Corporate Social Reporting to the Stakeholders - Essay Example

? Corporate social repotting to the stakeholders Corporate social repotting to the stakeholders Introduction Corporate social responsibility that relates entirely to corporate social repotting refers to organizational impacts to the environment and the company benefit from the sale of commodities (Sims, 2003). Corporate social responsibility concerns having sufficient effect to the society by offering adequate protection to local or any other investment before considering the money invested in foreign countries. There are several ways through which an accounting professional is involved when it comes to the issues of environmental corporate social responsibility. This is in contrary to the normal accounting basic that has been known about debiting and crediting financials. With the current business trends, accounting as profession has shifted from just an ordinary financial profession to numerous environmental researches and an accountability when it comes to the contribution of social environmental factors. Therefore thin paper is trying to find out as to whether, Thesis: corporate social responsibility (CSR) reports provide shareholders and stakeholders with useful information on corporate social and environmental performance. Having been clarified into different segments, financial managerial and costing that are familiar to most people, must relate to the issues of finance in one way or the other. However, when it comes to corporate social responsibility, accounting would only concentrate on corporate social repotting that is considered vital to both the organization and any other stakeholders in different ways as explained in this paper (Sims, 2003). Shows accountability of democracy Corporate social reporting gives adequate clarification about the commitment to stakeholders concerning accountability, democracy and transparency. The CSR constitutes a proper clarification of social and environmental concern on factors that are never economic viable to the society as a whole as explained by divergent stakeholders theory. Besides, it gives a composer of distinct and varied number of environmental reports that clarifies about annual returns of an organization and this must be based on organizational profitability in relation to the size of the economy or regulatory environmental. Through engaging the necessary stakeholders, corporate social reporting provides an insight social environmental reports that can be used to indicate predicament of sustainability and a preliminary to future planning while investing under the same environmental circumstance. CRS has also been known to have different levels and through this, it can easily determining organizational performance pertaining to a particular social environment and making adjustment where necessary (McNeil &Malena, 2010). Corporate social reporting combined with group of information resource, has been considered the most accurate and standardized means of environmental reporting about an organization. This would therefore, helps in building of trust of all stakeholders that the report produced is right and can be used as a tool in the decision making process on what amount should be added as an additional input to the organization. Corporate social responsibility and corporate social reporting have been known to offer the best environmental accounting principle that clarifies about the full costing while eliminating social externalities in order to get the right cost. Therefore, it helps in identifying the social cost which are very necessary during the organizational decision making process where the ideas of all the stakeholders must be consulted (McNeil &Malena, 2010). CSR motivates responsibility According to the political economic theory of social responsibility of accounting, corporate social responsibility and corporate social reporting is very essential to an organization since it makes it simpler in determining the course of action in a company. Besides, corporate social responsibility is not enforceable by the law when it is implemented in any organization and it only requires to be delivered through good will besides the stakeholders’ partisans in line with the organizational culture. This helps building of the spirit of unity towards the organizational success. With respect to traditional organization theory, an organization may be defined as an institution that creates links to its environment, in this case the shareholders. Then, corporate social responsibility can be used as one of the ways that motivates stakeholders of an organization by offering rewards such as bonuses when an organization has made good returns (Gossling, 2011). CSR enhances organizational unity with the society According to the theory of corporate social responsibility, every organization always works hard to gain reputation within its community of operation. As such, they would do what is perceived to be best to all members of the society including, clients or communities. For instance, most organizations offer employment opportunities for a period of time or internship to fresh graduates and giving them enough skills so that that they would also help in the development of the society while at same time giving returns to the organization. In addition to this, clients are also given priority when it comes to corporate social responsibility. Through corporate social reports, an organization can be able to determine its customer base and predict the future of its operation. As such, it may engage into rewarding strategies that would help in sustaining of the customers purchase power. Moreover, CSR can also be deployed to the community by providing extramural services such as medical facility as the organization continues in building up its reputation (Idowu, 2009). Indicates the level of financial performance The expectancy theory of performance has given a clear definition on how financial performances and sustainability are determined by corporate social report of an organization which, are essential during corporate decision making processes. Through this theory, the financial performance is divided into two categories such as empirical corporate social repot. This can only be achieved either qualitatively or quantitatively. From the above two mentioned reports, the stakeholders are capable of determining the level of competitiveness within the business environment. Besides, it also helps in analyzing the benefits from the collaboration such as cross-sectional examination and this offers valuable insights about the benefits of corporate social responsibility. In addition, while trying to investigate about proactive and reactive environmental social companies, corporate social reports helps in restoration of an organizational image based on communication, culture and the modes of operation to the public. While at the same time it facilitates to the improvement of employees motivation since most of the employees prefer better working conditions that draw them into activities outside their normal responsibilities which is always to the organizational befit (Werther & Chandler, 2011). CSR helps stakeholders in planning for sustainable cost Every organization values sustainable cost saving as it always lead to increased revenue within an organization. Several researches have come to a conclusion that an organization can gain a lot efficiently and this can only be achieved by proper implementation strategy involving specific shareholders such the regulators whose acceptance is purely based on improved capital available from such kind of a report. Corporate social reports have also been known to offer the relevant necessity to the improvement of capital accessibility because of the availability of investors’ records sensitivity in regard to the trading environment. Besides, the practice of corporate social reporting enhances organizational promotion of image through the direct achievements of market devolution. This process also facilitates highest reduction in risk management that is often attributed by price escalations which, often lead to customers boycott in purchasing some of the product through an assumption that the prices would reduce in future. Other than the cost benefits Illustrated above, corporate social reports can also lead into non- monetary benefits within the business environments and these would still be simplified as benefit to the stakeholders. For instance, customers’ attraction would depend on recruitment and employees motivation that is implicit on how the customers’ shall be handled. This type of measurement is recorded as reputation indices or as fluctuation rates just to give a clear illustration since they are non monetary in value (Crowther & Capaldi, 2008). Corporate social report also helps in customers’ evaluation Each and every organization always looks for an alternative method in determining investment appraisal such as net present value (NPV). With respect to this, all cash flows utilized in the past and future are accumulated together to help determine the current value of an organizing. The CRS would therefore, help in identifying the sustainable factors that are necessary in enhancing relationship amongst the stakeholders aimed at identifying investment opportunities that are considered to more rewarding in the future. Despite the fact this method does not indicate the level of competitiveness; it is more accurate in handling individual problems that are typical in a particular current situation (Coombs & Holladay, 2012). From the theory of information discloser, an organization being socially responsible would mean that it is able to fit into the societal demands. To allow for such an existence would also for an application of the best possible model to assist in examining of the customers compliancy and the organizational relationship to the environment. In such a case, corporate social report is applicable since it gives chances that easily determine the relationship between the customers and the organizational environment. Moreover, through the social responsible investment, organizations can identify the cheapest means that would help attract investors who are considered successful investors according to how they value those organization operations within its environmental area of trade (Coombs & Holladay, 2012). Conclusion For an organization to enjoy the benefit of success within a specific environment of trade, then it mandatory that it must embrace corporate social responsibility whose ultimate deliverable is corporate social report. Moreover, there must be enough transparency that helps in ecological environment that is accountable to performance reports in a number of issues. In conclusion, corporate social report is an important element in providing information about organizational environmental governance to both the stakeholder and shareholders of given firm. References: Sims, R. (2003). Ethics and corporate social responsibility: why giants fall. Westport, Conn. [u.a.] Praeger. McNeil, M & Malena, C. (2010). Demanding good governance: lessons from social accountability initiatives in Africa. Washington, DC: World Bank, cop. Gossling, T. (2011). Corporate Social Responsibility and Business Performance: Theories and Evidence about Organizational Responsibility. Cheltenham: Edward Elgar Pub. Idowu, S. (2009). Professionals Perspectives of Corporate Social Responsibility. Heidelberg: Springer. Werther, W & Chandler, D. (2011). Strategic corporate social responsibility: stakeholders in a global environment. Los Angeles: SAGE. Crowther, D. & Capaldi, N. (2008). The Ashgate research companion to corporate social responsibility. Aldershot, England; Burlington, VT: Ashgate, cop. Coombs, T & Holladay, S. (2012). Managing corporate social responsibility: a communication approach. Chichester: Wiley-Blackwell. Read More