Social accounting -factor for developing the enterprise's internal and external environment

• Author: Ungureanu, M.
• Position: PhD Student, Alexandru Ioan Cuza University of Iasi
• Pages: 169-176

Bulletin of the Transilvania University of Braşov • Vol. 5 (54) •No. 1 - 2012

Series V: Economic Sciences

SOCIAL ACCOUNTING –

FACTOR FOR DEVELOPING

THE ENTERPRISE’S INTERNAL

AND EXTERNAL ENVIRONMENT

Mihaela UNGUREANU1

Abstract: Social responsibility represents a strategic approach that allows

an economic entity to anticipate and solve its problems with third parties, for

long-term successful projects. Thus, reputation becomes an invaluable asset

which, although intangible, should be used with caution. This paper aims to

analyze the role of the traditional accounting system, reflecting the impact of

economic activities on the social environment in which they operate. It also

makes reference to the opportunity to implement the concept of social

accounting into enterprise practice, mainly by analyzing social policies’

costs and benefits.

Key words: social accounting, SA8000, social balance sheet, performance.

1 PhD Student, Alexandru Ioan Cuza University of Iasi.

1. Introduction

The economic environment is

increasingly intertwined with the social

one, so that the performance of a company

no longer refers only to financial

performance, as social performance is also

targeted, and increasing organizational

value can not ignore the interests of

shareholders, employees, business partners

etc.

Nowadays, in a socio-economic climate,

strongly influenced by phenomena such as

globalization, modernization business,

opened financial and labour markets, a

company no longer belongs only to its

owners, but to the entire community in

which it operates.

Given the economic and competitive

changes caused by the acceleration of

globalization, companies must remain

competitive in the long term, so that the

quality of goods and services and the

maximization of short term profits are not

sufficient conditions any longer. A

socially-responsible behaviour is

increasingly becoming a key success factor

because it differentiates companies on the

market, the preferred ones being those that

contribute to sustainable development.

The term “social” is ambiguous because

it covers, in general, facts related to the

human dimension in business, but also

environmental relevant facts in a broad

sense (business stakeholders and society as

a whole).

Beyond this semantic difficulty, the

content of social responsibility can be

perceived in two ways. The former

considers that the company accomplishes

social responsibility when it carries out all

legal and regulatory obligations; the other

one, more extensive, considers those