CSR
Introduction
As the traditional theories indicate that the purpose of accounting is to inform the self-interested decision-taker to generate their wealth maximally and thereby guarantee the efficiency of the capital markets (Gray, Owens and Adams, 1996). However, nowadays, as the revolution of new technology, and high levels of accessibility of worldwide information for everyone, any tiny element from social and environmental aspects can have a major impact on the profitability of the company. Thereby this led to recognition of different types of capital including financial, human, natural and social capital, which has the effect on human living space. Within this sense, social and environment reporting can be described as process of communicating the social and environmental effects of organizations economic activities to particular interest groups within society at large (Gray, Owens and Adams, 1996).
History of CSR
Social and environmental reporting has grown substantially since the early 1965s. According to study of CSR Sustainability Framework (CSR Quest, 2004), the history of the CSR can be consist of 3 phases which can be illustrated by such a diagram below with issues developed in each phase
Diagram 1.1
(Source: CSR Quest, 2004)
As a result, nowadays, the findings pointed out by Peter Utting (2005) revealed that more than 80% of the fortune-500 companies had CSR reporting on their agenda as prior item. (For the further details please look at the appendix)
http://www.csrquest.net/uploadfiles/1D.pdf (appendix) (History of CSR) http://vuir.vu.edu.au/15372/1/O%27Donovan_2000compressed.pdf (Appendix) (History of CSR)
Theoretical Explanation of CSR as Main Reason for Corporations with Integration of ABF
There are some theoretical reasons for companies to present the contribution to their potential stakeholders who are interested in their performance.
Stakeholder theory
Stakeholder theory involves the structure of business ethics and organizational
As the traditional theories indicate that the purpose of accounting is to inform the self-interested decision-taker to generate their wealth maximally and thereby guarantee the efficiency of the capital markets (Gray, Owens and Adams, 1996). However, nowadays, as the revolution of new technology, and high levels of accessibility of worldwide information for everyone, any tiny element from social and environmental aspects can have a major impact on the profitability of the company. Thereby this led to recognition of different types of capital including financial, human, natural and social capital, which has the effect on human living space. Within this sense, social and environment reporting can be described as process of communicating the social and environmental effects of organizations economic activities to particular interest groups within society at large (Gray, Owens and Adams, 1996).
History of CSR
Social and environmental reporting has grown substantially since the early 1965s. According to study of CSR Sustainability Framework (CSR Quest, 2004), the history of the CSR can be consist of 3 phases which can be illustrated by such a diagram below with issues developed in each phase
Diagram 1.1
(Source: CSR Quest, 2004)
As a result, nowadays, the findings pointed out by Peter Utting (2005) revealed that more than 80% of the fortune-500 companies had CSR reporting on their agenda as prior item. (For the further details please look at the appendix)
http://www.csrquest.net/uploadfiles/1D.pdf (appendix) (History of CSR) http://vuir.vu.edu.au/15372/1/O%27Donovan_2000compressed.pdf (Appendix) (History of CSR)
Theoretical Explanation of CSR as Main Reason for Corporations with Integration of ABF
There are some theoretical reasons for companies to present the contribution to their potential stakeholders who are interested in their performance.
Stakeholder theory
Stakeholder theory involves the structure of business ethics and organizational