Question

Should accounting include more than monetary units? Throughout your textbook additional insights into how companies are attempting to meet the challenge of measuring and reporting their contributions to society, as well as their financial results, to stockholders are referenced. Discuss why a company's stockholders might be interested in its environmental and social performance. Next, determine the critical pieces of information companies are providing and why this information is important from the perspective of the different stakeholders.

Answer 1

As far as my knowledge concerned, companies attempt to meet the challenge of measuring and reporting their contributions to the society through the concept of ' Corporate Social Responsiiblity' which highlights the issue of " companies and society are inturn benifited and there is a responsibility on the part of the company to allocate some portion of their profits by the way of recyclilng the wastes, reducing the pollution, education programmes etc., towards the development of the society- this is one of the areas which instances accounting includes more than monetary terms. Stock holders interest in company's environmental and social performance is that they are part of the society and as the owners of the company, it is their responsibility to observe the active participation of the company to the welfare of the society. companies would require to disclose all the related information whether monetary or not and even all the expenses and losses they came across during the process.different stake holders woukd veiw it from different point of veiw ie., as a growth factor, for investing into the company, for giving credit to the company etc.,