SOCIAL ACCOUNTING ESSAY

AMAYA TRIANA KELLY VANESA

LEÓN RAMIREZ LEIDY YINET

JOSE MANUEL MORA

teacher

UNIVERSITY OF CUNDINAMARCA
FACULTY OF ADMINISTRATIVE, ECONOMIC AND ACCOUNTING SCIENCES
PUBLIC ACCOUNTING PROGRAM 501
FACATATIVE
 Summary
Social accounting clarifies different models that can be very important in the economic
environment and the functions they can have within this entity, where it is also related to
companies, communities, the nation, government entities, they have a very essential
objective such as evaluating, analyze and control said information to be able to give very
specific and objective points of view that can deduce things that may be very difficult to
have a vision can be deduced.
Making a relationship of responses between the social, economic, cultural, social
responsibility, etc. based on the different events that occur in the business world.
Keywords: social accounting, social responsibility, social balance , analysis, global
economy.

INTRODUCTION
Economic activity refers to a series of very important elements which we can call social
accounting. Where we must analyze a series of very important aspects that have a lot to do
with historical reality, legal and political laws.
Having a series of very relevant objectives such as showing the economy of a country,
seeing it from a micro and macro point of view, we can see the different situations that are
presenting themselves in order to take them to the background to be able to analyze them
and conclude what it's happening.

Richard Stone , who states that Social Accounting “is a practical means of describing what
happens in an economy, to the extent that it can be expressed, in terms of transactions, in a
set of accounts established with the principle of the item double". The importance of social
accounting is very essential since it helps us interpret the different economic situations in
an entity, the process that is being carried out, but first the respective analysis of what was
observed must be done in order to also be able to carry out their respective conclusions for
decision making.
Being able to relate in such a way the relationship that exists between social and accounting
where they also have a lot of influence at a global level having many points of view of great
relevance.
Social accounting:
Relationship between social and accounting in the global sphere.

In the first instance we must make an approach from the accounting to the social, where
accounting is established as a social discipline that has been able to accommodate the
systems proposed by man, accompanying him in his evolutionary process and that
systematically tries to discover; constantly questioning yourself about disturbing situations
that could be considered problems; working as a true discipline that tries to show reality
based on its way of seeing a certain situation.
The social factor has never been separated from the financial world, in fact, the social
impact of companies is evident from their very origin, where the evolution of societies and
the ways of life that man has created have been linked to the development of the business
world. This is how when business activity occurs in a society, a relationship of mutual
feedback and constant transformation is generated, so much so that companies in the
fulfillment of their corporate purpose look in society and in the environment in which they
interact for the necessary resources to fulfill their objectives and in the same way, societies
look for products and services that companies offer that satisfy their needs or remunerated
activities that allow them to survive in the current economic systems.
We can refer to social accounting to the affairs of the company as such, referring to all the
information that an entity can generate, highlighting different social aspects in which
various factors of some activities can be involved, such as: community, workers,
motivation, culture and some relevant aspects of the group.
But we also have to take into account very relevant aspects such as social responsibility
within a company can be very essential since you can see the functioning of certain entities,
what we must improve or what is in a very favorable stage for the entity; When companies
talk about this responsibility, it refers to the form of management, the relationship with
debtors, suppliers, shareholders, clients, etc. having different commitments with these.
We can also ask a big question: is there any relationship between social and
accounting?
The answer to this would be very true since one is the complement of the other taking into
account that when we talk about the social we refer to the relationships that are had with the
different members of the entity, whether internal or external where they have to interact. to
be able to obtain good communication and reach very favorable agreements for decision
making, but this also has a lot to do with accounting since it is responsible for deducing the
financial statements such as the income statement, the balance sheet, the cash flow
statement, the statement of changes in equity and the statement of changes in the financial
situation, after obtaining this, these statements must be analyzed to see in what situation we
find the entity's profits and losses in order to be able to take the appropriate decisions.
Social complexity has a close relationship with the financial system, economic system and
administrative system since one is dependent on the other and is like a complement so that
everything can work better, for example, administration depends on accounting since it is
said that This is the heart of administration because it is responsible for providing
information that can help in decision-making, the creation of policies and the planning and
control of different functions of the company; Because if the administrator does not have
information on the accounting part, he will not be able to make decisions or know how it is
working. In conclusion, he will not be able to manage or carry out his organizational
operations.
Social reality is disseminated in complex expressions resulting from the multiple
relationships between various agents (State, company, communities, etc.) and is
apprehended by accounting, under a scientific approach from various branches in the micro
and macro sphere, with the aim to conceive it, measure it, analyze it, evaluate it, report it
and control it.” Social accounting offers a range of possibilities in the micro category
(accounting for human and intellectual capital, natural resources and the environment,
cultural, social responsibility, etc.) and macro (national accounting and social aggregates)
for “build from a disciplinary perspective a series of responses to the economic and social
needs that arise from the contradictions presented by the social diaspora.”(machado, 2004,
pág. introduccion)
Which means that it is necessary to know the importance of accounting in the social field,
either in a general aspect where there is the possibility of inducing accounting in the
community, both accounting and in social areas with the objective of contributing to
knowledge and accounting practice.
How does social accounting affect different countries?
The social life of different countries reflects situations of poverty, environmental
deterioration, corruption and other situations that harm a country in all its aspects; not only
socially but also economically and culturally, affecting citizens, families and organizations.
The level of unmet needs is quite high, especially in some underdeveloped or developing
countries. Some of these needs are the lack of education, there is hunger in these nations
and some human rights are violated.
“Today's world discusses globalization and the assumption of the free market economic
model, which rethinks the role of the State in economic and social development”(machado,
2004, pág. 177) .
Practically, society privileges both the public and private sectors, in the financial sphere
and in social life in general. As mentioned above, high levels of dissatisfaction with basic
needs generate tensions between countries, departments and regions that destabilize
coexistence between their citizens.
Social accounting can be studied from its different disciplines or fields of study, naming
some from a micro point of view that studies citizens, workers, clients, among others; and
from a macro point of view that is dedicated to studying the state, companies and
communities.
From a systemic perspective, the social is related to social systems, which are composed of
social agents and their interrelationships. These interrelationships can be between the
agents themselves and the ecosystems, through the use of technologies. Social systems are
related to the cultural and environmental in different aspects; These systems have evolved
with humanity, as a way of responding to contradictions and the dynamics of power and
control relationships.
“Given the systemic connotation of society, there is an increasing need for information
systems that efficiently cover the different areas of interest, in order to rationalize and
optimize, from a collective point of view, the various processes. Here accounting plays an
important role as the accounting information must cover the scope of economic activity not
only from said criterion, but also from the social one, that is, it must correspond to a
merged approach in correlation with social responsibility.”(Castro) .
But society currently, as a general characteristic, pays more attention to the economic and
financial, leaving aside social reality in all its aspects, when the truth is that society is
closely related to accounting and this relationship is not fully known or is unknown for
certain reasons. complete. But after discovering this accounting-society relationship,
society is observed as a field of study, finding many important elements to develop this
study but which are so widespread in all human fields that it is impossible to simplify all
these aspects of human reality so much. at an individual and collective level and what can
we say about cultural traditions and aspects related to the environment, therefore it is
impossible to simplify all these aspects into a few elements but it is possible to establish
connections of that social diaspora of reality (economic, political and cultural).
But in these accounting studies, emphasis cannot be placed on some fields because
simplifying and establishing connections would leave aside other elements of the social
field with which valid connections can also be established. What is sought is to reach a
field of convergence where the accounting community and all social fields at a micro,
macro, technical, technologist and professional level come together to achieve a financial
calculation where the social is conceived in its entirety and go from a world that interprets
its visions in a Cartesian way to integral approaches where the holistic vision allows
complexes of contemporary philosophy and sciences.

In this order of ideas, to understand social reality it is necessary to have models that
consider both the various attributes of society and their relationships, which is why social
accounting is not only based on regulatory aspects but also considers the scientific and
educational heritage. This way we can offer quite accurate responses to social problems,
their origins and sequences in dynamic contexts. In today's world, the social reality shows
problems of poverty, bio-environmental deterioration, security problems, ungovernability,
an increasingly marked gap between rich and poor, violence, technological backwardness
and a growing level of unsatisfied basic needs that are accentuated in the third world or
developing countries, where there are situations of hunger, unemployment, and problems of
education, health, recreation or human rights are not addressed.
Currently the world discusses the free market model promoted by companies that have
grown worldwide in what is known as globalization since this model rethinks the role of the
state in the social and economic development of nations so much so that many see the
supremacy of the market as ruler of the destinies of the globalized world, displacing the
responsibility of governments.
However, there are those who defend the work of governments and advocate a mixed
model where governments can regulate the market and that the state not only dedicates
itself to the basics of protection, security and legality, leaving housing, health and education
abandoned. which are fundamental sectors in social equity, however in a marketing society
these would be goods of a privileged society since these rights would be treated as
merchandise.
What is the role of social accounting in the public sector?
“social accounting in the public sector comes to correct the deficiencies of public financial
accounting regarding the generation of information pertinent to said social facts, especially
regarding the evaluation of the economic and social contribution; for the service of the
community that identifies the public company, it does not report on investments in human
resources, on the state of objectives, on the state of added value, on the state of origin and
application of the social surplus.” (Accounting notebook. author Braulio Rodríguez Castro).
Social accounting is a branch of accounting which is very important since it is closely
related to responsibility in the public sector, which helps to make better decisions for the
proper functioning of said community by determining the management of different
resources. of the state; all this is closely related since it helps us see the different points of
view on the matter, deducing everything that can help us so that a company can become
useful in the future at a global level and can provide us with new ideals so that there may be
a very good financial analysis.

What is the influence of social responsibility in society?

It is feasible to state that the concept of corporate social responsibility, under the
connotations that it has taken on in recent decades, has its origin in two fundamental
aspects:
First. The awareness on the part of workers regarding the defense of their rights, at the end
of the 19th century, which led them to pressure for their freedoms and the improvement of
their quality of life.
 Second. The awareness, in the 60s, by civil society regarding the state of the environment
and natural resources. Which led society to pressure the business sector to rethink its
behavior. (Herrera, 2009)
As mentioned above, social responsibility implies some very important points of view
regarding business where it must be taken into account that everything must be carried out
with sufficient logical order as long as free competition is maintained; remembering a very
relevant aspect that an accountant must keep in mind, such as public faith, which implies
good management of the company free of fraud; where you have many legal and economic
responsibilities.

Social accounting is divided into three different branches, environmental accounting,

human resources accounting and the ethical reporting approach.
Environmental accounting arose from the incorrect exploitation of natural resources and
their growing deterioration, effects caused mainly by business activities with little
environmental responsibility and their highly polluting activities, generating “a demand
from society” where Companies must incorporate ecological awareness into their
management and decision-making, preserving the social and environmental environment in
which they operate, ensuring that new variables are incorporated into the planning of
organizations and their decision-making processes, such as safety policies and systems.
environmental management.
The second branch of social accounting is human resources accounting, which in turn attempts to
incorporate data on the organization's human capital into traditional accounting information,
valuing it appropriately and attempting to generate usefulness for decision-making related to
personnel. .

Now what happens to the ethical branch of social accounting? In the first instance we must
clarify what ethics itself is. Ethics is understood as the reflective activity that examines
moral criteria, a practical knowledge that clarifies what morality is and how it happens.
In social accounting, ethical information incorporates data related to consumer and
community protection as well as policies and relationships with clients, activities and
donations of a political nature, internal operating policies, actions and measurement of
activities aimed at offering equality of opportunity. opportunities between groups
traditionally differentiated by sex, race, origin, age, etc., activities and policies related to
the well-being of the community, advertising, policies and descriptions of checking the
safety of products and production processes.

“the social performance of the company; model that provides a framework of reference that
includes ethical principles of reflection aimed at substantiating social responsibilities,
guidelines to structure the company's response process to social demands or expectations,
and the implementation of effective responses in each company taking into account their
specific activity and their social environment" (herrera, responsabilidad social empresarial
y contabilidad, 2009)
As mentioned above, for the proper functioning of any organization, some ethical principles
are required. It is also necessary to know the many points of view of each of the individuals
who are part of such an organization in order to analyze the situation that is occurring and
make the changes that are necessary to achieve its proper functioning.

CONCLUSIONS
 Accounting is related to different aspects of daily life such as society, the
environment, finances, among others; where "social accounting" can be highlighted,
which is involved in all human aspects regarding the micro and macro in each of the
individuals.

 Social responsibility plays a very important role in accounting because total

dedication by the accountant in their work is required for the proper functioning of
the company or entity.

 Social accounting also has a lot to do with the global sphere since the societies of
some countries live in unfortunate situations and require attention from one of the
different entities.

BIBLIOGRAPHY
Arevalo, J. A. (2013). contabilidad y responsabilidad social:un camino por recorrer.

Castro, B. R. balance social en el ambito del sector público.

herrera, a. c. (2009). responsabilidad social empresarial y contabilidad.

herrera, a. c. responsabilidad social empresarial y contabilidad: apuntes critcios.

Herrera, A. C. (2009). responsabilidad social empresarial y contabilidad: apuntes criticos.

machado, M. a. (2004). dimensiones de la contabilidad social. Revista internacional de

contabilidad & auditoria , introduccion.

Mancera, R. P. (abril 2009). contabilidad social.