Social business, accountability, and performance reporting

Abstract

Purpose

The purpose of this paper is to contribute to the theory and applications in social business and accountability.

Design/methodology/approach

The paper develops the theoretical arguments, shows the importance of non‐accounting measures, explores available non‐accounting measures and suggests BSC as an externally validated reporting tool.

Findings

There is a need to expand the accounting base to non‐financial measures; social business and social enterprises do not have externally validated performance reports and there is no benchmark data to compare performance.

Research limitations/implications

This is a conceptual and theoretical study. It needs empirical validation.

Practical implications

Using the suggested measurement and reporting will make public accountability transparent and expand the accountant's social role. It will motivate teaching of social business in accounting.

Social implications

The study supports social business as a legitimate entity; corporations engaged in social business will be more publicly responsible; the study will encourage investment in social business; small entrepreneurs from the bottom of the society will have an opportunity to participate in the economy; and the poor will participate in the economy, will expand the economy and contribute to social and economic development.

Originality/value

The paper includes guidelines for implementing the proposed BSC, performance measurements and reporting techniques.

Citation

Rahman, M. and Hussain, M. (2012), "Social business, accountability, and performance reporting", Humanomics, Vol. 28 No. 2, pp. 118-132. https://doi.org/10.1108/08288661211228889