SOCIAL ACCOUNTING OR CORPORATE SOCIAL RESPONSIBILITY Literature review

SOCIAL ACCOUNTING OR CORPORATE SOCIAL RESPONSIBILITY - Literature review Example Conclusion 12 Reference 14 Introduction Accountants have made an important contribution in the debate of corporate social responsibility also known as social accounting or CSR. The major element that the accountants have contributed is the ability to provide mechanism for the holding corporations are accountable for their work. Ryan (2002) has described the Corporate Social Responsibility or CSR as motherhood issue, the hot topic of the noughties by Blyth (2005) and finally Mees and Bonham (2004) have defined CRS as the talk of the town. There are various definitions provided by the authors and which are simple and some complex and a range of ideas and terms are used interchangeably which includes the corporate sustainability, citizenship, social investment and also corporate governance (Thomas, 2006, p. 3). CRS is considered as a strategy to create, sustains a positive reputation and brand image for the company. Corporate Social responsibility has become an important part in the success of the corporate. Studies on the ef fects of CSR on the organisation have shown a diverse outcome. Many studies conducted on the effect of CSR have showed a negative result or relationship between the CSR activities and the performance of the organisation. But there are authors who have proved in showing a positive relationship between the CSR and the performance of the organisation. ... Much of the literature tends to promote the business for its CSR claiming the ethics are good for business. The instrumental approach states that the CSR needs to be reconstructed in an instrumental manner in order to be meaningful to the managers in their day to day activities to pursue the organisational goals and objectives. According to Beesley & Evans the government needs to promote the CSR in terms of taxation and also regulation in order to ensure profitability for the corporation and pursue CSR. But the normative approach states that the instrumental approach tends to diminish the ethical principles of the Corporate Social Responsibility. The normative and the instrumental approaches believes in different notion as to what would be the bottom line of any business should be and what. As per Reinhardt, the normative and also the instrumental arguments are mostly used simultaneously. There have been noticed an interplay in between the two approaches like with normative approach an understanding of the ethical business is acquired also by informing the instrumental approach. The instrumental approach does not act ethically unless and until it is profitable for the firm to do so and whereas the normative approach applies a more consistent ethical performance. According to research, driving forces for the organisations to adopt the CSR practises is catalysed in different events (Friedman & Miles, 2006, p.31). Influence on the practise of Corporate Social Responsibility tends to interact or overlap in many different and complex ways such as when the investment firms spends a huge amount of dollar in order to educate the potential financial consumers to