Social and Environmental Accounting - Essay Example

Social and Environmental Accounting By Student’s Name Course + Course Name Professor’s Name University Name City, State Date Social and Environmental Accounting “...any form of social and environmental accounting (and much financial accounting) will produce outputs which are contestable and open to debate. The utility of such accounting is not in its representation of ‘infallible truth’ but in its creation of a range of environmental and social visibilities and exposure of values and priorities that become inputs to wider democratic processes of discourse and decision making...”(Boyce, 2000, p. 53). Introduction There has been a wide range of recognition for the need for new accounting which is capable of not only fostering democracy but also of facilitating more forms of social organization which are more participatory. I therefore agree with the above quotes that indeed, any particular form of social, environmental and social accounting will be able to produce outputs that are not only contestable but also open to debate as well. Indeed, it can also be genuinely asserted that the utility of such forms of accounting lies not in the representation of the infallible truth but rather in the creation or establishment of numerous social and environmental visibilities and the exposure of priorities and values which become inputs to broader democratic processes of decision making and discourse. Accounting has therefore become one of the societal practices in which both group and individual subjectivities are shaped and an approach through which power is exercised. Accounting, being an authoritative discourse, is therefore able to inscribe its values on the world because of its influence on social and economic exchanges and conflict mediation as well. Based on the above quote, there is dire need to move away from the society’s simplistic view in both technology management and environmental strategies which are not genuine at all. It can be genuinely be ascertained that there has been widespread recognition both outside and inside the accounting discipline calling for new accountings which are capable of facilitating more participatory forms of accountability and decision making (Boyce, 2000). Boyce’s Opinion I wholly agree with the above opinion by Boyce because indeed, social accounting tools have over the years been proposed as being a means through which democratic interaction can be promoted and the redesigning of the accounting methods done so as to facilitate enhanced conversations and establish both environmental and social visibilities. Despite the fact that various accounting options have always been well intentioned, the results that emanate from the practice have been very disappointing because both environmental and social accounting have not only been insufficiently been politicized but also under-theorized thus hampering the accounting practice. As a result, it is quite difficult, undesirable and quite impossible to keep politics out of sustainability or accounting. In addition to the above, it can be genuinely ascertained that accounting is now being viewed as being a vehicle that is having the potential of fostering a democratic interaction instead of a set of techniques aimed at not only maximizing the wealth of shareholders but also in constructing others that are governable (Boyce, et al, 2013). The Need of enhancing Dialogism in social and Environmental accounting I wholly agree with the above assertion that any kind of social and environmental accounting and as much of financial accounting will yield outputs which will not only be contested but also become subject to debate as well. This is because the project of social accounting has been deeply rooted in the norms of both neo-pluralism and democracy. As a result, numerous methods have been presented as means of promoting accountability and democratic dialogue. In the most recent times, emphasis has been placed on efforts which are aimed at establishing new social and environmental visibilities through various mechanisms like full cost accounting, shadow/silent accounts and “triple bottom line reporting”. Most forms of social accounting will most definitely elicit outputs that are contestable and subject to debate because money is still being regarded as a measuring road which is convenient and therefore models of accounting are sometimes sold by consultants as the objective tools. According to research which has been conducted, it has been ascertained that indeed, some of the stakeholders and academics have defended the modernist approaches based on the fact that since economic rationalism has been known to dominate both the policy making and corporate decision making contexts, this is the only sure way of ensuring that environmental issues are given consideration. There is therefore dire need of the creation of an environmental and social accounting that takes the engagement of stakeholders seriously and which recognizes any conflicts among the stakeholders in order to address power dynamics explicitly (Sangharakshita, 2007). Various scholars and academics have called for approaches which calls for a critical approach towards the management of both environmental and technology through research which needs a deeper commitment and longer time horizons in order to both identify and resolve substantive problems. Boyce (2000) addresses the accounting issue as being a social technology and form of social power capable of serving a constraining or enabling function. Boyce therefore suggests that accounting indeed has a major role in the development of accountability in a democracy which is participatory. This is because accounting is capable of promoting transparent processes of decision making through the establishment of social and environmental visibilities and also through exposing any standpoints of the parties who are interested. As a result, new accounting methods should never be aimed at the production of incontrovertible accounts and the societal worth should also never be judged based on the expert production of correct answers but rather on the broadening and facilitation of debate. There is therefore great need for accountants to initiate accounting systems which are capable of preventing any form of premature closure and which are capable of infusing both dialogue and debate. Accountants should therefore aim at facilitating genuine and informed participation of citizens in the process of decision making in order to make power relations become more transparent. In addition to that, they will also greatly help in making sure that all transactions relating to the accounting profession become more transparent. Even in some other hard areas of science, calls for democratization have become even more apparent and debates surrounding this sustainability have proved to be pivotal. Accounting and the Creation of New visibilities Accounting is capable of not only creating new visibilities but it is also capable of facilitating debate and discussion among the parties who are interested. This is due to the fact that it promotes the development of dialogic instead of monologic reasoning conceptions thus facilitating the layers of talk which are needed in a “multi-perspective environment”. This is a clear pointer that indeed, any form of environmental and social accounting will be able to produce outputs that will be open to debate and contestable in various platforms. According to research conducted, it is asserted that business entities are the main polluters which are actively involved in defining concepts of sustainability for themselves in a manner which gives them a weak definition of “sustainable development ” in the field of accounting (Lehman, & Saravanamuthu, 2009). The debate has been entered regarding the research agenda in the social and environmental area in which it is argued that the results have to yield changes for it to be effective. It is further argued that indeed, there is need for more focus on the “critical research agenda” aimed at making the creation of numerous social and environmental visibilities to become apparent. It can be genuine to further assert that one of the greatest challenges all forms of accounting is the consideration of both modes of environmental and technological management that will lead or result towards a future that is capable of promoting accounting policies and practices. It will be prudent to pinpoint out the fact that globalization has significantly contributed to the degradation of accounting practices and an increase in equality and inequity. As a result, it is vital to note that the greater challenges lies in pointing towards the new organizational modes using the relevant technology that is capable of enhancing human life through excellent accounting practices. It can be truly be argued that in a consideration like this one, the visions of traditional modernists in which both the future and the present accounting practices is the past’s extension are normally given consideration. Based on the quotes, it can be genuinely asserted that the past systems of doing business are significantly responsible for most of the environmental and social problems that are currently being seen in the accounting profession. As a result, new ways of moving forward should actually be invented as soon as possible in order to minimize the effects of such problems in the field of accounting (Bebbington, et al, 2014). Until recently, most of the organizational aspects of both the society and the economy as a whole coupled with the individual firms were highly dependent on the trends and concept that are inherent in accounting modernism. Indeed, it can be easily be ascertained that modernism accounting comprises of a continuous process of both reshaping and redefining what occurred before in pursuit of the general accounting principles which were thought to be desirable for the good of the universal human accounting population. The accounting principles and its associated technologies should therefore introduced in firms and workers should not be treated as being simple “neoclassical factors of production” that should be managed through rigid hierarchies. The rise of Modernism In accounting It can be ascertained that Modernism has led to an increase in materialism, an increase in consumption, notions of immediacy disposability and temporariness and a mass consciousness in the accounting profession. It is true to further assert that dualist thinking in accounting has arose due to modernism and it due to it that a tendency of separating nature and society through seeing them as being opposite and separate has occurred (Gabriel, 2014). Recognition of accounting as a discipline Due to the fact that there has been widespread recognition in the accounting discipline, there is great need of enhancing accountings which are capable of embracing the different forms of participatory accountability and decision making. However, it should be noted by all and sundry that indeed, more of this linked to the dissatisfaction related to the tools of “technocratic decision making” which are well depicted in numerous debates that surround the application of the cost benefit analysis or CBA. In the recent times, numerous social accounting mechanisms have been proposed as being the channel for the promotion of democratic dialogue. The Sustainability Assessment Model (SAM) was therefore regarded as being a channel in which individuals who had competing views about the effects of a particular project could be able to easily communicate their interests and concerns to each other. It was therefore strongly believed that dialogue between different parties who had an interest in a particular project became alienating since each person was unable to see the other person’s viewpoint. SAM therefore provided a good connection point between the numerous parties (Marinova, et al, 2008). Conclusion The reasons attributed above and yet many others are a clear prove that indeed, any form of environmental, social and even financial accounting has great influence in the accounting field because they are capable of producing outputs which are not only open towards debate, but which are also contestable to various fields, departments and arguments throughout the world. However, it is important to realize the fact that the utility of such accounting aspects cannot be termed to be a genuine representation or depiction of the infallible truth but rather, it is prudent to note that it is actually just a creation of numerous social and environmental visibilities. In addition to that, it should be noted by all and sundry that the utility of such accounting is a good exposure of the priorities and values which have become tangible inputs of wider or broader processes of both decision making and democratic processes. It will also be important to note that despite the fact that issues of sustainability have pointed out the need for democratizing the accounting technologies, the practical developments which have so far been initiated remain less encouraging. More has to be done to ensure that the accounting profession remains beneficial to the human population. Works Cited Bebbington, J. et al, 2014, Sustainability Accounting and Accountability, Routledge, New York. Boyce, C, et al, 2013, Victory Celebrity Culture and Tennyson’s Circle, Palgrave New York. Gabriel, S, 2014, Financial Accounting, Tata McGraw-Hill Education, New York. Lehman, C & Saravanamuthu, K, 2009, Extending Schumacher’s Concept of Total Accounting and Accountability into the 21st Century, Emerald Group Publishing, New York. Marinova, D, et al, 2008, The International Handbook on Environmental Technology Management, Edward Elgar Publishing, New York. Sangharakshita, S, 2007, The Buddha’s Noble Eightfold Path, Windhorse Publications, New York. Read More