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Social Accounting in the Social Economy: A Case Study of Monetizing Social Value
Abstract
This chapter was based on one of the largest Spanish cooperative groups, which is part of the social economy sector (SES). Added value is a useful concept; however, after analyzing this case, the authors found that social accounting provides additional information about the social value that companies generate. Then, by applying social accounting complemented by a value-added statement, these companies belonging to the SES can quantify, monetize, and compare their social value and added value, and demonstrate their contribution to society. Social accounting is necessary to demonstrate and understand the value of social economy companies, since their value is not always fundamentally centered on commercial activity; at least not only. They can monitor their effort in terms of specific social values that are not part of the market. Because of this, their value is not reflected in traditional financial statements.
... For example, some doubts persist about how social procurement might require more resources than traditional procurement [2,3,5,16,25,27,32], how it might displace "ordinary" workers [14,15,27], or that social value and employment requirements are di cult to evaluate (cf. [1,26,31,[33][34][35]). Other concerns relate to whether, despite its potential business opportunities, engaging in social procurement benefits brand goodwill or not [27], and whether collaboration around social procurement is di cult [32]. ...
... Secondly, routines for following-up individual internships would help resolve general uncertainties regarding the results from social procurement, which has also been highlighted by previous research as necessary for social procurement to be widely accepted (cf. [26,31,34,35]), and thus legitimize employment requirements in practice. Implementing follow-up routines would benefit supervisors of ER interns, as getting feedback on what happened to them after the internship could help assuring them that their engagement in the ER interns has had long-term e↵ects. ...
Private and public organisations are increasingly using their purchasing power to mitigate societal issues and create social value. This is called social procurement. Due to problems such as segregation, unemployment, and social exclusion, social procurement in Sweden has focused on employment requirements. This is a type of criterion within social procurement that is used to create employment opportunities for marginalised long-term unemployed people, such as immigrants, youths and/or people with disabilities. These target groups often live in segregated neighbourhoods in run-down housing. This situation has led organisations in the Swedish construction and real estate sector to implement employment requirements in the procurement of their building and refurbishment projects and also in the facilities maintenance of the buildings, often hiring their own tenants. By hiring unemployed people to work with refurbishing their run-down housing, and supplying more labour to the construction sector, employment requirements have the potential to create social value for individuals, organisations, and for society.
However, it is unclear how social procurement and employment requirements unfold in practice and what it means for the daily work of individual and organisational actors. Working with employment requirements can spur new ways of thinking and organising; create new roles, actors and responsibilities; create new practices, knowledge and coordination needs; and create new business opportunities. These new ways of thinking and organising, requires closer empirical, theoretical and conceptual examination. Therefore, this thesis aims to analyse how individual and organisational actors work with social procurement and how this work brings about institutional change processes that affect the everyday work of these actors. This thesis builds on a qualitative research design, mainly using interviews, where the practice-oriented theoretical perspectives of institutional work and institutional logics are applied to analyse how practices, roles, identities and norms change as a result of working with social procurement.
The findings in this thesis make several contributions to both theory and practice. For social procurement research, in the context of the construction and real estate sector, this thesis adds rich details about what employment requirements mean for individual actors, and their professional roles, identities and daily work practices. The research also provides details on what enablers, drivers and barriers there are for working with employment requirements, as well as a discussion on which type of actors that are affected by these enablers, drivers and barriers.
For the theoretical perspectives of institutional logics and work, this research adds insight and an empirical example of how a conflicting and disruptive institutional logic collide and mesh in a tightly regulated and institutionalised environment, and how a sustainable concept may become institutionalised despite considerable inertia, through the use of creative institutional work. Moreover, the research illustrates how actors differ in terms of the type of institutional work they conduct, and how these different kinds of ‘institutional workmanship’ interact. It also calls into question the role of intentionality in institutional work.
For practitioners, the findings highlight what works well and less well when actors work with employment requirements. The identified barriers constitute a concrete list of areas in which adjustments can be made to enable an effective and efficient creation and dissemination of employment requirements and associated practices. For those already working with employment requirements today, the findings acknowledge the struggles that individual actors face when working with employment requirements, which can help legitimise their roles and practices and, by extension, the use of employment requirements.
Keywords: social procurement; employment requirements; institutional logics; institutional work; organisation; practice; rhetoric; roles; work; qualitative study; interviews; construction and real estate sector, social value.
... For example, some doubts persist about how social procurement might require more resources than traditional procurement [2,3,5,16,25,27,32], how it might displace "ordinary" workers [14,15,27], or that social value and employment requirements are difficult to evaluate (cf. [1,26,31,[33][34][35]). Other concerns relate to whether, despite its potential business opportunities, engaging in social procurement benefits brand goodwill or not [27], and whether collaboration around social procurement is difficult [32]. ...
... Secondly, routines for following-up individual internships would help resolve general uncertainties regarding the results from social procurement, which has also been highlighted by previous research as necessary for social procurement to be widely accepted (cf. [26,31,34,35]), and thus legitimize employment requirements in practice. Implementing follow-up routines would benefit supervisors of ER interns, as getting feedback on what happened to them after the internship could help assuring them that their engagement in the ER interns has had long-term effects. ...
Social procurement is increasingly used by organizations to create social value. An important feature of social procurement used to mitigate issues with social exclusion is employment requirements, which aim to create internships for unemployed marginalized people. However, little is known of their effects on people working at an operative level. Through 23 semi-structured interviews with practitioners in the Swedish construction and real estate sector, this paper adopts a practice lens to analyse the effects of employment requirements (ER). Findings show that practitioners must handle the tension between old and new practices, and strike a balance between fulfilling formal responsibilities and performing new practices on an ad hoc basis, and finding the time and resources to do so. Practitioners act as practice carriers for both traditional work tasks and new employment requirement practices, which can lead to role ambiguity. The paper provides novel details for how employment requirements unfold in practice. It also adds to practice theory by suggesting an important relational aspect between first-order, premeditated practices, and second-order, emergent practices, and how both types of practices are vital for working with employment requirements.
... On the other hand, and in a similar way, it was necessary to adapt the variables relating to the return to public administrations, focusing on the characteristics of crowdfunding campaigns and projects instead of companies and organizations. Finally, due to this adaptation and criteria for integrating the framework in crowdfunding, instead of "consolidated social value" we adopted the concept of "integrated social value" (ISV), in line with recent advances in measuring social impact of the SSE sector (Lazcano et al., 2019). ...
Although fintech and collaborative funding platforms have evolved into sophisticated information and interaction systems, it is still complex to measure their social impact, especially when it comes to public value-driven platforms such as civic crowdfunding. Addressing this problematic question, at both, the conceptual and technical level, in this article we present a novel dynamic system framework and implementation for assessing the social impact of crowdfunding campaigns through the Goteo.org platform. Our contribution derives from an interdisciplinary team effort led by the non-profit Platoniq Foundation (founder and main promoter of the Goteo platform) in which social researchers and software developers worked together in order to improve the accuracy and visibility of crowdfunding campaigns in relation to their social impact. This approach for calculating and visualizing social impact, as a proof-of-concept, is based on a methodological framework inspired by previous advancements in the non-profit and social responsibility sectors, integrating both, user-generated data and external data sources and indicators. As a recently launched system, in its current implementation on Goteo it integrates the first version of a virtual calculator embedded in the campaign design interface. This new digital affordance allows project promoters to better estimate monetary and non-monetary-related impact regarding social value, public return of investment and other specific concepts related to their crowdfunding campaign and the derived project. Results of this social impact calculator, which translates diverse value variables into economic estimations, is also made visible to all users as potential campaign donors, and operates in connection with previously implemented SDGs indicators and social, democratic and ecological footprints in Goteo.
... This concept stems from the concern that contemporary businesses should demonstrate the wider roles they play in society, beyond their market value creation, recognizing the wider role they can play in local communities and the social benefits they generate (Brown et al., 2010). In our case, the definition that we will adopt will be the relatively recent one of Lazcano et al. (2019), which defined social value as the "utility provided by social assets generated by an organization to their stakeholders or interest groups related to the organization" (p. 149), understanding social assets as those that provide well-being or discomfort to some group members of society. ...
Purpose
European elite professional basketball clubs do not pursue economic profit maximization per se , but they also seek to create social value for stakeholders due to the community outreach and the emotional bonding that such organizations create. Here the purpose of this paper is to use an accounting system called social accounting to measure the social effects of an organization's activity in an effort to monetize and describe the holistic value created by these sports organizations for their stakeholders.
Design/methodology/approach
This study applies an adapted, redesigned social accounting using SPOLY methodology to two elite basketball clubs in the ACB League (Spanish First Division), in order to monetize their social value. This methodology integrates non-market social value (value created for stakeholders without a financial transaction) with market social value (value created for stakeholders through market transactions), by monetizing validated dimensions for non-market and market social value obtained via information provided by clubs and their financial statements.
Findings
Clubs create a quantifiable social value for stakeholders through non-market and market dimensions. Value creation is not merely restricted to securing financial profit for shareholders but rather takes on another dimension in which the various stakeholders receive a holistic value from clubs.
Originality/value
This study provides evidence that clubs generate a quantifiable social value for their stakeholders that complements their economic value. This can help clubs to set up their own narrative concerning value creation for stakeholders and enable them to convey and manage the overall distributed value for stakeholders.
... Esas actuaciones que facilitan la cohesión social, que aportan al desarrollo cultural, medioambiental, y que van promoviendo un mundo mejor. En paralelo a la generación de un sistema de información del valor social a través de la implantación de este modelo, se está avanzando así mismo en el análisis de su aplicación e impacto en la economía social (Lazcano et al., 2019) o su incorporación a la gestión estratégica (Echanove, 2020). ...
El sector fundacional en el País Vasco desarrolla su actividad en una variedad de ámbitos en sintonía con el amplio abanico que recoge el artículo 4-1 de la Ley de Fundaciones Vascas, construyendo su elemento común el de servir a fines de interés general. Este sector supone 13.045 empleos remunerados anualizados, una facturación de más de 566 millones de euros, y un Valor Añadido Bruto (VAB) generado de 219 millones de euros. A partir de la declaración del estado de alarma en marzo de 2020, se abrió una ventana de gran incertidumbre en la que las organizaciones tuvieron que desplegar toda su agilidad y creatividad para dar respuesta a situaciones nuevas y que requerían acción inmediata. Asimismo se plantea empezar a trabajar sobre el contexto post pandémico, repensar estratégicamente las organizaciones, imaginando un futuro en el que la pandemia habría dejado cambios estructurales en sus modelos de gestión y de organización del trabajo. En este artículo se va a analizar cómo ha afectado la pandemia a las fundaciones en Euskadi y sus perspectivas de futuro en este próximo contexto post pandemia para dar cumplimiento a sus fines fundacionales y mantener su papel cohesionador y solidario. Para ello, junto con un análisis de la literatura más recientesobre los análisis llevados a cabo sobre la pandemia y las fundaciones y la economía social, se llevará a cabo un análisis del sector fundacional en Euskadi, sus rasgos y situación específica a través de encuestas y entrevistas en profundidad con los agentes sociales.
... Ethical considerations concerning human rights should be at the bottom of how society, companies, and the environment relate to each other. Much research has already been done on quantifying social values [92,93]. ...
The current energy prices do not include the environmental, social, and economic short and long-term external effects. There is a gap in the literature on the decision-making model for the energy transition. True Cost Accounting (TCA) is an accounting management model supporting the decision-making process. This study investigates the challenges and explores how big data, AI, or blockchain could ease the TCA calculation and indirectly contribute to the transition towards more sustainable energy production. The research question addressed is: How can IT help TCA applications in the energy sector in Europe? The study uses qualitative interpretive methodology and is performed in the Netherlands, Germany, and Poland. The findings indicate the technical feasibilities of a big data infrastructure to cope with TCA challenges. The study contributes to the literature by identifying the challenges in TCA application for energy production, showing the readiness potential for big data, AI, and blockchain to tackle them, revealing the need for cooperation between accounting and technical disciplines to enable the energy transition.
... Although the work is theoretical, it is underpinned by a large number of cases analyzed in recent years by the social accounting for sustainability (SAS) research group, recognized by International Centre of Research and Information on the Public, Social and Cooperative Economy (CIRIEC), some of which are published in leading journals, general papers (Retolaza et al., 2016;Retolaza and San-Jose, 2021), on its application in the social economy in general (Lazcano et al., 2019;Lazkano and Beraza, 2019;Etxanobe, 2020;Lazkano et al., 2020), on its usefulness to measure hospital efficiency , about sport clubs (Mendizabal et al., 2020;Mendizabal and Garcia-Merino, 2021), applied to ecclesiastical organizations , to universities and education (Ayuso et al., 2020;Arimany-Serrat and Tarrats-Pons, 2021;Barba-Sánchez et al., 2021a), its benefit for technology parks (Blázquez et al., 2020;Torres-Pruñonosa et al., 2020), associations of fishers (Guzmán-Pérez et al., 2018), tourism (Guzmán-Pérez et al., 2021), public tenders , and agri-food companies (Barba-Sánchez et al., 2021b). These studies identify the importance of emotional value and propose its inclusion in social accounting, which has so far been partially addressed by few studies (Ruiz-Roqueñi, 2020;Tirado-Valencia et al., 2021). ...
Social accounting focuses on value transactions between organizations and their stakeholders; both market ones, where the value perceived by the different stakeholders is identified, and non-markets ones, where transactions are monetized at their fair value. There was long awareness of an emotional value translation, linked to the transfer of different products, services, remunerations, and incentives, regardless of whether they were market or non-market. Yet that emotional value seemed to be anchored in the field of psychology and managed to elude economic science. This study seeks to identify emotional value with consumer surplus and, by extension, of the other stakeholders in a value transfer process. This proposal allows the emotional value to be anchored in the micro-economy and allows it to be objectively calculated using a regression involving three elements: the market price, the fair value interval, and a perceived satisfaction score by the different stakeholders in the form of significant sampling. The result obtained not only allows Social Accounting to be complemented with emotional value, but it also facilitates its incorporation in the strategy to optimize the emotional value. Furthermore, it enables a quantification of the perceived subjective utility, which opens up a research path where some possible lines are clearly identified.
... Nevertheless, only a small amount of research initially incorporated this evolved perspective in regard to economic and social value generation (Nelson and Winter, 1982;Williamson and Winter, 1993). It is true that different methodologies (Olsen and Galimidi, 2008;Tuan, 2008;Mulgan, 2010), such as Social Return on Investment (SROI) (Lingane and Olsen, 2004), social accounting (Lazcano et al., 2019;Retolaza et al., 2020) or social value monetisation (Retolaza et al., 2016) have emerged in order to provide quantitative methodologies. Nonetheless, even though there has been an increasing concern among scholars to assess the social value of companies, there is still the need to cover the gap relative to quantitative methodologies that will allow for the measurement of the social value that enterprises generate. ...
The aim of this article is to map the intellectual structure of scholarship on economic and social value in the sport industry. Given that bibliometric techniques are specially appropriate for identifying the intellectual structures of a field of knowledge and complement traditional literature reviews, a co-citation bibliometric analysis has been applied. This kind of analysis identifies networks of interconnections. Therefore, we aim to detect both the most and the least active research areas in this field, as well as their sub-disciplinary composition. There is an abundance of literature on sport efficiency and economic efficiency in the sport industry, our main conclusion is the identification of a literature gap in regard to social value in sport organisations, which is expected to be a research opportunity for scholars. This is in line with the lack of standardisation in the measurement for social value in sport organisations. In fact, similar to analysis undertaken in the past few decades of other industries with contributions to stakeholders and the multi-fiduciary theory of stakeholders, both the creation of social value indicators for sport entities and the empirical analysis of social efficiency in sport institutions, are identified and outlined as future areas of research. Therefore, this bibliometric analysis will contribute to determine the future challenges that this area of research will face in the following years so as to fill the literature gap identified.
... Nonetheless, some scholars joined both values into a more integrated perspective (Nelson and Winter, 1982;Williamson and Winter, 1993;Torres-Pruñonosa et al., 2012;San-José et al., 2012Retolaza et al., 2018). In fact, some methodologies have emerged over the last years to quantify social value of organisations (Lingane and Olsen, 2004;Olsen and Galimidi, 2008;Tuan, 2008;Mulgan, 2010;Retolaza et al., 2016Retolaza et al., , 2020Lazcano et al., 2019). ...
This article aims to measure both the economic and social value of Tecnocampus, a Science and Technology Park in its region of influence (Mataró city in the Maresme region of Catalonia, Spain). Our results show that the impact of Tecnocampus has a socioeconomic cost–benefit ratio of 2.39. Measuring the impact of this multifaceted centre requires a diverse approach. Although the methods used are not new, the combination of them presents a novel approach to measure the impact of an institution of this nature. We have measured the economic value with the Input–Output model, including the Social Accounting Matrix. On the other hand, for social value calculations, we have used cost–benefit analysis adding measurements of firm localisation to estimate externality effects. Our main results present an economic value of more than 0.054% of the Catalan GDP, whereas the employment impact represents almost 0.37% of total employment in the region. The total economic multiplier of Tecnocampus activity is estimated to be 1.89. Social value generates an additional 0.50 euros to the multiplier according with our analysis. This additional social value represents an increase of productivity estimated in 20 million euros of operational income for Catalan firms and the creation of seven additional firms in the Maresme region as a result of knowledge spillovers. The social value also includes reduction of over-education caused by a better matching between graduates and enterprises, a more direct application of research, and an increase in consumer surplus. Finally, we discuss the policy implications of our findings to promote investments in this kind of infrastructures.
... ies that demonstrate its application to specific corporate and institutional contexts (Retolaza & San-Jose, 2018;, such as the tertiary sector in general, universities (Ayuso et al., 2020), religious educative organizations , cooperatives and non-profit organisations, as well as to specific companies (San-Jose et al., 2017), and other institutions (Lazcano et. al, 2019;Retolaza et al., 2015;Retolaza et al., 2016a). The applications conducted so far put at the centre of the analysis a single entity around which they reconstruct and calculate the social value generated and distributed to the main stakeholders. It should be noted that these processes of reconstructing social value are generally carried ou ...
Science and Technology Parks (STPs) have made a positive contribution to regional development in the last decades. In general, the assessment of their level of performance has been based on two major variables: number of new companies and number of new jobs created. In this paper we propose the use of social accounting to measure the social value (SV) generated by STPs as an additional tool to assess the level of contribution of STPs to social development. Social accounting could be of interest for policy makers and regional governments in order to evaluate regional STPs and their social performance. In addition, in this paper we present an innovative methodology for calculating SV. Instead of using primary data to calculate SV (through interviews or consultations with individual stakeholders), we propose the use of secondary data available in open databases to measure SV. In this way, the measurement of SV for a large number of individual organizations can be achieved using a limited amount of resources. In this line, and as a seminal implementation of this methodology, we calculate the SV generated by four STPs in two different regions and countries belonging to the European Union using secondary data. Thus, the main contribution of the paper is twofold: on one hand it proposes social accounting to assess the performance of STPs through the calculation of SV, and on the other hand it implements a new methodology to calculate SV which requires the use of a lesser number of resources.
... In relation to the methodology, the database is not balanced and the data is based solely on accounting figures, although, as Harris and Fulton [44] point out, some of the benefits of cooperatives are not reflected directly in the business accounts. Therefore, as Lazcano et al. [45] suggested, there is a need to standardise the social accounting to demonstrate and understand the value of social economy companies. Similarly, Parliament et al. [23] argue that this approach does not include non-market dimensions and objectives that are inherent to cooperatives in line with their own principles. ...
The main objective of this research is to contribute to the economic literature on cooperative entrepreneurship as a model for sustainable development, taking into account the special alignment of the cooperative principles (ICA) with the UN Sustainable Development Goals (SDGs). It offers new empirical evidence from Spain, based on Stakeholder Theory, about the differences between cooperatives (Coops) and Capitalist Firms (CFs) in relation to the distribution of economic value between the different stakeholders. For this purpose, panel data was analysed using the Correlated Random Effects approach. The results reveal that cooperative firms generate value for some of the stakeholders analysed, specifically for their partners and creditors, but no significant differences have been found with CFs in terms of workers and the state. In both cases, it can be inferred that the period analysed has influenced the results, since it has been found that, first, cooperatives adjust wages downward rather than dismiss workers during a recession, which is in line with previous research, and second, that their tax contribution to the state is lower because they are subject to a more favourable tax system in Spain.
... This ratio is the result of comparing social value (output) with budget (input) and is called Social Value Added Index (SVAI). This index has been used recently in other cases (Lazcano et al., 2019;San-Jose et al., 2019). In short, SVAI compares the social value generated by an organization with its budget. ...
Religious oriented organizations (ROOs) have frequently higher levels of motivation among their employees, because the aims of ROOs and those of collaborators and stakeholders are usually aligned. However, sometimes, when the management of ROOs becomes professionalized, tensions between aims and efficiency are more frequent, and productivity levels start to decline. The most widespread current management theories are focused on profit maximization and are not especially helpful to religious organizations which try to enhance their productivity levels and, at the same time, achive their mission and aims. In order to fill this gap, in this research, we will develop two main concepts: social accounting and organizational citizenship behavior (OCB). We will propose the use of social accounting to calculate the social value generated by ROOs and, from that point, build new indicators able to measure the organizational citizenship behavior (OCB) of collaborators working in ROOs. We will exemplify this theoretical development with the actual case of the diocese of Bilbao. In short, the main objectives of this work are two. The first objective is the development of a theoretical framework able to enhance the levels of social value creation inside religious (and socially oriented) organizations using social accounting. The second objective is the use of data from the 16 educative centers of the diocese of Bilbao to ilustrate that social accounting is a valid tool to measure social value. Additionally, we will show that social accounting can be a tool to assess management decisions in order to enhance organizational and individual OCB in ROOs and, in this way, generate moral satisfaction for employees and collaborators in their organizations.
Purpose
This study aims to structure a model for integrating social value into strategic management based on identifying the critical success factors (CSF) for such integration in the investigated companies.
Design/methodology/approach
This research was based on the actor–network theory. Through a rigorous approach to the case study methodology in a two-stage process lasting 21 months, we carried out this study.
Findings
Companies that use the polyhedral social accounting model in their strategic management processes do so without a reference model. We identified CSF for integrating social value, which was incorporated into a protocol model based on stakeholder theory and the use of social accounting.
Practical implications
Practitioners can use the proposed model to maintain the alignment of strategic performance and purpose. Using social accounting based on indicators and financial proxies allows managers to incorporate social value into strategic management in terms of financial value.
Social implications
The institutional demand for social information is based on the growing sensitivity of companies. Aligning social values with business strategies contributes to social sustainability.
Originality/value
This study focuses on an unresearched emerging phenomenon. Since the first approach to stakeholder theory, the development of a stakeholder-oriented strategy has faced the lack of a stakeholder accounting system. The polyhedral model of social accounting could help overcome this problem as it provides information that allows a novel and innovative method to make a stakeholder-oriented strategy effective.
Cultural and creative industries generate $2250b in revenue and 29.5 million jobs worldwide. The Museum sector is highly relevant among them and generates social value for society, taken to be the value created for stakeholder groups. However, the system used to measure their value generation is limited to visitor volume and revenues. Policymakers then assume that the role of those organisations is to generate profit or attract visitors. They produce financial-economic statements and provide further information on visitors and their type and satisfaction, but undoubtedly, museums generate far more than those aspects reflected in financial-economic statements. We selected a key group of museums in order to demonstrate the other aspects positively valued by museums stakeholders. After analysing 104 stakeholder-dialogue interviews, the aspects evidenced were as follows: museums are responsible businesses, generate value for a group of stakeholders, have agreed to establish a common stakeholder map, and museums could work better when aligned.
Urban food markets can promote sustainable development through the generation of social value in the spaces where they are located and contribute to sustainability on a global scale. To measure this, indicators are required to evaluate and monitor these markets. Studies in this regard are scarce and often developed according to top-down schemes. This study seeks to remedy this relative deficiency and aims to design specific social sustainability metrics for these organizations from a bottom-up perspective. The Integrated Social Value model is used. This social accounting system is considered appropriate in this study due to the phenomenological approach on which it is based and is applied to a service cooperative located in the Canary Islands. The main contribution of this work is that new social sustainability indicators are obtained and applied to the analysis of an entity, and they are relevant and understandable to stakeholders. This would provide, in future developments, a system of sustainability indicators for similar organizations in Spain.
This study aims to discuss the use of social accounting, supported by practice theory, and its contribution to social accounting theory. It is possible for stakeholder accounting to be carried out by various companies. It has been analyzed by multiple case studies, and the results will enable us to help the general public understand the social values that companies generate for society and the resulting impact on stakeholder, and therefore social well-being. The results of the analyses will provide companies with feedback on their social impact, which will help them to become more efficient. This study defines a framework that might guide the social value and nonfinancial information of organizations. Social accounting is seen as an accounting system based on accepted accounting principles, seeking to emphasize the notion of corporate accountability. From the analysis of more than 90 cases, we conclude that there is a possibility of systematically introducing stakeholder accounting or recalled socioemotional accounting (SĒA) into all organizations.
There is no doubt that a PhD Degree is valuable, but its value is important from the perspective of university management, so measuring it using monetary theory is a useful way to illustrate and increase university outcomes. Universities generate and create value for stakeholders, but what actual value is generated by these highest university degrees? Furthermore, is the concept of value for measuring PhD degrees unique? The theory of value is more than 300 years old, but there is still a gap in the literature in terms of monetising entities’ actions. There are a number of options which depend on what criteria are used to monetise value, including cost, price, opportunity costs and future benefits. We carry out a Delphi analysis based on 20 Management Science Experts, establishing consensus as the basis. We seek to contribute to the subjective theory of value in which value depends on users’ perspectives. Our findings reveal first that it is indeed possible to monetise the value of a PhD degree and second that views of the concept of value differ and therefore so do the actual values. One final conclusion is that not only is it necessary to establish the value of such degrees but also to identify how to factor that value into the strategic plans of universities. This means that the criteria used need to be clarified, because when measuring and monetising a PhD degree properties are less important than individual views in achieving the desired objectives.
En la actualidad, las organizaciones tienden a legitimarse por el valor social que generan, y no solo por el económico. Para el caso de la sanidad, esta perspectiva es obvia, ya que las entidades sanitarias se deben a sus pacientes y a su bienestar. Para ello, será necesario saber qué opinan los stakeholders perceptores del valor social. Este artículo va más allá, y no solo se conocen los valores sociales, sino que se llegan a monetizar. Así se logra saber cuál es el valor social generado por un hospital, el Hospital de Santa Marina de Bilbao. Además, se analiza cuáles son los aspectos más complicados en su aplicación, qué les aportó y cómo es posible extenderlo a otros hospitales.
Desde ya hace un tiempo, la narrativa de los stakeholders se ha incorporado de forma decidida en un amplio elenco de organizaciones, contribuyendo al ideario de las principales empresas del mundo. Sin embargo, para un adecuado desarrollo de la misma no es suficiente incorporarla al propósito, es también necesario incorporar dicha perspectiva en los resultados. La transferencia de valor mediante mecanismos no monetarios o incluso emocionales, y la distribución de valor a múltiples stakeholders requiere un sistema más completo del que ofrece la contabilidad financiera. Un instrumento pensado principalmente para identificar el valor monetario residual, es decir, el beneficio; donde el valor distribuido a otros stakeholders, como por ejemplo los trabajadores y proveedores, aparece como un gasto con signo negativo; es decir, como una merma de valor. Para hacer frente a este problema y a la necesidad de una información más completa, tal y como está demandando la teoría de stakeholders, se necesita ampliar el actual sistema de información contable. En el presente artículo se propone una ampliación del concepto de valor, incorporando además de las transacciones basadas en precios, las transferencias realizadas en un entorno de no mercado (sin contraprestación de precio) y aquellas de carácter emocional; así mismo, se propone una ampliación desde una perspectiva unidimensional, centrada en los accionistas a una multidimensional que incorpore a la totalidad de los stakeholders de la organización. En el resto del artículo se reflexiona sobre las experiencias y las implicaciones de este modelo decontabilidad para los stakeholders que, sin duda, tiene un excelente encaje en la Economía Social.
Las entidades de economía social han sido reconocidas como pieza clave en la agenda de desarrollo sostenible, pero aún sigue siendo necesario avanzar en la cuantificación de la aportación efectiva que realizan a la comunidad local. Este trabajo trata de medir el valor social de una de las familias de la economía social cuyo impacto socio-económico no ha sido abordado por los estudios empíricos realizados al respecto, las cofradías de pescadores. El contexto geográfico de la investigación es el archipiélago canario, empleándose la contabilidad social (Retolaza et al., 2016) como métrica del valor social. Se trata de un sistema de información ampliado que permite configurar una base de variables extrapolables a este tipo de entidades en otros territorios, y mostrar que la contribución que realizan las cofradías a sus stakeholders va más allá de variables económicas, y apoyan las funciones de sostenimiento del sector pesquero que les han sido asignadas por la normativa nacional y autonómica.
La presión social e institucional al tejido empresarial por generar y evidenciar un valor más allá de sus resultados económicos se ha incrementado en los últimos años. A las demandas de información sobre los impactos positivos y negativos de la actividad empresarial se suma ahora la necesidad de plantear e implantar acciones de impacto social positivo. En este contexto las empresas de Economía Social se enfrentan a un reto importante. Por su naturaleza cabría atribuirles una mayor generación de valor social y, sin embargo, esta no puede evidenciarse exclusivamente a través de la formulación de sus aspiraciones sociales. Surge la necesidad de integrar de forma diferenciada la generación y distribución de valor social en su gestión estratégica. Lo anterior se sustenta en el presente artículo en un análisis comparativo entre empresas de Economía Social y empresas mercantiles sobre la gestión del valor social en dos hitos de sus procesos de gestión estratégica: la declaración de la intención estratégica y la medición de resultados. Del análisis se infiere la necesidad de contar con sistemas de información social robustos, que permitan la trazabilidad entre la definición del propósito de la organización y sus resultados y por ende, la comparativa entre organizaciones. La aplicación del modelo poliédrico de contabilidad social se ha considerado adecuada en estudios previos para la medición y comunicación del valor social generado por organizaciones de la Economía Social. Con el presente artículo se pretende incorporar un elemento novedoso al proponer su integración en los procesos de gestión estratégica.
The aim of this paper is to determine the success factors based on principal change driving forces when implementing social accounting into social companies, and by extension, gain an insight into the overall impact of social accounting, in other words the monetization of social value. It includes a quantitative analysis of the various effects involved in implementing social accounting in Social Economy companies: 1) improving relations with stakeholders; 2) the commitment of company employees; 3) an interest in comparing results with other companies that have also introduced social accounting; 4) networking with other organizations through social accounting. Twenty-seven percent of the social companies that apply social accounting participated in the study. It was applied at three points (prior to, immediately after and six months after applying social accounting), social accounting in order to compare expectations of perceptions regarding communication, strategy and results after implementing social accounting. The results of statistical analysis conducted by SPSS Statistics 26.0 suggest that the main reason that leads social companies to apply social accounting is to improve reputation. Likewise, they suggest that the more time passes, the greater the incidence of social accounting in communication and strategy. This study contributes to “Lewin’s change theory” whereby the change project is implemented by generating greater collaborator participation through empowerment in social economy entities, where employee participation is crucial.
This chapter addresses the topic of accountability and reporting of social entities as concepts and instruments of governance that are used to demonstrate transparency and rigor regarding their activity to their stakeholders. The objective of this chapter is to understand how these instruments are used by social entities, and to establish whether this use brings about an increase in the trust created between theses entities and their funders with regards to the possibility of obtaining increased funding. With this in mind, two surveys were carried out, one for social entities and the other for funders, with some similar content, in order to enable a comparison of answers. This study enabled us to conclude that social entities have a formal and periodic relationship with their funders, that they believe that the current accountability and reporting (A&R) quality level is adequate, that social entities' A&R information, although not decisive, is important for funding decision making, and if social entities were to receive substantial funding, this would improve their social impact.
Con este artículo se pretende, en una primera aproximación, dar un paso más aportando una propuesta metodológica de cálculo y presentación del valor añadido generado por la empresa, así como su distribución entre los distintos factores que han contribuido a su obtención, entendiendo que la homogeneización de su cálculo y presentación podría ayudar a la interpretación de la información financiera basada en este excedente.
This article reports the results of the travel cost model using the standard and the truncated count data models to estimate the economic value of the Similan Islands, Thailand, from SCUBA diving. The estimated consumer surplus per visit to the Similan Islands using the truncated negative binomial model was US54.96 m. This study shows that, even without non-use values, coral reefs of the Similan Islands, if properly managed and maintained, will continue to have significant value to both Thai and overseas SCUBA divers, as one of the natural treasures of the world.
We gratefully acknowledge the assistance provided by many individuals and organizations in developing this paper. We are grateful for the financial support received from the ESRC, The Carnegie Trust and the ACCA who have funded ‐ or are continuing to fund ‐ elements of this research project. We wish to express out thanks to the staff at Traidcraft plc and Traidcraft Exchange (especially Murdoch Gatwood) who have been so supportive and patient throughout the (continuing) research process. Jan Bebbington, David Collison, Emily Dick‐Forde, Reza Kouhy, Ken McPhail and Noel Tagoe of The University of Dundee, and Sue Llewellyn of Edinburgh University were especially helpful in helping us to try to clarify the theoretical issues raised by the paper. We also acknowledge the very helpful comments on earlier drafts of this paper from Nabil Baydoun, Jan Bebbington, Jane Broadbent, Penny Ciancanelli, John Grinyer, Jim Haslam, John Innes, Richard Laughlin, Alasdair Lonie, Peter Raynard and colleagues who attended presentations at the CSEAR Summer School and at the Universities of Glasgow and Dundee.
Focuses on sources of capital to an organization, investment and flows of capital within an organization, interaction with markets, the generation of economic returns, and the potential for the creation of value. Illustrates how the creation of value provides benefits to employees, shareholders, and society. Provides numerical illustration of the dollar value of a capital project to employees, shareholders and separately to society. Provides the foundation for understanding concepts such as economic value added, a practical understanding of how economics works, especially in terms of allocation of capital, invested capital, flowing capital, and returns on capital. Traces the creation of value to the markets for goods and services.
This article provides a critique of the Global Reporting Initiatives (GRI) guidelines, sustainability reporting (SR) guidelines and also examines their applicability to public and third sector organizations. The article finds that these guidelines promote a ‘managerialist’ approach to sustainability rather than an ecological and eco-justice informed approach, potentially causing them to fall into an evaluatory trap. This means that they do not contribute to sustainability. Since public and third sector organizations have yet to take up SR with the same fervour as the private sector, the opportunity exists to learn from the critique of the use of the GRI reports in practice. As such this article examines the implications of this finding for public and third sector organizations. A conclusion is that there is an opportunity for the GRI to develop guidelines further in line with existing practice to increase their relevance and utility.
This paper provides one review of the social accounting literature of the last 25 years or so with particular attention to the role played by Accounting, Organizations and Society (AOS) in its development. The principal theme of the essay is that social accounting, at its best, is designed to open up a space for new accountings between the ‘conventional' accounting literature and practice and the ‘alternative' critiques and theorising. It seeks to do this, as the title suggests, through privileging — even demanding — engagement and imaginings of new accountings that — it seems inevitable — owe at least as much to pragmatism as to critique. Despite many poor beginnings and a heavy weight of substantive critique, the social accounting project(s) are advancing and are increasingly informed by the alternative/critical projects. The way forward proposed is for social accounting to both draw more from the wealth of theorising and, simultaneously, to take more confidence in itself and learn how to write up — and publish — the extensive experience of engagement which is so central to social accounting.
We examine the effects of recreational scuba diving in the Saba Marine Park in the Netherlands Antilles over a nine-year period. Levels of diving have remained low whereas dive fees have provided a major source of income to this park. We studied 5 dive sites where the average number of dives per site per year ranged from 445 to 2,163. At each site we recorded benthic parameters and levels of damage within at least 25 randomly placed quadrats in areas designated to be High use (0-20 m from mooring) or Low use (40-60 m from moorings), at yearly or biennial intervals. Within the same dive site, there was significantly more broken coral and fragments of live coral in High use areas than Low use. However, across sites, damage was not significantly related to diving intensity and nor did it accumulate over time. The Saba Marine Park shows that it is possible to fund protection at sustainable levels of use.
The purpose of this chapter is to outline the development of the idea of "stakeholder management" as it has come to be applied in strategic management. We begin by developing a brief history of the concept. We then suggest that traditionally the stakeholder approach to strategic management has several related characteristics that serve as distinguishing features. We review recent work on stakeholder theory and suggest how stakeholder management has affected the practice of management. We end by suggesting further research questions.
This book deals with the limitations of economic and financial accounting as an appropriate instrument to reflect the real value created or destroyed by an organization. The authors present a sustainable social accounting approach that considers both the social and economic value – Blended Value – generated by an organization for all of its stakeholders. This approach is based on four major theories – Stakeholder Theory, Action Research, Phenomenological Perspective and Fuzzy Logic – and was developed on the basis of a cost-benefit analysis.
This article has used the case of the Etxanobe restaurant in Bilbao (Spain) to illustrate value creation for stakeholders according to the principles of the new story of business: value creation, purpose, interconnection, simultaneous creation of value, cooperation, and human complexity. This work seeks to contribute to the analysis of value creation for stakeholders, and illustrate in a single case the effectiveness of these six principles, which can be validated in small businesses at least. Likewise, the results of this study have significant implications concerning value creation for stakeholders in business; cooperation, the power of relationships, and the interconnections among stakeholders are of greater importance, reinforcing stakeholder engagement.
Marx’s first sustained exploration of political economy was the Critique. It is not often read today because much of the material was treated more methodically eight years later in Capital. In fact, this brief preface is probably the most read part of the original, and for good reason. It is a compressed but often quoted overview of Marx’s self-described intellectual journey and also of the materialist theory of history, or historical materialism. Herein Marx argues that the economy is the key to the anatomy of society, pointing to the ultimate level of explanation of the dynamic of social life. “The mode of production of material life conditions the general process of social, political, and intellectual life.” Further, and very important because it is so often overlooked, Marx states that no economic system is surpassed until it has accomplished its historical work.
This paper considers the nature of the business model and its strategic relevance to negotiations. We elaborate a substantive definition of the business model as decisions enforced by the authority of the firm; this definition enables the analysis of business models through the analysis of individual firm choices. We situate negotiation outcomes within the strategy literature by considering "ambivalent value" - value produced by the interaction of partner firms that does not necessarily accrue to any of them. The extent of "ambivalent value" is unclear, but its persistence, despite changing structural market features, promises to help sustain superior profits in the long run. We conclude with an exploration of some ways in which firms' business models may impact their negotiation outcomes. Several of the proposed pathways work intuitively through the intrinsic characteristics (motivation, personality, etc.) of agents negotiating on behalf of the firm; others operate independently of those characteristics.
A Standardizing AmbitionDiscounting the FutureConclusion
Social and environmental issues have become a central part of the academic accounting subject field. Examines the range of papers in this area at the APIRA conference. Indicates some of the pitfalls – empiricism, theoretical awareness, relevance to practice, communication between academics – which need dealing with if the subject area is to grow with real strength.
All the available evidence suggests that companies which are run with a view to the long term interests of their key stakeholders are more likely to prosper than those which take a short term, "shareholder first" approach (Wheeler and Sillanpää, 1997). Indeed it is the central premise of this article that forces of economic globalisation and developments in the technology of mass communication will make stakeholder inclusion an increasingly essential component of corporate strategy in the 21st century. Put simply, companies, like governments and other established institutions, need to listen, to process and to respond positively to the values and beliefs of their stakeholders – most especially their customers, employees and investors. Failure to do this will reduce competitiveness and increase the risk of corporate demise.
In 1984, R. Edward Freeman published his landmark book, Strategic Management: A Stakeholder Approach, a work that set the agenda for what we now call stakeholder theory. In the intervening years, the literature on stakeholder theory has become vast and diverse. This book examines this body of research and assesses its relevance for our understanding of modern business. Beginning with a discussion of the origins and development of stakeholder theory, it shows how this corpus of theory has influenced a variety of different fields, including strategic management, finance, accounting, management, marketing, law, health care, public policy, and environment. It also features in-depth discussions of two important areas that stakeholder theory has helped to shape and define: business ethics and corporate social responsibility. The book concludes by arguing that we should re-frame capitalism in the terms of stakeholder theory so that we come to see business as creating value for stakeholders. © R. Edward Freeman, Jeffrey S. Harrison, Andrew C. Wicks, Bidhan Parmar and Simone de Colle 2010.
Editor's Note: John Elkington's new book, Cannibals with Forks: The Triple Bottom Line of 21st-Century Business, has been hailed as “practical, compassionate and deeply informed, a brilliant synthesis of his genius for cutting through the thicket of tough issues–in the world of business and sustainability–and producing elegant solutions that can be applied today” (Paul Hawken). We are pleased to have the opportunity to publish a selection from this award-winning book. In this discussion of partnerships, Elkington explores how effective, long-term partnerships will be crucial for companies making the transition to sustainability and offers approaches and examples of keen interest. Special thanks to Capstone Publishers, U.K., for their gracious cooperation.
The accounting profession has regarded itself as ethical ever since the first modern professional accounting body was founded in the second half of the 19th Century. However, the code by which members have bound themselves have been professional ethics codes, which are more concerned with the relationship between professional and professional, or professional and client, than that of the professional and society as a whole. Recently, a number of educational programmes have been developed which attempt to go beyond the limited view of professional ethics, and into the field of ethics and professionalism. These programmes are based on an application of the work of Kohlberg and that of Rest. In the opinion of the author these aspects of ethics and professionalism are important developments, which need to be followed up by the development of social accounting, which would be a practical demonstration of ethical concerns by members of the accounting profession. This aspect of business ethics is outlined in the chapter.
This paper reviews current research on supply chain management (SCM) within the context of tourism. SCM in the manufacturing industry has attracted widespread research interest over the past two decades, whereas studies of SCM in the tourism industry are very limited. Stakeholders in the tourism industry interact with each other to resolve their divergent business objectives across different operating systems. The potential benefit of considering not only individual enterprises but also the tourism value chain becomes evident. The paper examines the characteristics of tourism products, and identifies and explores core issues and concepts in tourism supply chains (TSCs) and tourism supply chain management (TSCM). Although there is an emerging literature on TSCM or its equivalents, progress is uneven, as most research focuses on distribution and marketing activities without fully considering the whole range of different suppliers involved in the provision and consumption of tourism products. This paper provides a systematic review of current tourism studies from the TSCM perspective and develops a framework for TSCM research that should be of great value not only to those who wish to extend their research into this new and exciting area, but also to tourism and hospitality decision makers. The paper also identifies key research questions in TSCM worthy of future theoretical and empirical exploration.
This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of agency costs, show its relationship to the ‘separation and control’ issue, investigate the nature of the agency costs generated by the existence of debt and outside equity, demonstrate who bears these costs and why, and investigate the Pareto optimality of their existence. We also provide a new definition of the firm, and show how our analysis of the factors influencing the creation and issuance of debt and equity claims is a special case of the supply side of the completeness of markets problem.The directors of such [joint-stock] companies, however, being the managers rather of other people's money than of their own, it cannot well be expected, that they should watch over it with the same anxious vigilance with which the partners in a private copartnery frequently watch over their own. Like the stewards of a rich man, they are apt to consider attention to small matters as not for their master's honour, and very easily give themselves a dispensation from having it. Negligence and profusion, therefore, must always prevail, more or less, in the management of the affairs of such a company.Adam Smith, The Wealth of Nations, 1776, Cannan Edition(Modern Library, New York, 1937) p. 700.
This paper examines the role of the corporate objective function in corporate productivity and efficiency, social welfare, and the accountability of managers and directors. I argue that since it is logically impossible to maximize in more than one dimension, purposeful behavior requires a single valued objective function. Two hundred years of work in economics and finance implies that in the absence of externalities and monopoly (and when all goods are priced), social welfare is maximized when each firm in an economy maximizes its total market value. Total value is not just the value of the equity but also includes the market values of all other financial claims including debt, preferred stock, and warrants. Stakeholder theory, argues that managers should make decisions so as to take account of the interests of all stakeholders in a firm (including not only financial claimants, but also employees, customers, communities, governmental officials, and under some interpretations t...
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