SOCIAL ACCOUNTING: A METHOD FOR ASSESSING THE IMPACT OF ENTERPRISE DEVELOPMENT ACTIVITIES?

SOCIAL ACCOUNTING: A METHOD FOR ASSESSING THE IMPACT OF ENTERPRISE DEVELOPMENT ACTIVITIES?

Chris Pay, Traidcraft Exchange

Opening Summary / Extract

The concept of social accounting is growing in recognition and sophistication. As it becomes one of the foundations of good practice in Corporate Social Responsibility (CSR), interest is growing within large corporations, consultancies and voluntary organisations alike. If larger companies are using a social accounting methodology to assess their social impact, the question sensibly arises as to whether this is something that can be usefully adopted by those seeking to assess the impact of enterprise development activities. Indeed, one of the organisations instrumental in the development of the concept, Traidcraft, is itself concerned with poverty reduction and enterprise development.

This article looks at what social accounting is – where it has come from and it’s present level of development. Alongside this, the relationship of social accounting to other CSR initiatives is considered. Examples of the social accounting methodology being applied in enterprise development contexts are reviewed, before some analysis of the link between social accounting and impact assessment is made.

The conclusion drawn is that social accounting is not a means of, nor an alternative to, impact assessment, but rather a framework methodology into which impact assessment can fit. However, the benefits of the methodology are numerous, including not just an increase in transparency and accountability, but also the development of a focus on organisational learning, the embedding of organisational information systems and the systematic improvement of stakeholder dialogue.

 

~ by theoidha on April 11, 2008.