Social Report Model framed within the framework of Sustainable Accounting

Authors

  • Claudio Vásquez-Millalén
  • Miseldra Gil-Marín
  • Sandra Vera-Ruiz

Abstract

Society currently seeks to be informed of the impacts and consequences of the activities carried out by companies. This is achieved through the incorporation of Social Accounting, a subdivision of Sustainable Accounting that looks beyond the economic relations between organizations and society. The objective of this research is to propose a model of social reporting, which presents and discloses the charges and contributions made by the company to its workers to make known the impacts and consequences of the activities developed by organizations, both public and private. For this purpose, the items related to workers' welfare are recognized. The present research is qualitative at an exploratory level, with a phenomenological approach. It proposes a new Social Profit and Loss Statement so that internal and external users of financial information can recognize the organization's contribution to society's welfare. The economic facts that record the charges and contributions of the workers made by nine companies of the metal-mechanic metallurgical industry in Chile that submit information to the Financial Market Commission (CMF) were taken. The exclusion criteria were companies that did not show information related to charges and contributions made with social benefits in their Annual reports. In addition, in-depth interviews were conducted with accountants and auditors responsible for generating financial and non-financial information. With this information and based on the structure of a Statement of Income according to its function, proposed by the International Financial Reporting Standards (IFRS), a Statement of Social Income is prepared with its disclosing notes, in which the detail of each of the charges and contributions made in the period is evidenced.

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Published

2023-02-25