Social and reputational capital accounting as a means of the corporate governance effectiveness assessment
The purpose of the article is to study the methodological aspects of social and reputational capital accounting as a necessary factor of assessing the effectiveness of corporate governance. It is proved that social responsibility of the business is an important component of disclosing information ab...
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| Format: | Article |
| Language: | English |
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Zhytomyr Polytechnic State University
2020-04-01
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| Series: | Проблеми теорії та методології бухгалтерського обліку, контролю і аналізу |
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| Online Access: | http://pbo.ztu.edu.ua/article/view/203144/203062 |
| Summary: | The purpose of the article is to study the methodological aspects of social and reputational capital accounting as a necessary factor of assessing the effectiveness of corporate governance. It is proved that social responsibility of the business is an important component of disclosing information about social and reputational capital in the accounting system. Social responsibility lies in the business entity’s responsibility for the impact of its decisions and actions on society, staff, stakeholders. The features of social and reputational capital that have an impact on its valuation in the accounting system and disclosing in the company’s reports are highlighted, namely: multidimensionality of capital; complexity of identification and valuation; return on capital increasing; lack of investment. It is proved that when disclosing information about the degree of achievement of strategic goal of managing social and reputation capital in the accounting and reporting system it is necessary to take into account the interests of existing and strategic stakeholders. It is substantiated that the principles of materiality, completeness and response must be observed when disclosing indicators of social and reputational capital in the accounting and reporting system. A methodology for determining stakeholder rank in an accounting system is developed, which is based on the construction of stakeholder maps in the coordinate system. Stakeholders rankings have a significant impact on the list of reflected in the accounting system social and equity indicators, depending on the rank of stakeholders and their information requests. It is proposed to identify in the corporate governance system information on the key stakeholders’ interests and how to interact with them, which increases the level of stakeholders’ social responsibility and has a positive effect on the entity’s corporate reputation. Defined indicators of social and reputational capital elements estimation allow us to satisfy main stakeholders’ information needs. |
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| ISSN: | 1994-1749 2708-4957 |