CHAPTER 9Social Responsibility Accounting

Traditionally, a business organisation's primary objective is on its economic sustainability. Accordingly, profitability is the main focus. However, this is slowly but surely changing. Organisations and their stakeholders are becoming increasingly aware of the need for socially responsible behaviour. More important, there are benefits for companies that put social responsibility as one of its core values. Hence, the focus of companies now is broader. Many are familiar with the 3 Ps (profits, people, and planet) of a business and its relationship to sustainable development. Besides profits, companies are now focusing on people as well as the planet. Thus, the need to report on the social and environmental impacts of a business entity is paramount.

Essentially, corporate social responsibility (CSR) reporting or sustainability reporting is concerned with trying to present a comprehensive picture of the full extent of the organisation's interactions with its external environment. More specifically, ...

Get Principles of Islamic Accounting now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.