Introduction
The state is the main mediator in the area of social responsibility, playing the role of the administrative element and executor of predetermined policies, the result of a consensus effort to determine the use of resources provided by society.
Accounting becomes a direct part of the social system, in order to conceive it, measure it, analyze it, evaluate it, train it. And control it.
In the same way, it is identified through the MACRO and MICRO conceptions to build from their perspective a series of responses to economic and social needs, which arise as a result of the emerging problems of social life.
There is a series of paradigms that make it difficult for many to relate “accounting with the social”; however, the social is simply found in human reality (individual and collective).
It is not logical to simplify the social reality, it is necessary to relate it to the financial, administrative and economic reality.
Social accounting fundamentally seeks the harmonization of social areas with accounting practice, because in addition to admitting it as a normative discourse, it stands as a fruitful branch of accounting from the context of scientific knowledge, which provides answers to social problems, its causes, manifestations and projections in a dynamic environment.
Social accounting concept
The new social responsibilities that appear for the company, suppose the increase of informative demands, both from the outside and for and for the management of the entity.
The companies have been preparing a series of information to meet these demands. The grouping of all these data has been called in various ways such as: company social information, information or accounting on social responsibility, social-based information, social accounting, etc.
With the aim of homogenizing the nomenclature, we will call them social accounting, which includes the information generated by the entity to reflect various social aspects on which its activity may impact, such as issues related to employees, the social community, the environment. environment, ethical issues, among others.
There are various definitions and conceptualizations of what is understood by social accounting:
- Accounting is the technique and / or science of measurement and interpretation of activities and phenomena that are essentially economic and social in nature. Presentation of financial information about the costs and benefits related to the impact of the company's social behavior. Periodic presentation of a social report of the entity based on the expansion of the accounting objectives on employees, services to users and the prevention or reduction of pollution.
Theories of social accounting
1. Market functionalist paradigm
This paradigm incorporates all the theories based on neoclassical economic theory and classical management theory. The arguments used to explain the presentation of information are those related to the market.
Some of the main ideas that they hold are the following:
- The objective of social information is to offer useful data to shareholders and financial markets, as it can influence the valuation of shares. The basic user of the same is, therefore, the investor. The defenders of these positions consider that no requirement regarding the social responsibility of the entities should be imposed, since it is considered as an incorrect application of the funds of the shareholders The maximization of social satisfaction is achieved through the free market.
These are, then, the traditional positions in which the operation of the market is the one that explains all the actions related to the preparation and presentation of various types of information, in which that of a social nature occupies an increasingly relevant position.
Therefore, this paradigm is supported by purely economic justifications.
2. Interpretive or social paradigm
This interpretive paradigm is based on social arguments that consider the existence of a social world with a plurality of user agents of the social information generated by economic entities.
Social-based information is no longer directed primarily at the investor, but is also of interest to employees, customers, the general public, administrations and public bodies.
The response of the capital markets to social accounting is not so relevant for the new user groups, but rather it is necessary to address a moral debate regarding the performance of companies in the society in which they operate.
These arguments are used when the information of the social type is presented to establish the moral nature of the company in order to satisfy its social contract and to legitimize and justify the activities of these entities before society in general.
3. Radical paradigm
It consists of lines of thought with a critical approach to the existing situation.
It is based on the arguments of "critical theorists" who believe in an alternative model of society to the current one, as well as a different role for accounting.
One of the dominant theories is political economy, which rejects market solutions and considers that the structure of society is what determines everything that happens in it.
As organized, the accounting profession is dedicated to maintaining status by joining one of the parties to the social conflict (capital) and excluding itself from the other party (the worker).
The accounting profession mystifies the processes to exercise power, based on the values of the marginal economy.
Accountants ignore the extent to which discipline has been and is being built within society.
Radical authors consider that accounting should drastically change its thoughts, incorporating new points of view in its information.
The complexity of the social
The social reality of the countries of the world reflects situations of poverty, bioenergetic deterioration, physical and social insecurity, concentration of wealth and ungovernability, from the conditions of misery, technological backwardness, violence, inequality and corruption that affect their citizens.
The existence of high levels of dissatisfaction generates a climate of tensions that is felt in the countries, these tensions are produced by the relationship and interests of the various agents on a micro scale (citizens, workers, clients) and macro (community, state and companies) who develop and participate in social life.
As a way to alleviate these tensions, it is proposed that the community regulate the economic and social system, where the market and the state are the essential elements to satisfy social needs.
Faced with these shortcomings, the disciplines must study and solve the problems raised, while the professions must develop the decisions and applications essential to satisfy the felt needs of society.
Main branches of social accounting
Environmental accounting: one of the most relevant ramifications of social accounting today.
The growing deterioration of the environment caused by human activity, is mainly caused by business activities in industries.
This has generated a demand from society for companies to incorporate within their management the objective of preserving the social and environmental environment in which they operate.
The accounting of human resources: involves the incorporation in the information presented by the accounting of one of the fundamental components of the organization such as human capital.
The purpose of this is the valuation of the human capital of the company and the preparation and presentation of information related to it.
This branch of accounting, arises today due to the new requirements raised by the social responsibility of companies. As for environmental accounting, it is proposed to incorporate it both for its usefulness in the internal or management sphere and externally.
Different techniques for valuing human capital have been proposed:
- Historical opportunity cost value Compensation cost Replacement cost Discount of future wages Economic value
All these valuation techniques must be based on the number of employees in each category in the company.
Economic measurements should be complemented with non-monetary measurements to have a more accurate knowledge of the reality of human capital within the entity.
The information of an ethical nature: deals with the ethical values of the company where data related to the actions of the company related to the protection of the consumer and the community, or the provision of aid or services to society are incorporated without the intention of profit.
The main aspects involved in this type of information are:
- Policies and customer relations Activities and donations of a political nature Action and measurement of activities aimed at offering equal opportunities Political activities related to the well-being of the community Product safety verification policies and descriptions
summary and conclusions
The current social responsibility that companies face today requires the need to prepare and present information on activities related to the social environment of institutions. From this, social accounting arises.
This branch of accounting incorporates different social aspects, of which human resources, the environment and an ethical nature stand out.
Accounting as a field of knowledge, has been born, has developed and aims to overcome its contradictions in relation to social needs; Its reason for being focuses on meeting the needs of communities, the state, the market and companies.
As a conclusion, the entities must develop information systems that incorporate social aspects in a clearer and more structured way, so that their actions in certain social fields are justified. This information must satisfy decision-making both externally and internally.
Social accounting shows the economic results and the impact generated by the production process inside and outside the company.
Bibliography
Machado R., Marco Antonio. International journal law of accounting and auditing No. 10
Accounting and social reality. Asfacop Magazine No. 7, Colombian Association of Public Accounting Faculties. March 2003, Santa Fe de Bogotá.
Maldonado, José J. And others. Accounting and Social Balance. Bogota Department of accounting sciences - Universidad Javeriana, 2000.
