W3-8

items mentioned above in monetary terms. Till

measure most of the enterprises can at least
It is difticultto
benefits are evolved, the
stated elsewhere. valuereport their Contr
of measuring
social cost
added statements". As
of production It added can be
the of "value
by wayto the gross
enterprise
society national
bought-out inputs of the
from
product total value will show
the country. Some of the authorities are ofthethhe iew ha
deducting the value of
acceptable methods of measurement of social cost benefit are devised, an account of he

the company in the form of a narrative

may be givencompany's
Conltrbu
responsibilities dischargedinby efforts towards,
example, the Directors may, their annual report
exchange
state the
increasing
; (iii) satisfactionemployment opportunities ; say staletmen
eradication(iu)rendcruecAinSgLR
in foreign to the customers ; (vi)
pollution;(ü) savingworkers; (v) giving greater exchange : (viii)
satisfaction among products to save foreign of
new Vn
consumption ; (vi) developing
spreading education etc.
benefitsIndia,
In in their annual
there is no legal obligation
statements, on companies
but some
to provide information on social
progressive companies like Cement Corporation
isease
costs and sc,
Ltd., Minerals and Metals Trading Corporation of India and the
Steel Company
Bharat Electricals
Heavy Ltd. are giving, by means of supplementary information, the details of the soCial costs a
operations. We give below a proforma
of social Tata Iron
social benefits as
adapted by companies.
a result of their
Social Accounts
accounting genera
SOCIAL INCOME STATEMENT

( in lakhs)
I. SOCIAL BENEFITS AND COSTSTO STAFF
Current
A. Social Benefits to Staff : year Prevyearious
1. Medical and hospital facilities
2. Educational facilities
3. Canteen facilities
4. Recreation,entertainment and cultural activities
5. Housingand township facilities
6. Water supply, concessional electricity and transport
7. Training and career development
8. Provident fund, gratuity, bonus, insurance benefits
8 Holiday, leave encashment and leave-travel benefits
10. Other benefits
Total Benefits to Staff
B. Social Costs to Staff :
1. Lay off and involuntary termination
2. Extra hours put in byofficers voluntarily
Total Cost to Staff
Net Social Income to Staff-I(A-B)
I. SOCIAL BENEFITS AND COSTS TO COMMUNITY
A. Social Benefits to Community :
1. Local taxes paid to Panchayat/ Municipality
2. Environmental improvements
3. Generation of job potential
4. Generation of Business
Total Social Benefits to Community
B. Social Costs to Community :
Increase in cost of living in the vicinity on
account of the cement plants or a thermal power station
Net Social Income to Community-Ill (AB)
II. SOCIAL BENEFITS AND COSTS TO
A. Social Benefits to General PublicGENERAL
:
PUBLIC
1. Taxes, duties, etc. paid to the
State Governments
SOCIALRESPONS/BILITY, ACCOUNTING

Taxes, duties, etc. paid to the Central Government

W3-9
2.
Total Benefits to General Public
Coststo General Public :
B. Social
State services Consumed-Electricity service
9 Central services consumed-
Dostal services and banking -Telephone, Telegrarms,
Total socialcosts tO general public
Net Social Benefits to General Public-IlIl (A - B)
NET SOCIAL INCOME TO STAFF, COMMUNITY
AND GENERAL PUBLIC (I +||+I)

SOCIAL BALANCE SHEET

( in lakhs)
( in lakhs)
Current Previous
Liabilities
Current| Previous
year year Assets year year
ORGANISATION I. SOCIAL CAPITAL
EQUITY INVESTMENT
1. Township Land
2. Buildings
() Township (Residential
and Welfare Buildings)
(i) Canteen Buildings
SOCIAL EQUITY 3. Township Water
Supply &Sewrage
Contribution by Staff 4. Township-Roads
5. Township-Electrification
II. OTHER SOCIAL
ASSETS
1. Hospital Equipments
2. Hospital Vehicle/
Ambulance
3. School Equipmernts
4. Club Equipments
5. Playground/Park
6. School Buses
7. Others
III. HUMAN ASSETS

Ltd. relating to staff

ILLUSTRATION 1. From the following information taken from the books of Fappropriate heads ;
statement classifying the various items under the
and community benefits, prepare a
20.10,000 Extra work put in by staff and
Environmental Improvements 45,00,000 officers for drought relief 18,50,000
Medical facilities 10.25,000 Leave encashment and leave
Training Programmes 60,75,000 Travel benefits 52,00,000
Generation of Job Opportunities 10.70.000 Educational facilities for children
Municipa! Taxes of staff members 21,60,000
Increase in cost of living in the Subsidised canteen facilities 14,40,000
vicinity due to a thermal power 16.55.000 Generation of business 25.00,000
station 11,25.000
Concessional transport, water supply
 SOCIAL RESPONSIBILITY ACCOUNTNG
XI3-10

sOLUTION FLTD.
COMMUNITY BENEFITS
STAFF AND
STATEMENT RELATING TO

I. Social Benefits and Cost to Staff

(A) Social Benefits to Staff
1. Medical facilities
2. Training programmes 10,11,45,2205,0,5,000000000
3. Concessional transport, water supplybenefits
4. Leave encashment and leave
travel 52,00,000
5. Educational facilities for children of
6. Subsidised canteen facilities
staff members 21,14,460,0,000000
Total 1,54,50,000
(B) Social Costs to Staff
Extra work put in by staff and officers for drought relief 18,50,000
Net Social Benefits to Staff [(A) - (B)] 1,36,00,000
II. Social Benefits and Costs to Community
(A) So.ial Be..ofi: to Community
1. Environmental improvements 20,10,00
2. Generation of job opportunities 60,75,000
3. Municipal taxes 10,70,000
4. Generation to business 25,00,000
Total 1,16,55,000
(B) Social Costs to Community
Increase in cost of living in the vicinity due toa thermal power station 16,55,000
Net Social Benefits to Community (A -B) 1,00,00,000
Social Benefits to Staff and Community 2,36,000

Questions
SHORT/LONG ANSWER TYPE
1. Give briefly the concept of Corporate Social Responsibility.
2. State the main areas of making expenditure as CSR activities.
3. Give briefly the key advantages of CSR for the corporate sector.
4. Narrate briefly the main provision of the Companies Act, 2013 for CSR.
5. Is it desirable to have a separate CSR
department/board in a company ?
6. Do you think that the concept of social responsibilities of business is inconsistent with the pront
objectiveof business ?
7. Explain the meaning of social accounting and give its approaches.
8. Explain the concept of social cost benefit analysis.
9. Explain in brief the various methods of measurement of social costs and
social benefits.
10. Prepare social income statement and social balance sheet with imaginary
figures.
11, What is the position of social cost benefit analysis in India ?
12. What do you understand by Social Accounting ? Discuss its
procedure, advantages and weaknesse
13. Discuss the importance and problems in social accounting.
SOCIAL RESPONSIBILITY ACCOUNTING
XI3-11
14. Discuss the legal, social and environmental factor which affect the business operation from country
to country.
hat is Social Accounting ?Should an auditor be
responsible for auditing and submitting his
-onort on the social actions of the organisation ? Why or why not ?
write a detailed note on social reporting by corporate bodies in India.

Practical Problems|
, Brom the following information taken from the books of Sunagarik Ltd.
relating to staff and
community benefits, yu are required to prepare a statement classifying the various items under
the appropriate heads, required under corporate social reporting :
Particulars ? in lakhs
Environmental Improvements 36.18
Medical Facilities 9.00
Training Programmes 18.45
Generation of Job Opportunities 109.35
Municipal Taxes 19.26
Increase in Cost of Living in the
Vicinity due to Company's Operations 29.79
20.25
Concessional Transport, Water-supply, etc.
Generation of Business 45.00
Leave Encashment and Leave Travel Benefits 93.60
Education Facilities for Children of Staff Members 38.88
Subsidised Canteen Facilities 25.92
33.30
Extra Work put in by Staff and Officers for Drought Relief
Ans. [Net Social Benefit to Staff 172.80 lakhs; Net Social Benefit to Community 180.00
lakhs]