Defining Corporate Social Costs: Enhancing the Theoretical Foundations of Corporate Social Responsibility Accounting
https://doi.org/10.62157/ijbefs.v2i2.46
Keywords:
Corporate social costs, Corporate social responsibility, Disclosure, Business society, AccountantAbstract
This study aims to develop a precise definition of the term "corporate social costs (CSCs) "- according to accountants' point of view and identify a set of criteria through which the corporate social cost (CSC) can be distinguished from the corporate economic cost (CEC). Any theoretical study that aims to improve and develop the theoretical structure of any major in the social sciences, such as economics and accounting often relies on the approach of rational thinking and logical inference. Hence, the researcher adopted this approach in studying and analyzing the nature of the costs incurred by companies to fulfill the requirements of legal and ethical responsibilities - which reflect the codified and uncodified desires of the stakeholders concerned with these responsibilities, as well as the nature of the benefits that these costs bring to the beneficiaries. The researcher also adopted the idea of the characteristics that can be deduced from these costs and the activities attributed to them in determining the criteria for distinguishing between CSCs and CECs. This study developed a precise definition of corporate social costs (CSCs) through logical conclusions, consistent with the contemporary concept of corporate social responsibility (CSR). It defined a set of criteria to distinguish CSCs from CECs. Given the scarcity of writings in this field, this study is considered an enrichment of accounting thought in the field of CSR. This study will enhance the ability of companies to disclose their social performance accurately. On the educational level, this study will remove any misunderstanding students may have about the meaning of CSCs.
References
Abu Samra, H. A. S. (2009). Obstacles to disclosing social responsibility in the reports of public joint-stock companies listed on the Palestine Stock Exchange. Research submitted to fulfill the requirements for obtaining a master’s degree in accounting and finance, Islamic University of Gaza.
Ahmed, R. A., Muhammad, A. O., & Abdul Karim, B. A. (2018). A field study on a sample of commercial banks in Sulaymaniyah Governorate and the Garmian Administration: Accounting for social responsibility and its role in improving the quality of banking services. Scientific Journal of China University - Sulaymaniyah, 2(1), 111-130. https://sj.sulicihan.edu.krd/files/2018/02/a88.pdf
Akinpelu, Y. A., Ogunbi, O. J., Olaniran, Y. A., & Ogunseye, T. O. (2013). Corporate social responsibility activities disclosure by commercial banks in Nigeria. European Journal of Business and Management, 5(7), 173-185.
Al-Fadl, M., Nour, A., & Al-Dawjaji, A. (2002). Contemporary accounting problems. Dar Al-Masirah for Publishing, Distribution and Printing.
Al-Ghazwi, H. A. (2010). Contemporary accounting problems. Arab Academy in Denmark, Department of Accounting.
Al-Humaidi, S. H. (2017). Analysis of the concept of social costs and the problems of measuring them. College of Administrative Sciences, Kuwait University. https://atasu.journals.ekb.eg/article_41517_2356a9c637fd6122b108b88501eb134b.pdf
Al-Shirazi, A. M. (1990). Accounting theory (1st ed.). Al Salasil Printing, Publishing and Distribution.
Asemah, E. S. (2022). Understanding corporate social responsibility. Franklead Printing and Publishing Co. ISBN: 978-978-945-710-6
Ashforth, B., & Gibbs, B. (1990). The double-edge of organizational legitimation. Organization Science, 1, 177-194.
Balakrishnan, R., Sivaramakrishnan, K., & Sprinkle, G. B. (2008). Managerial accounting. John Wiley & Sons, Inc.
Bazmawy, M. H. (2002). Measurement and disclosure of social measures in industrial establishments (Unpublished master’s thesis). University of Aleppo, Syrian Republic.
Bin Hamada, A., & Bourkaib, N. A. D. (2022, February 2). Obstacles to applying social responsibility accounting as a foundation for embodying the dimensions of sustainable development in Algerian institutions. The American International Journal of the Humanities and Social Sciences.
Boulasnam, M., & Ben Faraj, Z. (2012, February 14-15). Factors affecting social disclosure: A case study of the Arab Potash Joint Stock Company. Presented at the International Forum "Business Organizations and Social Responsibility," Taheri Muhammad Bashar University.
Branco, M. C., & Rodrigues, L. L. (2008). Factors influencing social responsibility disclosure by Portuguese companies. Journal of Business Ethics, 83(4), 685-701.
Brown, N., & Deegan, C. (1998). The public disclosure of environmental performance information – A dual test of media agenda-setting theory and legitimacy theory. Accounting and Business Research, 29(1), 21-41.
Cabeza-García, L., Fernández-Gago, R., & Nieto, M. (2018). Do board gender diversity and director typology impact CSR reporting? European Management Review, 15, 559–575.
Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, 4(4), 497–505.
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34, 39–48.
Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research, and practice. International Journal of Management Reviews, 12, 85-105.
Carroll, A. B. (2016). Carroll’s pyramid of CSR: Taking another look. International Journal of Corporate Social Responsibility, 1(1), 1-8.
Čavalić, A., & Bećirović, D. (2018). Employee perception of corporate social responsibility in Bosnia and Herzegovina. Poslovna Izvrsnost Zagreb, 12(1), 117. https://doi.org/10.22598/pi-be/2018.12.1
CEC. (2001). Green paper promoting a European framework for corporate social responsibility. https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2001:0366:FIN:EN:PDF
Chiang, C. S. (2010). How corporate social responsibility influences employee job satisfaction in the hotel industry (Master’s thesis). University Libraries, University of Nevada.
Coffie, W., Aboagye-Otchere, F., & Musah, A. (2018). Corporate social responsibility disclosures (CSRD), corporate governance, and the degree of multinational activities: Evidence from a developing economy. Journal of Accounting in Emerging Economies, 8(1), 106-123. https://doi.org/10.1108/JAEE-01-2017-0004
Costa, R., & Menichini, T. (2013). A multidimensional approach for CSR assessment: The importance of stakeholder perception. Expert Systems with Applications, 40(1), 150-161. https://doi.org/10.1016/j.eswa.2012.07.028
Davis, K., & Frederick, W. C. (1984). Business in society (5th ed.). McGraw-Hill.
Davis, O. A., & Whinston, A. (1992). Externalities, welfare, and the theory of games. Journal of Political Economy, 70(3), 241-262.
Deegan, C. (2002). Introduction: The legitimizing effect of social and environmental disclosures—a theoretical foundation. Accounting, Auditing & Accountability Journal, 15(3), 282-311.
Dilley, S. C., & Weygandt, J. J. (1973). Measuring social accounting: An empirical test. The Journal of Accountancy, September, 62-70.
Dunn, C. P., & Burton, B. K. (2006). Friedman’s “The social responsibility of business is to increase its profits”: A critique for the classroom. International Association for Business and Society. https://www.researchgate.net/publication/288713811_Friedman's_The_Social_Responsibility_of_Business_is_to_Increase_Its_Profits_A_Critique_for_the_Classroom
Estes, R. W. (1976). Corporate social accounting. John Wiley & Sons.
Feltovich, N., Slonim, R., & Briscese, G. (2021, April 3). The hidden costs of corporate social responsibility. Centre for Economic Policy Research (CEPR). https://cepr.org/voxeu/columns/hidden-costs-corporate-social-responsibility
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
Freeman, R. E. (2009). Managing for stakeholders. In T. L. Beauchamp, N. E. Bowie, & D. G. Arnold (Eds.), Ethical theory and business (8th ed., pp. 56-68). Pearson Prentice Hall.
Friedman, M. (1970). The social responsibility of business is to increase its profits. The New York Times, 122-126.
Ghozali, I., & Chariri, A. (2007). Accounting theory. Diponegoro University Publishers.
Gray, R., K., Reza, & L. Simon. (1995). Constructing a research database of social and environmental reporting by UK companies. Accounting, Auditing & Accountability Journal, 8, 78-101.
Haataja, D. (2020). Stakeholder theory: The new story of business. Department of Business Studies, Uppsala University.
Hanan, R. H. (2003). Alternatives to contemporary accounting measurement. Wael Publishing House.
Hooghiemstra, R. (2000). Corporate communication and impression management—new perspectives on why companies engage in corporate social reporting. Journal of Business Ethics, 27(1-2), 55-68.
Hopkins, M. (2014). What is corporate social responsibility all about? Journal of Public Affairs, 6(3-4), 298-306. https://www.researchgate.net/publication/27283275_What_is_CSR_all_about
Hu, Y. Y., Zhu, Y., Tucker, J., & Hu, Y. (2018). Ownership influence and CSR disclosure in China. Accounting Research Journal, 31, 8–21.
Ibanga, D. A. (2018). Is there a social contract between the firm and community? Revisiting the philosophy of corporate social responsibility. International Journal of Development and Sustainability, 7(1), 355-380.
Iheduru, N. G., & Chukwuma, I. R. (2019). Effect of environmental and social cost on performance of manufacturing companies in Nigeria. International Journal of Accounting & Finance Review, 4(2), 5-12.
Ismail, M. (2009). Corporate social responsibility and its role in community development: An international perspective. The Journal of International Social Research, 2(9), 199-209.
Kapp, K. W. (1975). The social costs of private enterprise. Schocken Books.
Khaddour, R. (2011). Social responsibility of the business sector. The twenty-fourth economic symposium on economic and social development in Syria. Syrian Economic Sciences Association. https://www.csrsa.net/sites/default/files/11-khadour.pdf
Kotler, P., & Lee, N. (2005). Corporate social responsibility. John Wiley & Sons, Inc.
Laskar, T. (2020). What lies behind the formation of corporate social responsibility activities in the automotive industry: A study on the disclosure practices at Volvo Cars. Uppsala University.
Leguel, S., & Zamali, N. (2016). Social responsibility: Concept, dimensions, standards. Journal of Humanities and Social Sciences, 27, 301-308. https://dspace.univ-ouargla.dz/jspui/bitstream/123456789/13539/1/S2722.pdf
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Author
This work is licensed under a Creative Commons Attribution 4.0 International License.
