Social Responsibility Accounting Practice and Disclosure in The Annual Report

Abstract

Every business is an open system that has specific interaction with society. In fact, most companies operate in a social, economic, technological, and political change that brings both opportunities and threats. However, there is inter-dependence between business, government, and society in the need of a stable environment with an educated workforce. Now, the corporate’s objective is not only creating profit, but also practices that have impact on society and environment. Corporates can implement the integration among economic, social and environmental interests through Social Responsibility Accounting (SRA) practices. SRA disclosure in annual report is a potential tool to accommodate all stakeholders’ interests, especially in social and environmental area. SRA disclosure is becoming crucial thing and give impact on corporate life in the future. Hopefully, SRA disclosure in annual report can give long term benefits for the corporate.