Social and demographic issues
What is corporate social responsibility (CSR) and its importance?
Corporate social responsibility (CSR) refers to a business's commitment to operating in an ethical and sustainable manner, taking responsibility for its impact on society, the environment, and stakeholders. It is important for businesses as it enhances reputation, builds trust, attracts customers, motivates employees, and contributes to long-term success.
How do businesses address accounting practices related to CSR?
Businesses address accounting practices related to Corporate Social Responsibility (CSR) by adopting sustainability accounting frameworks, measuring and reporting on environmental and social impacts, incorporating non-financial performance indicators, disclosing CSR initiatives in financial statements, and aligning accounting practices with recognized standards and guidelines such as the Global Reporting Initiative (GRI) or Integrated Reporting Framework. This helps businesses demonstrate their commitment to CSR, enhance transparency, and provide stakeholders with a comprehensive view of their environmental, social, and financial performance.