SOCIAL ACCOUNTING

Social accounting is not a means of, nor an alternative to, impact assessment, but rather a framework methodology into which impact assessment can fit.

Social accounting is a way of demonstrating the extent to which an organization is meeting its stated social or ethical goals.

The process should involve all three steps:

 internal data collection and analysis procedures (accounting);
 an independent audit of the results (auditing);
 a mechanism for disseminating the outcome more widely (reporting).

For those organizations, the increase in trust that it may be possible to generate through improved accountability and transparency is more likely to outweigh the considerable cost of carrying out the exercise.

Fundamental to social accounting is the concept of accountability, aided through increased transparency. One of the most positive features of social accounting is that it encourages change within the organization.