Entrepreneurship and Corporate Social Responsibilities

Question: Discuss about the Entrepreneurship and Corporate Social Responsibilities. Answer: Introduction: Over the period, it has become apparent that accounting as a practice not only treated as the practice of reporting but also more than that. In this context if the corporate social reporting or the CSR is taken into consideration, then it can be explicitly demonstrated as the combination of both voluntary as well as non voluntary disclosure made by an organization. Other than the economic importance, it has also carried larger value towards the society. According to Asare and Asmild (2012), the corporate social reporting has shed light on the below mentioned aspects: it explore the societal impact of any corporate activities performed by organizations irrespective of the field they operates; It measures the effectiveness of social as well as environmental activities carried by the organizations; Details of the corporate resources the organization has been dealing with. It can be said that the corporate giants are immensely powerful and thus they have the power to trump the interest of any economy. At the same time as it operates in a broaden area, the utilization of natural resources is getting higher on day by day (Campbell, 2012). Therefore, they have the primary responsibility to roll back the economy what they used. This primarily leads corporate organizations to involve in corporate social responsibility works. While talking about the cost and benefits of preparing corporate social report, the foremost problem lies with the presentation of information. Many times, it has observed that the corporations are publishing the CSR report. However, the goals of such reports are extremely narrowed down (Crisan and Borza, 2012). The report at time failed to display the objectives of the organization. Again, the mismanaged of data is another cost to the preparation of CSR report. While preparing the report, it has seen that the data were largely manipulated to represent the organization better than the real picture. On the other hand, setting unreachable goal in the report itself another cost of preparing CSR report. In opposite to the cost of preparing CSR report, if the benefits are considered here, then it can be said that it largely augmented the understanding of risk and opportunities for sustainability projects (Shin, 2012). Upon successful preparation of such report, organization can assess their capabilities at their own. At the same time, it also open the loopholes they have and where to work in future. Again, a successful preparation of CSR report indicates that the corporation is highly successful in the contemporary marketplace and consequently, the stakeholders gain additional confidence to engage themselves in the operation of the said organization (Crisan and Borza, 2012). It has seen that there are several accounting concepts that can be applied while discussing the CSR of any organization. First of all the concept of social accounting is the most appropriate one. Again, the environmental accounting is another aspect that can be applied while talking about CSR. When organizations like NGOs, charities, even government agencies are working with CSR, the role of social accounting came into existence (Crisan and Borza, 2012). It provides a framework of how they can monitor the CSR activities through community based monitoring. On the other hand, the environmental accounting largely dealt with firms that create such end product that has adverse effect on the economy. Through, environmental accounting, the governing bodies devised various policies and asked the organizations to abide by these policies so that the environment did not get affected. Though, CSR has gain importance over the last 10 to 15 years, there are instances when it become lesser important aspect. Many times, the corporate scandals prove that even if organizations are publishing CSR report, in practical, they are not following them. Again, it is also true that due to the biasness in the report it loses its importance at the initial stage (Crisan and Borza, 2012). On the other hand, firms with good corporate image exemplify the activities they are doing for societal benefits. Such activity leads small and medium size entrepreneurs to involve in CSR. Hence, it can be said that irrespective of the cost of preparing CSR report, it should be made as mandatory not voluntary for larger corporations. However, in case of small and medium size entrepreneur, it can be voluntary. However, whatever the nature of it, the objective of preparing CSR must have been fulfilled. References Asare, K. and Asmild, M. (2012). Banking efficiency analysis under corporate social responsibilities.IJBAAF, 4(2), p.146. Campbell, B. (2012). Corporate Social Responsibility and development in Africa: Redefining the roles and responsibilities of public and private actors in the mining sector.Resources Policy, 37(2), pp.138-143. Crisan, C. and Borza, A. (2012). Social Entrepreneurship and Corporate Social Responsibilities.IBR, 5(2). Shin, J. (2012). Vietnamese's recognition and expectation for Corporate Social Responsibilities (CSR).jias, 16(3), p.253.