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ACC3005 The Accounting Research Project

Assessment 3 Instructions: (Word limit: 2500 including 1000 words from research proposal)

This assessment 3 is the second phase of the research project identified in assessment 2. This project is an appraisal and evaluation of a contemporary accounting issue. In assessment 2 (A2), you have identified the research topic and have provided research objective and research framework. In assessment A3, you need to conduct actual research on the selected topic and design research methodology, provide commentary on relevant accounting theories, and review literature.
Content and Structure:
In this assessment A3, you need to,
a) Provide literature review with critical analysis of contemporary research based on your topic.
b) Design appropriate methodology for qualitative research aligned with research objective and research question

Solution:

Progress Report on Project

“Social Accounting Issues”

Introduction

Social accounting is a managerial approach using which it is evaluated how efficient an entity is executing its defined kind of operational and non-operational activity with long-term viability and without leaving an adverse effect on surrounding society or environment (Abbas, 2018). The innovative study is about the social accounting issues which are being faced among small, middle, and large-scale companies of the world. Social accounting issues refer to the situation in which the management of an organization does not care about the development and secureness of either surrounding society or environment while continuing its operational activity and this eventually reduces its sustainability. With the help of the innovative assignment, the perspective of different sources of information towards social accounting issues has been critically analyzed following qualitative research methodology and this has been eventually used to conclude the work.

The first and foremost aim of the research assignment is to understand the real cause and impact of social accounting issues within an organizational context along with having an insight into the significance of social accounting in getting sustainable development. The research objective for the study is as follows-

  • To get the meaning of social accounting (Corporate Social Accounting)?
  • To analyze the possible kind of social accounting issues available within the organizational industry along with their short-term and long-term impact
  • To evaluate the perspective of different journals and sources of information about the part of social accounting issues and CSR in getting sustainable development

The significant kind of research question for the study has been developed as follows-

  • What is social accounting or Corporate Social responsibility?
  • What are social accounting issues available within companies and what are their short-term and long-term impact?
  • What are the views of different journals or sources of information about the part of social accounting issues and CSR  in the context of sustainable development?

Literature Review

Briefing about the Concept of Social Accounting and respective Issues

Social accounting is also referring to corporate social responsibility and it is an advanced organizational approach in which the management of a company strategically continues its operational activity along with making a significant contribution in the development of surroundings societies and environment. According to Brogi & Lagasio (2019), the concept of social accounting or corporate social responsibility (CSR) plays an integral part for the business head of an organization in deciding how it might get a sustainable development in the perspective of its potential consumers and societies. On the other hand, it has been noticed that there are a large number of companies that are tactfully concentrating on the development of their product or services without making any significant contribution to the development of societies and the environment and this situation is referred to as social accounting issues.

It means that social accounting issues refer to the irrational behaviors of the business heads of corporates towards the development of their brands or product or service endangering societal benefit and surrounding environment (Ghouma, et al., 2018). For example, in now day, there are many manufacturing companies that are producing defined kinds of chemical-oriented products for exploiting the existing and upcoming market needs but these are leaving a substantial impact on the pollution level of the environment and living standards of societies. In short, social accounting issues are the collection of the irrational activities of corporates in which the benefit of surrounding society and protection of natural resources or environment are not considered while exploiting any targeted kind of market or opportunity.

Critical Analysis of Social Accounting Theories

As per the social accounting theory of J. R. Hicks, the management of an organization is required to identify and evaluate the short-term and long-term impact of its defined kind of operational activities on the surrounding environment so that corrective action might be taken to get sustainable growth (Retolaza & San-Jose, 2021). According to Tsalis & Nikolaou (2017), now a day, the administration of corporates is so much indulged in making their product attractive or competitive that they hardly invest their money for the benefit of surrounding society without any self-interest. It means that there are a large number of companies that are investing for the protection of environmental resources like rivers and soil etc but they are just doing to getting a competitive attraction from their potential stakeholders so that they might get their sales increased substantially. On the contrary, Rodrigues, et al. (2021) states that the business head of a firm is required to understand the short-term and long-term needs of society during defining its operational strategies so that defined organizational objectives might be achieved by leaving a positive impact on them. As per shareholder theory of social accounting or CSR, the management of a company is required to make its product and strategies in such a way that the need of targeted customers might be fulfilled without harming their lives and surrounding environment.

For example, in the current scenario, there are many companies that are tactfully making competitive kinds of electronic and lifestyle-related items for fulfilling the respective needs of their targeted customers. On the other hand, the material from which lifestyle or chemical-based product has been made has been found harmful for the skin of human beings and the purity level of the environment and this is eventually not only affecting the lives of the customers but also reducing the purity of the environment. The outcome of the irrational organizational approaches is that corporate has been successful in augmenting their financial and non-financial performance but they are getting failed in incorporating a sustainable business. Hence, it has been important for global companies and the community to discuss the importance of social accounting issues as those are not only affecting the lives of the present generation but are affecting the viability of the life of future generations as well.

Critical Evaluation of the Impact of Social Accounting Issues on Organizational Development

According to Yanovsky (2017), an effective kind of social accounting approach or CSR is required for the management of an organization to get a positive kind of brand image within the perspective of its potential customers so that competitive growth might be achieved effectively. If the management of an organization will not focus on the importance of social accounting activities, then no doubt, it will be successful in decreasing its operational cost but it will not be successful in getting sustainable business. For example, if the business head of a firm will not care about the quality of air and health of surrounding societies while developing its product and strategies, then no doubt it will be successful in increasing its profit margin by selling its products. On the other hand, one day, the potential customers of the firm having social accounting issues will leave to buy its products by seeing its adverse effect and this will eventually reduce its sale as well as sustainability.

On the contrary, Abbas (2018) states that if the management of an organization follows an effective kind of social accounting-related concept during its product’s manufacturing and marketing, then it becomes successful in getting a positive brand image within the perspective of its customers. It means that if the business head of a firm will not care about the benefit of its surrounding society and environment, then it will not be successful in incorporating a customer-centric brand image and this will eventually reduce its sustainability drastically. In short, social accounting issues have been increased substantially within a different organization but they are required to be solved strategically as if surroundings society will not be safe, then how they will be successful in getting their business grown.

Research Gap

The research gap of the study is the absence of real cause of the rising cases of social accounting issues in the global corporate world and in this work, only limited firms like A2 Milk Company Limited have been analysed to have an insight about their CSR issues. Apart from it, the substantial impact of social accounting issues on the financial performance of a firm like A2 Milk Company has not analysed in quantitative format which is an important research gap in terms of getting its statistical insight.

Research Methodology

Research Strategy

A qualitative kind of research strategy has been selected for understanding the impact of social accounting issues on the sustainability of firms and the living standard of their potential customers. The rationale behind the selection of the qualitative kind of research strategy for the study is that it has helped in collecting and analyzing social accounting issues related qualitative data of an organization like A2 Milk Company Limited effectively.

Research Philosophy

For having an in-depth understanding of the importance of social accounting within an organizational context, the positivism research philosophy has been opted because it has assisted in understanding its impact on the brand image of firms in experimental format by linking with respective social life.

Design of Research

Research design is an analytical outline using which defined kind of study is tactfully executed by collecting and analyzing respective information so that its objective might be achieved (Oliva, 2019). For understanding of the impact of possible kinds of social accounting issues on organizational performance of A2 Milk Company limited, the descriptive kind of research design has opted over correlational and experimental research design as it has supported in identifying all potential factors which arouses the situation of social accounting issues.

Research Approach

The inductive kind of research approach has been opted over deductive research approach as the earlier one has supported in developing a theoretical framework regarding understanding the pros and cons of social accounting issues in the context of organizational development of A2 Milk Company Limited.

Data Collection

The relevant kind of data related to the understanding and importance of social accounting issues and corporate social responsibilities, the peer-reviewed journals, books, and websites have been referred and relevant qualitative information has been collected to meet research objective.

Data Analysis

Qualitative kind of data analysis technique has been used for having an insight about the impact of social accounting issues and CSR on the sustainability of firms like A2 Milk Company Limited. The rationale behind selection of qualitative data analysis technique for the study is that the secondary data which has been collected from a secondary source about the social accounting issues in the context of firms like A2 Milk Company Limited are qualitative in nature (Munch, 2017).

Conclusion

It has been concluded that social accounting is an essential tool for the management of an organization to keep its brand image and operational activities positive in the perspective of its potential customers so that sustainable growth might be achieved effectively.

References

Abbas, J., 2018. Impact of total quality management on corporate green performance through the mediating role of corporate social responsibility. Journal of Cleaner Production, 24(2), pp. 118-458; DOI : 10.1016/j.jclepro.2019.118458.

Brogi, M. & Lagasio, V., 2019. Environmental, social, and governance and company profitability: Are financial intermediaries different?. Corporate Social Responsibility and Environmental Management, 12(1), pp. 576-587; DOI : 10.1002/csr.1704.

Ghouma, H., Ben-Nasr, H. & Yan, R., 2018. Corporate governance and cost of debt financing: Empirical evidence from Canada. The Quarterly Review of Economics and Finance, 12(1), pp. 133-148; DOI : 10.1016/j.qref.2017.06.004.

Munch, E., 2017. A user’s guide to topological data analysis. Journal of Learning Analytics, 4(2), pp. 47-61; DOI : 10.18608/jla.2017.42.6.

Oliva, R., 2019. Intervention as a research strategy. Journal of Operations Management, 65(7), pp. 710-724; DOI : 10.1002/joom.1065.

Retolaza, J. L. & San-Jose, L., 2021. Understanding social accounting based on evidence. Sage Open, 12(1), pp. 22-29; DOI : 10.1177/21582440211003865.

Rodrigues, M. et al., 2021. Dissemination of social accounting information: A bibliometric review. Economies, 12(1), pp. 22-29; DOI : 10.3390/economies9010041.

Tsalis, T. A. & Nikolaou, I. E., 2017. Assessing the effects of climate change regulations on the business community: a system dynamic approach. Business Strategy and the Environment, 12(1), pp. 826-843; DOI : 10.1002/bse.1953.

Yanovsky, M., 2017. Social accounting systems. Sydney: Social accounting systems; ISBN : 9780471245926.

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