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Sunday, March 3, 2019

Evaluation on Companies’ Social Accounting

Evaluation on companies kindly brood system Executive outline This line explains the concept of accessible account statement and analyzes the execution of well-disposed accounting in the both companies Corning embodied and AM-PM scratch Company. The analysis is based on the pricey principles of kindly accounting and the accordance to the world(a) standards.And the analysis shows that Cornings sustainability has a better understanding and term about the requirement of cordial accounting and it makes its own evaluation system based on ISO 14001, and sort up a serial of standards, but the standards of EMS foundation not go over with GRI on the completeness and concreteness. AM-PM begins well in the practicing of social accounting. But it is not that uncomplicated to do well in all aspects of the social accounting, so it has hardly considered four good principles.While AM-PM enquires both AA1000 and GRI as the evaluation standards to assess its performance, and g ot devolve and systematic report results and good reference to its development in the future. confine Evaluation on companies social accounting1 1. Introduction3 2. Definition and explanation of the concept of loving Accounting3 2. 1 Definition and development of concept3 2. 2 Reasons for producing social accounting4 2. Principles of well and world-wide standards5 3. Critical evaluation on quality of social accounting of ii glass companies5 3. 1 Corning Incorporated6 3. 2 AM-PM scrap & mirror Company8 4. Conclusion10 Reference12 1. Introduction loving accounting is a voluntary process that presidential terms wasting disease to account for their environmental and social impacts. There ar both pros and cons telling why organizations fall to engage with this concept of social accounting.The purpose of the report is to evaluate the two glass companies Corning and AM-PMs social accounting according to the good principles and world-wide standards of social accounting. 2. Defi nition and explanation of the concept of amicable Accounting 2. 1 Definition and development of concept Social accounting refers to the process spoting with organizational assessment and chat of its impacts and activities on relevant issues related to to ethics, nightspot and the environment with their appropriate stakeholders (Yanovsky, 2006).It aims to address companies social and environmental impacts. Social accounting is in addition known as social and environmental accounting, corporate social tariff describe, or sustainability accounting, and variant individual companies usually select different titles, like in Corning, it is called corporate social responsibility report, and in AM-PM glass over & Mirror, it is called sustainability report. The concept of social accounting has got more than 40 years development.Abt Associates is among the early social accounting practitivirtuosors, its social concerns included contribution to knowledge, environment and so on, but there is no specific definition for social accounting. In 1980s, the unequal book Social size up- A Management Tool for Co-operative working is the alkali of the early private sector companies social responsibility reporting (Spreckley, 1981), and Social responsibility reporting is the early relative formal concept.And in this book, an internal organizational social accounting and audit model argon designed to measure individual companies social and environmental performance. And with the development of parsimoniousness and fiat, the concept of social accounting as well gets to a broad and mystifying domain, which includes the evaluation about every aspect of companies social and environmental impacts (Rohinson, 2001 Schwartz and Carroll, 2003). 2. 2 Reasons for producing social accountingThe reasons that individual companies develop social accounting and related reports atomic number 18 as come outs. On the negative aspect, employees internal pressures in their urge of deficient to report the environmental and social impacts of the bon ton (Crane and Matten, 2007) can make companies work out the social accounting and external forces by government agencies, non-governmental organizations, consumers or investors as they seek the federation to disclose its impacts of social accounting can also lead to the social accounting.On the positive aspect, social accounting can champion individual companies identify and utilize opportunities for cost impressiveness, introduction of profitable eco-friendly products and services, push button saving and environmental protection (Defourny and Thorbecke, 1984). Also, both current and future concerns of stakeholders foreknow companies about any possible area of conflict. Yanovsky (2006) further claimed that companies become sensitive of the probable risk factors that are capable of affecting their business operations, which ease up the chance for companies to prepare the coping mechanism. . 3 Principles of Good and global standards Good accounts must accord a series of principles. In general, good principles of social accounting pretend to be inclusive, involving dialogue with stakeholders to be complete, highlighting the diagnose areas of the individual companys activities to be embedded inside the organization to be comparable, undergo external verification, and give room for continuous improvements.These principles should take both companies own guidance practices and the performance measurements comparison with other companies into consideration (Montgomery and Porter, 1991). Such principles have to be incorporated within the organizational structure, be verified by external auditors and be reviewed on regular basis in order in relation to the targets of its performance and cost effective business opportunities. There are some global standards that are useable for companies social and environmental reports.For example, Social Accountability International produced SA8000, and it provides workplace issues standards AccountAblility positive the AA1000S Assurance Standard The SAN framework, which is suitable for third-sector organisations ISO1400, which are series of international standards that deal with issues related to environmental management (Porter, et. al. 2009) and world-wide Reporting Initiative (GRI), which is one of the most practiced standards across the globe and is in its third coevals format (G3). 3.Critical evaluation on quality of social accounting of two glass companies This report provides a critical evaluation of two parapraxis studies of how the organizations have do use of social accounting concept. The Corning Glass and AM-PM Glass & Mirror Company will be used as examples of companies which have fully put into consideration the social accounting concept. It is a reproval of organizational set and evidence-based actions they undertake towards showing concern to their stakeholders in relations with these issues.The evaluation about the two companies is mainly focus on analyzing the acceptation of the good principles and their accordance to the global standards. 3. 1 Corning Incorporated Corning is a international company which has about 160 years muniment. Corning is among the best social responsibilities practitioners. The history practicing social responsibilities began before World War One. The chairman James Houghton displace out Cornings seven collective Values Quality, Integrity, Performance, Leadership, Independence, Innovation, and the Individual.Cornings strategies are based on the attributes of collaboration, risk-taking, and long-term thinking and so on. According to Cornings schema and value system, the best form of corporate social responsibility is equal to simple good business or enlightened egocentrism and the good business is constructed by a series of good behaviors including uninterrupted interaction with customers, local communities and government. The social accounting in Cor ning is named sustainability report. 3. 1. 1 The sufferance of good principlesFirst, Corning emphasizes the care and alimentation of its major stakeholders, especially the care and feeding for its customers and employees, according to Houghtons speech in 2004s company strategy conference. Corning clearly obeys its seven determine and takes a set of stakeholders into consideration. It puts attention to labor, women and minorities. Since 1970s, Corning began made efforts to employee women and minorities (Graham, 2010). Second, Corning has complete consideration on social accounting, and highlights impacts of the companys producing activities to the society and environment.Corning put attention to working conditions, products preventative and efficacy, and the environment. According to Cornings sustainability report, the of import elements of the companies operation excellence are protection safety, health and environment (Graham, 2010). Specifically, in order to protect the air, C orning produces ceramic substrates for catalytic converters and tries to eliminating hazardous chemical materials. Third, Corning has a continuously improvement in practicing the social responsibility. Since 1970 to now, Corning consistently shows its care to its stakeholders and the environment.The upstart sustainability report is also planed for a long degree, and forms a completed environmental protection system, which is including mission, vision, strategy and specific action plans. In process of the dynamism management, Corning track and measure its greenhouse gas dismissal, and conducts its related inventory, also, corning launched a global cipher management program to guarantee the energy productivity and environmental negative influence. Fourth, Corning has got verification from external organization.Corning reports its antecedent greenhouse gas emission and got the Registry from California Climate Action and the Registry can give a consistent supervision on the contin uous execution of the environmental protection and energy management. Fifth, Corning emphasize find the potential improvement, especially those related to performance targets, cost-saving and profitable business opportunities. Corning commits to maintain a long period view of energy and the advanced view require its facilities to utilize energy in a cost-effective and environmentally responsible way.Sixth, corning has embedded professionals related to the social accounting in the process key to success. Cornings greet embeds an environmental, health and safety professional in the designing group. This embedibility enhance the safety and facilitate the health management system in Corning. 3. 1. 2 consistency to the global standards In the year of 2004, Corning developed and deployed an Environmental Management System, short for EMS, whose format and substance follows ISO 14001(Corning Environmental wellness & Saftey Brochure, 2007).ISO 14001 is a very series of recognized global st andards, and it affords clear and specific requirement for the corporate environmental control group in Corning. Corning facilities have gained many benefits through instituting and adopting the management systems, and due to the rigorous execution, the bad influence to the environment has been reduced. Corning has a gain system about EMS, the ISO 14001 stands in the center of the pyramid. And the pyramid shows clear the social accounting procedures. 3. 2 AM-PM Glass & Mirror CompanyAM-PM Glass & Mirror is a residential and commercial glass company that provides exceptional craftsmanship, unsurpassed contentment to their customers and gives prompt service through their sustainable innovation and social accounting concept. The company recently outlined its values and objectives in the annual sustainability report, which breed support to community trade of glass products and its internal judgments on environmental and social performance in relation to achieving its objectives (AM-P M, 2012). 3. 2. 1 The adoption of good principlesAM-PM Glass & Mirror Company follows the three principles of completeness, materiality and responsiveness. First, AM-PMs sustainability report relates to complete contents of the social responsibilities. It has put attention to both deep down and outside of the organization, for example the employee relationships, the sexual and racial ratio, the consideration of the disabled plurality inside of the organization and the communication with communities, the campaigns to protect environment outside of the organization. Second, AM-PMs emphasize the materiality of the action.It stresses that social responsibilities should not only be pen in the sustainability report, it must be based on specific actions first, the true practice result and data of the protection, but not only the plans in the report. Third, responsiveness is the main part that is stressed in the report, it means that AM-PM not only like to be the pioneer in the practice of environmental protection, but also would like follow other companies environmental steps. Forth, the values reported in the sustainability report have been externally verified by auditors and a panel of stakeholders.The customers, employees and the communities all give positive comments on the values and actions of AM-PM. 3. 1. 2 Accordance to the global standards AM-PM Glass & Mirror values follow the AA1000 standards of assurance. And its three principles are from these standards. Also, the company values are compliant with the Global Reporting Initiative (GRI) Level A guidelines. And the third generation strain of GRI gives a series of very clear standards for AM-PM to evaluate its performance comprehensively, which is with wonder to specific assessment according laws, codes, norms, and voluntary initiatives.Specifically speaking, the compilation of AM-PM Glass & Mirror Company report was based on covering all the company activities that is vital as far as environmental and social impacts are concerned (AM-PM, 2012). Its social accounting also responds to issues that arise out of its previous reports. The wholesomeness of this report is also realized in that it covers all the areas that the company operates on as required by global reporting initiative which covers the company management approaches, overall company profile, and the categories for measuring performance. . Conclusion In summary, it can be deduced that social accounting is a voluntary process that organizations use to account for their environmental and social impacts. Both pros and cons exist why organizations answer to engage with this concept of social accounting. The analysis of Corning Glass Company and AM-PM Glass & Mirror gives a specific evaluation about their execution of social responsibilities. The result shows that the two organizations both have embraced the concept of social accounting.Corning incorporated is a big multinational which has long history of practicing social responsibility, and it has abundant experiences to evaluate what kinds of actions would do well to both the company and the environment, and afford benefits to all the shareholders. So in the adoption of good principles, Cornings sustainability report shows that it has a better understanding and consideration about the requirement of social accounting. In the accordance to the global standards, Corning makes its own evaluation system based on ISO 14001, and build up a series of standards.Corning has not used GRI as its standards to evaluate performance. To some extent, the standards of EMS can not match with GRI on the completeness and concreteness. AM-PM is also a glass company that has short history. It enters the glass industry in a new age that stresses environmental protection and the full communication with shareholders. So, it begins well in the practicing of social accounting. But to a new company, it is not that easy to do well in all aspects of the social accounting, so i t has only considered four good principles.While AM-PM did well in the accordance to the global standards, it takes both AA1000 and GRI as the evaluation standards to assess its performance, and got clear and systematic report results and good reference to its development in the future. Reference 1. Spreckley, F. (1981). Social Audit A Management Tool for Co-operative Working. Wales Beechwood College. 2. Rohinson, S. et al. (2001). Updating and Estimating a Social Accounting Matrix Using Cross Entropy Methods. Economic Systems Research. Vol. 13, no47-64. 3. Schwartz, M. S. , Carroll, A. B. (2003). merged Social Responsibility A Three-Domain Approach. Business Ethics Quarterly. Vol. 13, No. 4503-530 4. Defourny, J. , and Thorbecke, E. (1984). Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework. The Economic Journey. Vol. 94, No 373111-136 5. Graham, M. B. W (2010). Corporate Responsibility at Corning. Incorporated. History of Corporate Responsibility Project. No. 7 6. Crane, A. , and Matten, D. (2009). Business Ethics. New York Oxford University Press, p. 9-286. 7. Montgomery, C. A. , and Porter, M. A. 1991). Strategy seek and Securing Competitive Advantage. New York Harvard Business Press. 8. Porter, M. E. , Kramer, M. R. , and Zadek, S. (2009). Corporate Social Responsibility (HBR term Collection). New York Harvard Business Press. 9. Yanovsky, M. (2006). Accounting Systems. London Transaction Publishers. 10. Corning Environmental Health & Saftey Brochure, 2007. Available at http//www. socialfunds. com/csr/reports/Corning_Incorporated_2007_EHS. pdf Accessed 10th JUNE 2012. 11. AM-PM. , 2012. Available at http//www. ampmglass. com/ Accessed 10th treat 2012.

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