Evaluation on Companies’ Social Accounting - 2613 Words

Evaluation on companies’ social accounting Executive summary This report explains the concept of â€Å"social accounting† and analyzes the execution of social accounting in the two companies Corning incorporated and AM-PM Glass Company. The analysis is based on the â€Å"good† principles of social accounting and the accordance to the global standards. And the analysis shows that Corning’s sustainability has a better understanding and consideration about the requirement of social accounting and it makes its own evaluation system based on ISO 14001, and build up a series of standards, but the standards of EMS can not match with GRI on the completeness and concreteness. AM-PM begins well in the practicing of social accounting. But it is not that†¦show more content†¦On the positive aspect, social accounting can help individual companies identify and utilize opportunities for cost effectiveness, introduction of profitable eco-friendly products and services, energy saving and environmental protection (Defourny and Thor becke, 1984). Also, both current and future concerns of stakeholders forewarn companies about any possible area of conflict. Yanovsky (2006) further claimed that companies become aware of the probable risk factors that are capable of affecting their business operations, which afford the chance for companies to prepare the coping mechanism. 2.3 Principles of â€Å"Good† and global standards â€Å"Good† accounts must accord a series of principles. In general, good principles of social accounting have to be inclusive, involving dialogue with stakeholders; to be complete, highlighting the key areas of the individual company’s activities; to be embedded within the organization; to be comparable, undergo external verification, and give room for continuous improvements. These principles should take both companies own management practices and the performance measurements comparison with other companies into consideration (Montgomery and Porter, 1991). Such principles have to be incorporated within theShow MoreRelatedWhy The Training Program Is Effective Essay873 Words   |  4 Pagesas accounting clerks need to deal with different ethical dilemmas in the future. For example, supervisors may want accounting clerks to input incorrect financial data so that a company’s financial statements are attractive to investors. 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