Finacnce

Opportunities on social accounting:

Social accounting is a new area in mid-80s but now we know the important of the social accounting. Nowadays, social accounting developed very fast in the world and many companies recognized that the long- term benefit are most important than the short- term profit. The company that faced the opportunity on social accounting, like as corporate social responsibility (CSR). “Earlier, CSR was primarily understood as a local concept with a limited sphere of influence, whereby a company's responsibility was confined to the community in which it operated. Today, it is understood in much broader terms and is about companies adopting and implementing global CSR policies to the benefit of society.”

Opportunity for the companies which adopt social responsibility accounting(SRA) mainly have three points: positive financial implication, enhance the image of the company, company’s ability to develop solution for economic and social problem. First, the SRA disclosures result in the publication of different ideas on environmental issues. This will help the companies have a mature and stable outlook. The economic and social purpose of the corporate is to create and distribute increased wealth and value to all its primary stakeholders groups. Second, most of companies do the CSR activities because they have to do or they cannot survive. They must to built a good image of the company. The companies cannot operate without the society, they must give the people a good imaging. On the other hand is because the intense competition the other companies do the activities if you don’t do it you will loss the market.

Companies also can help to solve the social problem especially after the natural disasters. When Wen-Chuan was during the earthquake, many companies over the world give the donation to help the people in Wen-Chuan. These companies kindly help like a brightly sunshine in the people’s heart. The CSR played a important role when the...