CORPORATE ACCOUNTABILITY: A PROPOSED FRAMEWORK FOR ECONOMIC, SOCIAL AND ENVIRONMENTAL INCLUSIVENESS

Abstract

For several decades companies engaged in production have caused various threats to the society and environment in which they operate. These companies should be responsible for the consequences of their operations such as dumping toxic wastes in the water ways, air pollution, and destruction of soil and disturbing the social environment. There is an expectation by the public for companies to act in a socially responsible way through provision of health and safety of workers, protecting the environment and avoiding child labor. This has raised concern in the area of accounting as to how it can be measured statistically and included in the financial statement for stakeholder recognition. This study is a theoretical approach in explaining the present state of the concern of management of companies, shareholders and the international communities at large. After a theoretical and empirical review the study concludes that up-till date companies are not compelled by authorities to report their impacts on the society and finally the study recommends that Social and environmental disclosures by corporations should be made compulsory by international standard setting bodies and also, Environmental Audits and assurance services should also be mandatory by all companies.