall to remind people.
Evaluation
Base on the development method, the company will provide the following evaluation method to evaluate how effective the strategies work.
1.Self-assess question for the understanding of definition about social responsibility.
Do you know the definition of social responsibility?
Do you know the four levels of corporate social responsibility?
What you can do in your working to show your social responsibility?
(eg: Turn off the light when you do not need them, Make effort to the company , Make accurate and clear financial statement to client, Provide the ethical and logical advices to the client etc.)
2.Double check does the staff including non-financial cost in the final reporting.
3.Asking feedback from clients and ask do they satisfy with our work (Is our method effective to evaluate non-financial cost?) and what are their opinions about the sustainability accounting and green accounting.
4.Checking the income statement whether the cost increasing or decreasing.
5. Providing CSR reporting annual base on the accounting industry characteristics.
1.Self-assess question for the understanding of definition about social responsibility.
Do you know the definition of social responsibility?
Do you know the four levels of corporate social responsibility?
What you can do in your working to show your social responsibility?
(eg: Turn off the light when you do not need them, Make effort to the company , Make accurate and clear financial statement to client, Provide the ethical and logical advices to the client etc.)
2.Double check does the staff including non-financial cost in the final reporting.
3.Asking feedback from clients and ask do they satisfy with our work (Is our method effective to evaluate non-financial cost?) and what are their opinions about the sustainability accounting and green accounting.
4.Checking the income statement whether the cost increasing or decreasing.
5. Providing CSR reporting annual base on the accounting industry characteristics.
Self-assessment
Ask five questions when company make decisions
1. Can your conduct make profit?
2. Can your conduct maximize our client's profit and minmize their tax?
3. Is this conduct against any law or professional accounting standard?
4.Is this behavior consider social impact?
5. Can we do something for soceity?
1. Can your conduct make profit?
2. Can your conduct maximize our client's profit and minmize their tax?
3. Is this conduct against any law or professional accounting standard?
4.Is this behavior consider social impact?
5. Can we do something for soceity?
Reference
Baker, M. (2004, June 8). Corporate social responsibility -What does it mean [Web log post]. Retirieved from http://www.mallenbaker.net/csr/definition.php
Caroline,C., Ryan,G., Chris,M., &Peter,O. (n.d.). Accounting and Corporate Social Responsibility.[Handout]. (Available from http://www.acis.pamplin.vt.edu/faculty/tegarden/5024/handouts/Papers/Accounting%20and%20Corporate%20Social%20Responsibility.docx.pdf
Duff,A., & Guo,X. (2010). Corporate Social Responsibility and the Professional Accounting Firm: Insight from firm’s Disclosures Briefing. Retrieved from http://www.icaew.com/~/media/Files/Products/sustainability/TECPLN9787%20CRS%20Briefing%2016%20Dec%20Final.pdf
Lusher, A, L. (2012) What is the Accounting Profession’s Role in Accountability of Economic, Social, and Environmental Issues? International Journal of Business and social Science , 3(15), 13-19
The Importance of Social Responsibility.[n.d.]. Retrieved from the Web site: http://socialresponsibility.vinsign.com/importance-social-responsibility.html
What is Social Responsibility. [2013]. Retrieved from the Web site: http://www.imasocialentrepreneur.com/social-responsibility/
Caroline,C., Ryan,G., Chris,M., &Peter,O. (n.d.). Accounting and Corporate Social Responsibility.[Handout]. (Available from http://www.acis.pamplin.vt.edu/faculty/tegarden/5024/handouts/Papers/Accounting%20and%20Corporate%20Social%20Responsibility.docx.pdf
Duff,A., & Guo,X. (2010). Corporate Social Responsibility and the Professional Accounting Firm: Insight from firm’s Disclosures Briefing. Retrieved from http://www.icaew.com/~/media/Files/Products/sustainability/TECPLN9787%20CRS%20Briefing%2016%20Dec%20Final.pdf
Lusher, A, L. (2012) What is the Accounting Profession’s Role in Accountability of Economic, Social, and Environmental Issues? International Journal of Business and social Science , 3(15), 13-19
The Importance of Social Responsibility.[n.d.]. Retrieved from the Web site: http://socialresponsibility.vinsign.com/importance-social-responsibility.html
What is Social Responsibility. [2013]. Retrieved from the Web site: http://www.imasocialentrepreneur.com/social-responsibility/