Social Compliance Accounting: Managing Legitimacy in Global by Muhammad Azizul Islam

By Muhammad Azizul Islam

This publication covers key discussions concerning significant US and ecu multinational businesses (MNCs) that resource items from providers in constructing international locations. because of the move of creation from constructed to constructing countries, there's an pressing have to determine social compliance as a brand new type of company Social accountability (CSR) and a method through which MNCs can meet anticipated social criteria. The instances defined are the world over correct and will be obvious to mirror or characterize the habit of many MNCs and their providers in constructing countries. The dialogue deals crucial insights into how various degrees of social compliance hazard and strain (including broader stakeholder matters) flow managers to undertake or embody specific social compliance accounting, reporting and auditing techniques. The e-book can help readers to appreciate the key issues, demanding situations and dilemmas confronted through administration within the offer chains of MNCs, and proposes measures that may be taken to solve these dilemmas. most significantly, it develops a scientific approach to assessing the social compliance functionality of providers to MNCs. This comprises hugely precise bills of the social compliance functionality of providers in the garments (in a constructing state) that offer items to the large US and eu markets. The publication deals a important consultant, not just for company managers but in addition for practitioners, researchers, lecturers, and undergraduate and postgraduate company students.

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Additional info for Social Compliance Accounting: Managing Legitimacy in Global Supply Chains

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It is posited that once legitimacy is threatened, an organisation will embark on a process of legitimation targeted primarily at those groups who it perceives to be its ‘conferring publics’ (O’Donovan 1999, 2002). For an organisation to manage legitimacy effectively, it must consider the following factors (O’Donovan 2002, p. 349): • identify its conferring publics; • establish what are its conferring publics’ social and environmental values and perceptions of the corporation (public pressure variables); • decide on the purpose or aim of any potential organisational response to legitimacy threats; and, • decide what tactics and disclosure options are available and suitable for managing legitimacy, related to the purpose of the organisational response.

Hence, social reporting is deemed to represent a term that relates to the voluntary provision of information about the performance of an organisation in relation to the broader areas and contexts of corporate social responsibility practices. 4 A Brief Overview of Prior Social Accounting Research While social accounting has commanded growing attention and acceptance, its development can be seen as a result of stakeholder pressures as well as academic advocacy. Arguably, few early (during the 1970s and 1980s) advocates of social accounting research (see for example Tinker et al.

Social compliance accounting refers to measuring, understanding and reporting an organisation’s social and ethical compliance. In other words, social compliance accounting is one type of social accounting dealing with measurement, recording and communication of conformance to the rules of social accountability or certain social standards by the organisation. This not only includes the organisation’s own policies and practices but also those within its supply and distribution chains. It is a continuing process in which the involved parties keep on looking for better ways to protect the health, safety, and fundamental rights of their employees, and to protect and enhance the community and environment in which they operate.

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