Whilst we have centuries of experience of financial accounting with the result that methods and standards are well established and widely understood, the science of social accounting is young.
Traidcraft can claim to be one of the pioneers of social accounting in the UK, having published its first independently audited report in 1993.
Since that time, the methodological approach which Traidcraft developed with New Economics Foundation has been adopted and adapted by many larger organisations.
Independently audited social accounts are now published by a number of large corporations in the UK including: Shell International, BP-Amoco, British Telecom, The Co-operative Bank, The Body Shop, and United Utilities.
Traidcraft's social accounts are based on the following step by step approach:
- Define social objectives and ethical values of the organisation
- Be clear about who are the stakeholders of the organisation
- Establish indicators by which performance against the objectives and values can be measured
- Measure performance against the indicators
- Gain the views of stakeholders about how they view the performance of the organisation
- Report all of the above in as balanced a manner as possible
- Submit the report to independent audit
- Publish the report
- Gain feedback from stakeholders on the report’s findings
Traidcraft and its auditors have agreed to follow The Institute for Social and Ethical AccountAbility's AA1000 standard and apply it to these accounts.
For more information on standards
