Skip to main content

SOCIAL RESPONSIBILITY ACCOUNTING AND ITS EFFECT ON THE HOST COMMUNITIES A CRITICAL REVIEW OF SELECTED OIL COMPANIES IN PH






ATTENTION:
BEFORE YOU READ THE PROJECT WORK, PLEASE READ THE INFORMATION BELOW. THANK YOU!

TO GET THE FULL PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953, 08168759420

TO GET MORE PROJECT TOPICS IN YOUR DEPARTMENT, PLEASE VISIT:





SOCIAL RESPONSIBILITY ACCOUNTING AND ITS EFFECT ON THE HOST COMMUNITIES A CRITICAL REVIEW OF SELECTED OIL COMPANIES IN PH




CHAPTER ONE
1.1   OVERVIEW OF THE STUDY
Social responsibility accounting is seen as the branch of accounting that considers the social effects of business decision as well as their economic effect. Bagley (1995:20). Similarly from the Wiklpedia (Pg 1), it is the process of communicating the social effects of organization economic actions to particular interest groups within society and to society at large.
The issue of social responsibility accounting is not stated in the companies and allied matters act as well as the Nigerian Accounting Board (NASB).Since Social Responsibility is viewed as the disclosure of information of the effect that the operation of an entity has on their natural environment. This disclosure could be in the company’s published annual report or on a separate environment report.
Social Responsibility accounting has been unpopular, since is not given by 1977 Government green paper. As a result many people are unaware of the view that the problem inherited in social responsibility accounting such as unit of measurement, the extent of social accounting companies should bear. Social responsibility accounting widens the scope of conventional accounting by considering the social consequences of decision as well as their economic effect and requirement of new measurement for defining social objectives and assessing towards social goals.
Over the years, many well-published environment disasters that occurred in the late 1980s, led to the creation of awareness for the need for social responsibility accounting. Also, in recent years it has become the center of political debate and search for solution to social problems that has also led to its development. In the business world today, whether in the Government or private sector, nothing has ever been so challenging and goal achieving than adhering to the dictates of social responsibility which social change has imposed unto the society.
 D. Crowther defines social accounting as an approach to reporting a firm’s activities which stresses the need for the identification of socially relevant behaviours, the determination of those to whom the company is accountable, for its social performance and the development of appropriate measures and reporting techniques. It implies that social accounting has the potential to expose the tension between pursing economic profit and the pursuit of social and environment objectives; thereby showing the effect on those concerned.
Corporate performance is no longer seen simply as being equivalent to and consequently measurable in terms of profitability alone; by extension business are no longer responsible to their shareholders alone, rather they are also responsible to a variety of shareholder comprising of internal Customers, that is employees external customers, that is buyers of their products/services, suppliers, the government the local community and society as a whole. It implies that each of those stakeholders have one reason or the other to have their expectations of the business. In addition organization’s social responsible behaviors. In order to communicate to the stakeholders, in clear terms, the social and economic benefits created by the organization; social and economic costs thus incurred should be included and recorded in the organization annual report.
Despite the government and stakeholders efforts in evolving a policy on the environment and the need for taken responsibility, many of our oil companies are polluting and endangering our environment at will, not because they do not know what to do or the effect on the communities but because they want to maximize profit. The numerous demands for oil companies in our communities to participate in the social well-being and other wise of the society in which they operate. Delay and other absolute refusal of these companies in social and other involvement is increasingly leading to a period of demand for actions and ultimate enforcement by those concerned.
1.2   STATEMENT OF PROBLEM
Many well publicized environmental disasters; the kidnapping of people by militants has been experienced in recent years. Iieme (1990-1992) reported how the people of Umuechem village in Rivers State staged a protest match against their neglect by an oil firm operating in the community, which led to the violent destruction of lives and properties. Prior to Umueche disaster, according to him the Ogoni Community also in Rivers State had earlier, through their leaders of thought addressed a sober news conference in Lagos. Even recently we have heard how the people of Ogoni land asked Shell Petroleum to vacate their communities. Also how the Bonny land, blocked all the entrance for Nigeria L.N.G. The nations, Dec3 2008 also recorded how soldiers and indigenes were killed in Ogoni Community.
 Furthermore, the issue of Social Responsibility accounting may have resulted to a very many problems that have hindered the organization and the communities concerned from achieving their desired goals; to the communities in areas of contributing to their well-being and development of their communities. More importantly protecting their physical environment and providing essential social amenities. Also, the political elite that do not allow the grass social to benefit from it, and dissatisfaction of Youth that gives rises to militant activities and kidnapping.
However, the accounting implication observed is that some company have chosen to disclose misleading information about the effect of their activities on the government and community since there is no standard practice to follow.
To the end, it becomes necessary to provide an exposition to the existing effect of social responsibility accounting on host communities.
1.3   PURPOSE OF THE STUDY
The main purpose of this study is to investigate the effect of social responsibility accounting on the host communities.
Aside from the main purpose stated above, other specific objectives include;
1.     To examine the effect of total cost incurred by company on environment issue and its effect on infrastructures development (education)
2.     To examine the relationship between total expenditure by the company and infrastructures development (health)
3.     To examine whether the company that use social responsibility accounting perform better than those that do not use.
4.     To examine whether adequate disclosure, not misleading information are made about the social responsibility cost.
1.4   RESEARCH QUESTION
1.     Is there relationship between total cost incurred by company on environment issues and its effect on infrastructures development (education)?
2.     Is there relationship between total cost incurred by the company on social responsibility issues and infrastructures development (health)?
3.     Is there significance difference in the performance of company that makes use of social responsibility accounting and those that do not?
4.     Is there significance difference in disclosure on information by company that sue social responsibility accounting and those that do not.
1.5   RESEARCH HYPOTHESES
H01: There is no significance relationship between total cost incurred on environmental issues and infrastructures development (education)?
H02: There is no significance difference between total costs incurred in social responsibility issues and infrastructures development (health)
H03: There is no significance difference in the performance of Company that use social responsibility accounting and those that do not use.
H04: There is no significance difference between investment on community development and peace in the host communities.
1.6   SIGNIFICANCE OF THE STUDY
As already stated, the importance of this study cannot be over emphasized. The result of the study will be relevant in Macro Economic, Political planning, accounting development, Government and local communities as well.
Additionally, the study and its results are expected to sensitize managers and accountants of companies, so as to develop accountant principles and policies that are adequate for accounting for social responsibility cost, there by noticing its effect on those concerns.
Finally, findings and conclusion of this study will be useful to numerous stakeholders, employees, government, local communities and the society as a whole.
1.7   LIMITATION OF THE STUDY
A study of this magnitude is usually faced with some constraints. An obvious constraint is the availability of data and its collection. The heavy work schedule of the researcher in addition to the time demanded by this research exerted pressure on the available time, hereby making time constraints inevitable.
Also the attitude of the respondent will pose serious problem. Most of the respondent will conceal vital information on the ground that they are confidential.
1.8   DEFINITION OF TERMS
Social Responsibility Accounting: This is also known as environmental accounting, sustainability accounting. It is the branch of accounting that considers and communicates the social effects of business decisions as well as their economic effects to a particular interest group.
Environmental Cost: This consists of environmental measure and environmental losses.
Environmental Measures: Environmental measures are those are incurred on preventing, reducing or repairing damage to the environment and of conserving resources.
Environmental Losses: Environmental losses are cost which bring no benefit to the business, such as fines, penalties, compensation, and disposal loses relating to assets which have to be scrapped or abandoned because they damage environment.
Community:  This refers to a group of people with common origin, who live and share things together with common interest.
Organization: This refers to a group such as a club or business that is formed for specific objective.
Environmental Reporting: This is disclosure of information of the effect that the operations of an entity have on the natural environment.


1.9   ORGANIZATION OF THE STUDY
This study is organized into five chapters in attempt to present the information sequentially. Chapter one contains overview of the study, statement of the problem, purpose of the study, research questions, research hypothesis, significance of the study, definition of terms, scope and limitation of the study and finally organization of the study.
Chapter two deal with a review of related literature by previous researcher. Chapter three deal with research methodology which encompasses, research design, sampling procedure, operational measures of variables, data collection method and data analysis technique. While chapter four encompasses; data presentation and analysis. Finally Chapter five deal with discussion of the findings, conclusion and recommendations.





AFFILIATE LINKS:



Comments