Concept, Practice and Role of Social Accounting in Corporate Organizations

The paper discusses the concept, practice and role of social accounting in corporate organisations in Nigeria as well as the benefits of engaging in Social Accounting practices. Social accounting is the process whereby organisations account for their social, environmental and economic impacts. The main focus of social accounting is mainly on issues of social nature which can develop between organisations and society. In essence, it broadens accounting beyond financial success. The practices include a wide range of activities such as: community development, health, safety, in addition to welfare at work for the employees, the involvement of employees in the decision making process, policy and performance of the company. Literature review revealed that despite the various benefits of social accounting practices, only very few multi-national organisations in Nigeria engaged in the practice. The study, therefore, concluded that there is a need for multinational companies and other corporate bodies in Nigeria to embrace social accounting and change their orientation in order to emphasize their social relevance in the society.