Chapter 12 Tomorrow’s Accounting and Society’s Future Contemporary issues in Social Accounting

Chapter Structure Accounting as a Social and Institutional Practice Accounting, Ethics and the Business World Sustainability, Socially Responsible Investment and Social Audits Contemporary Issues of Social Accounting in the Public and Third Sectors Cooperatives, Family Business and Tax Future directions/paradigm change

Accounting as a Social and Institutional Practice Social dimensions of accounting Pervasive and enabling characteristics of accounting Accounting is a calculative practice that infiltrates the contemporary world in a myriad of diverse ways The role of accounting

Accounting, Ethics and the Business World Increased need for accountability and ethical behaviour What is ethical? CSR in developed countries CRS in developing countries 5 dimensions

Sustainability, Socially Responsible Investment and Social Audits Triple Bottom Line (TBL) Initiatives promoting integrated thinking and sustainability strategies Gaps in the fundamentals of both the TBL and sustainability reporting Volatile future of sustainability reporting Sustainable responsible investment (SRI) Social movement audit

Contemporary Issues of Social Accounting in the Public and Third Sectors Public sector accounting The need for public accounting Economic crisis of 2008 Third sector organisations (TSOs) - Accountability in TSOs

Cooperatives, Family Business and Tax Cooperatives and its main aim Family business and its main aim ‘who governs’, ‘board roles’ and board ‘relationships with management’ Tax as a core element of a socially responsible organisation

Future directions/paradigm change Gap between what organisations do, what they are willing to report, and the rights of society Globalisation: increases international investment and trade reduces the risk of missed investment opportunities enables comparability Globalisation affects accounting and CSR practices and vice- versa

Future directions/paradigm change (continued) Dimensions of Globalisation: Political Technological achievements Economic developments Globalisation and MNCs

Future directions/paradigm change (continued) Is the existing regulation enough or not? Can accounting practice help to alleviate these cultural and political differences and facilitate greater social accountability? How can transparency be achieved if not all countries are subject to the same regulations? What implications will Brexit and the US situation have upon society? What implications will this have upon the environment and ultimately society? Can organisations use accounting as a means to alleviate potential implications of such issues?

Chapter summary Discuss the realities and myths of social accounting in relation to tomorrow’s accounting and society’s future Reiterate the role and importance of Accounting as a social and institutional practice Summarise the influence of globalization and political uncertainty on social accounting Assess the value of the notions of sustainability, Socially Responsible Investment and Social Audits Discuss the role of social accounting and accountability on the public sector, third sector, cooperatives and family businesses Discuss the future directions of accountability and social accounting