Law N Arts

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT
SOCIAL RESPONSIBILITY
ACCOUNTING
1.1 INTRODUCTION
Accounting information is essentially financial information, the
concept of money measurement results in the limitation of
recording only those transactions in the books of accounting that
is capable of being measured in terms of money. Accounting
reports are therefore limited to phenomena that can be described
in monetary terms. As a result, many factors important to
business organization which cannot be translated into monetary
terms go unrecorded.
A business organization is also a social unit. It uses the societys
resources and produces goods and services for which the society
is the ultimate consumer. The business provides employment for
sizeable section of the society makers in various forms. Thus, it is
only in a developed society a business organization would
succeed. The development of the society and business are coextensive since the business draws the benefit from the society it
has a responsibility towards it.
An increasing awareness in our society in recent times is that
business
managers
consequential
are
society
made
and
increasingly
environmental
responsible
impact.
for
Changing
environments and social parameters have compelled them to

revalue their social as well as economic obligations towards the
needs of society since society provides the requisite working
MLA ACADEMY OF HIGHER LEARNING
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infrastructure and facilities. This has made the enterprise to

account and report also the needs of society. Hence the
organization has to present the accounting statements which will
reflect the social and economic benefits created by it as well as
the costs incurred with which to appraise its contribution towards
solving the problems of society.
Social accounting began developing in the U.K. in the early 1970s,
when the public interest Research group established Social Audit
Ltd. This organization carried out, and published, investigations
into the operations of large public companies, without necessarily
gaining their permission or cooperation, whilst lending support to
consumer pressure, there is an argument that this had a negative
on accountability, as organizations sought to ensure that sensitive
information was hidden from such investigations.
Globalization
has
brought
with
it
wide
realization
that
companies do not operate in isolation, but can have marked

impacts on the environment and people at local, national, and
global levels. This has led to an increasing awareness of CSR, and
the triple bottom-line of business success and measuring the
business not only in financial performance, but by its social and
environmental impact as well. Third craft and the new economic
foundation pioneered a form of social accounting in early 1990s
that in voluntary in nature and rooted in engagement with stake
holders. This can assist organization, both commercial and NGOs,
in understanding and improving their social impact.
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Social accounting is a way of demonstrating the extent to which

an organization is meeting its stated social or ethical goals. Whilst
independently verified, the organization itself owns the process of
data collection and analysis and the process is driven by
indicators the organization sets in consultation with stakeholders,
as opposed to being on standards or criteria determined
extremely. This is balanced by the principle of benchmarking,
which
whilst
still
developing,
should
enable
organizational
comparisons where possible.

Technically, the terms social accounting or social audit
refer to specific parts of a process now bestowed with the much
more unwieldy title of social and Ethical Accounting, auditing and
Reporting (SEAAR). In practice, the shorter titles tend to be used
interchangeably to refer to the entire process. Whichever title is
used, the process should involve all three steps:
Internal data collection and analysis procedures (accounting)
An independently audit of the results (auditing)
A mechanism for disseminating the outcomes more widely
(reporting)
Modern financial tests postulate that the objective of the firm is to
maximize its market value. Acceptance of this single objective
should lead managers to maximize the anticipated level of net
operation cash flows and minimize the perceived level of risk
associated with those cash flows.
The value of the firm is its discounted anticipated net operational
cash flows. The single financial objective of maximization of the
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market value of the firm has not been universally accepted. Even
a cursory glance at the convention profits and loss accounting
suggested the companies responsibilities to various interest
groups.
It can be interpreted as suggesting that corporate managers have
responsibilities towards consumers, managers of international
payments, suppliers, and employees including mangers, local
communities, and mangers of government finances as well as
shareholders and provides of loan capital.
Social Accounting and its reporting is becoming essential
on account of the following:
Increasing awareness of society about the corporate social
contribution.
Providing means of identifying and rewarding business for
social contribution.
Identifying adverse effects on the environment.
Improving credibility and reputation of business.
Transferring cost of social activities to other segments of
society.
While designing the contents to be included in social accounting,
it should be taken care of to see that it does not conflict with the
shareholders interest.
The business enterprise is an integral part of the functioning of
our nation. As such, in return for the privileges and rights granted
to it by the state, increasingly the enterprise is being expected to
assume responsibility towards the society in which operates.
Business firms themselves have changed, and at the same time
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have become so massive that they exercise important influences

on the communities in which they exist, often they exercise
strongly influence the laws to which they are required to conform.
The entire private sector has become all mixed up with the public
sector. There is ample evidence that corporate managements are
recognizing the importance of their actions on the social wellbeing
and increasingly are reporting this aspect of their operations in
annual reports.
1.2
NATURE OF SOCIAL ACCOUNTING
Social accounting :
Social accounting is also called by other names such as social
responsibility
accounting,
social
audit,
socioeconomic
accounting, social reporting Social accounting tries to measure

the effect of welfare activities on the society and the enterprise
itself for qualitative as well as quantitative terms.
Social accounting is defined by Richard Dobbins and David
Fanning a The Measuring and reporting of information concerning
the impact of entity and its activities and society.
Social Cost :
Social Cost is a sacrifice or detriment to society. Whether
economic, internal or external, social cost are sacrifices of the
society for which the business firm is responsible like air pollution,
water pollution, deficiency due to bankruptcy, depletion and
destruction of animals resources, soil erosion, deforestation,
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impairment of human factor of production, monopoly and social

losses,
production
of
dangerous
products
and
explosives,
deterioration in the law and order conditions in the industrial

estates etc.
Social Benefit :
Social benefit is a compensation made to the society in the form
of increase in per capita income, employment opportunities, etc.
Social Value :
Social Value denotes quantified social worth or utility. The value
of any resource depends on the existence of some social welfare
function quantifiable as a worth is a social value.
Social profit :
Social profit may be defined as the excess of social benefits
received by the society from a business firm over the social costs
borne by the society attributable to the same firm.
Social reporting :
Social reporting encompasses reporting on those activities of the
organization that have an impact on the society at large but are
not necessarily represented by its traditional financial report.
Social Audit :
The concept of Social Audit is a new dimension in auditing.
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According to Kohlers Dictionary for Accountants, social audit

is
an
examination
of
business
performance
and
consequences of its super legal public interest, non-profit

activities. Such activities have been held to include
financial
contributors
and
personnel
loans
to
public
enterprise, creation of scholarships, technical training

programmes shared with non-employees, memberships on
civic committees and boards and participations in affairs
devoted to public interest.
A review of the social responsibilities of these enterprises and also
costs and benefits caused to the public is called social Audit. The
social audit is a systematic evaluation of an organizations social
performance as distinguished from its economic performance. The
social audit is a tool by which an attempt is made to measure
positive or negative contribution of a business to the society.
To implement a social programme successfully, a company
must be organizationally geared to the effort. It must arrange to
set into motion corporate machinery to:
Evaluate,
quantitatively
where
possible,
the
social
improvement in which it functions.

Establish and improve social objectives
Make resource allocation in response to identified social
benefits.
1.3 OBJECTIVES OF SOCIAL ACCOUNTING
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The main objectives of social accounting are to help society by

providing different facilities by enterprise and to record them.
They are:
Effective utilization of natural resources: Main objectives
of making social accounting is to determine whether company
is properly utilize their natural resources or not.
Help to employees: Company can help employees by
providing the facility of education to children of employees,
providing transport free of cost and also providing good
working environment conditions.
Help to society: Because companies' factories spread the
pollution in natural society which is very harmful for society.
So, enterprise can help to society by planting the trees,
establishing new parks near factory area. And also opening
new hospitals
Help to customers: In social accounting this is the part of
benefits given by company to society, if company provides
goods to customers at lower rate and with high quality.
Help to investors: Company can help to investors by
providing transparent accounting information to investors.
1.4
IMPORTANCE
&
SIGNIFICANT
FEATURES
OF
SOCIAL ACCOUNTING
1. Social accounting is not impact assessment
Social accounting, thought the AA1000 process standards,

provides
comprehensive
and
systematic
framework
for
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accounting, auditing, and reporting against an organizations

social objectives. The discipline of social accounting encourages
any organization to take impact assessment more seriously. It
encourages management information systems to be developed
and embedded in the organization to provide ongoing monitoring
and learning from programme activities.
2. Social Accounting uses participatory methods
Social accounting provides an ideal way to combine participatory

methods of indicator setting with ongoing qualitative data
collection. The emphasis on identifying and engaging with key
stakeholders lends itself well to the use of impact assessment
methodologies such as Participatory Rural Appraisal(PRA) and
Participatory Learning and Action(PLA). If a SEAAR mythology is to
be employed as a framework for impact assessment, then it
becomes incumbent on those designing an intervention to do so
in the light of stakeholder dialogue, so that the criteria for
assessment are set through stakeholder consultation, rather than
being donor driven.
3.Social Accounting seeks to embed M&E

Development
organization
of
social
involves
accounting
commitment
processes
to
ongoing
within
an
stakeholder
dialogue, and the development of a management information

system based on indicators of social impact. Impact assessment
of enterprise development projects often bemoan the lack of a
systematic embedded M&E system, which hampers efforts to
provide and use meaningful impact assessment information. The
AA1000
focus
on
embedding
systems
is
therefore
useful
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(especially with the addition of a full module on this topic to be

added in the newAA1000 Series).
The experience of Tradecraft is that iterations of the social audit
process have led to a shift in focus from a need to prove our
achievements, towards a desire to improve them, using learning
gaining from the exercise as a key driver.
4. Scope of engagement
It
is
important
to
note
that
social
accounting
has
an
organizational, rather than project level scope. Thus stakeholders

judge an organization on their overall perception rather than a
narrow view of project success or failure. However, one of the
level at which stakeholder dialogue can be carried out by the
organization. Enterprise development activities typically involve
chains of interrelated interventions. It is unreasonable to expect
parties that do not have a direct relationship with the organization
to be involved in making a regular assessment of how it has
performed against social indicators.
5. Transparency
Fundamental to social accounting is the concept of accountability,
aided through increased transparency. Few of the established
methods of evaluating project or programme success include
transparency of results as a primary concern, social accounting
adds a level of accountability to what are sometimes perceived as
unaccountable NGOs. They are those who now suggest that social
accounting
offers
an
interesting
way
of
bringing
wider
accountability to donor funded or NGO led projects in the

enterprise sector.
6. Compliance or improvement
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One of the most positive features of social accounting is that it

encourages change within the organization. Earlier concepts of
social
audit
involved
an
external
organization
making
an
assessment of social performance and providing a report on the

company. This method did not tend to change the way businesses
operated in the way that self-directed assessments are carried out
in the same way imposed externally lending to limited
ownership of the results by the organization assessed. Social
accounting tends to foster an improvement rather than a
compliance-based mentality to impact assessment and so should
lead to ownership and ongoing improvement in the organization.
1.5
BENEFITS
OF
SOCIAL
ACCOUNTING
AND
REPORTING
Several benefits of social accounting and reporting by an

organization are as follows:
Presentation of a complete picture to the society and the
management to enable everybody to form correct opinions
Assist management in formulating appropriate policies and
priorities
Avoidance of adverse publicity.
Improvement of image leading to greater support from Govt.
and public.
Help in marketing and greater support
Evidence of social commitment.
Improved employee motivation.
Better business with all concerned e.g., banks, Insurance and
Government etc.
Resolution of social problems can assist in long-term growth of
the organization.
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Attracting and retaining high quality of staff

Obtaining feedback from the public as to the changes required
in the focus.
Improved confidence of shareholders or members.
Meeting information needs of consumer and society.
Several companies are realizing that being a socially responsible
organization can be good for productivity, morale, and loyalty
amongst employees. In addition to the benefits derived by the
individual organization, various other interested parties like Govt.
agencies, consumer councils, Shareholders associations, Trade
associations, News media, etc., also benefit because of the ready
availability of the information.
1.6 MAJOR AREAS OF SOCIAL PERFORMANCE

The Canadian National Association of Accountants has advanced
the most useful categorization of the variable present in social
accounting measurement. Societal concerns are divided into the
following four major components.
Community involvement
Human resource stewardship
Physical resources and environmental stewardship
Product or service contribution
Community involvement includes those socially oriented
activities, which tend primarily to the general public, e.g.
philanthropic
programs,
community
involvement
by
employees, corporate community services.

Human resource stewardship covers activities directed to
the wellbeing of employees, e.g., hiring practices, pension and
retirement benefits, working conditions, training and promotion
policies, job enrichment and satisfaction.
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Physical resources and Environment stewardshipincludes

protection of the environment.
Products or Services Contribution of a social nature deal
with the impact of the companys products and services on
society and its relations with consumers, e.g. product quality
and innovation, advertisement and packing, product safety,
guarantees
and
warranties,
customers
satisfaction
and
consumerism.
1.7 CHECKLIST OF ITEMS OF SOCIAL REPORTING

The checklist of under each of these four major headings
identifies typical example of social performance. The list is neither
all-inclusive nor ranked by importance, but it serves as a
beginning framework for social reporting by providing divisions,
which are reasonably clear and logical.
Corporate social performance is measured through social cost
analysis, as there are no established standards for measuring,
reporting
and
evaluating
social
performance.
The
various
checklists of items of Social Reporting are listed below in a table
Page 13
TABLE-1.1
TABLE SHOWING VARIOUS CHECKLIST ITEMS OF
SOCIAL REPORTING
Community Involvement
1.General philanthropy
Human Resource Stewardship

1.Employment practices
2.Transportation
2.Training programmers
3.Health service
3.Promotion policies
4.Aid
in
personal
business problems
5.community
5.Remuneration and recruitment
planning
improvement
6.Volunteer
and 4.Employment conditions

& benefits
6. Working conditions
community 7.Health and safety
activities
8.Job satisfaction
7.Housing
9.Communications
8.Specialised
food
and
and participation
welfare programmers
9.Education
Physical Resources
and Product
or
Service
Stewardship
1.Air
Environmental contributions
1.Labeling and packaging
2.Water
2.Marketing representations and
3.Sound
product claims
4.Waste creation and disposal 3.Guarantee
and
conservation
positions
5.Scarce resource usage
4.Consumer education
warranty
6.Aesthetic consideration of 5.Product safety

presence
6.Constructive
research
and
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development
7.Advertisement and promotion
1.8 MAJOR SOCIO-ECONOMIC PROBLEMS
The following heads are identified considering the major socio

economic problems for social reporting purpose.
1 .Energy conservation
2 .Industrial safety
3. Quality assurance
4. Consumer protection
5. Welfare work of weaker sections of the society
6. Information regarding imports and exports
7. Import substitution
8. Improvement of productivity
9. Research and development
10. Employment of minorities
11. Contribution to government exchequer
12. Environmental control
13. Social projects
14. foreign exchange transactions
15. Employment opportunities
16. National interest donations
17. Employees participants in management and welfare measures
18. Family planning and welfare programmes
19. Development of ancillary and small scale industries
1.9 SOCIAL REPORTING STATEMENTS

The below mentioned table shows the format and constituents
of a simple Social accounting statement, based on the
conventional profit and loss or income statement.
TABLE-1.2
TABLE SHOWING SOCIAL REPORTING FORMAT
PARTICULARS
AMOUNT
Social benefits
Products and services provided
XXX
payment to other elements
XXX
of society:
XXX
Wages and salaries
AMOUNT
XXX
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Payment to suppliers
Taxes and rates, etc.,
Dividend and interest
Additional employee benefits
Donations to the community
Environmental improvements
Ancillary benefits
Total
social
benefits
(a)
Social costs:
Goods and materials acquired
Fixed asset purchase
Labour and service used
Public service and facilities use
Payment
from
other
elements of society
Customers
Investors
Lendors
Work-relate injuries or illnesses
Discrimination and disadvantage
Environmental damage
Other costs
Total
social
costs
(b)
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Categories of social benefits

Taking the services provided (the present value of the entitys
output together with the value of facilities or services provided to
other elements of the society.
Payments to other elements of society.
Donations to the community(both money sums, whether by direct
gifts or sponsorship, and gifts in kind)
Environmental improvements (landscaping gravel pit, or providing
a company bus services).
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Ancillary
benefits(factory
crches
or
public
education
programmes)
Categories of social cost
Goods and material s acquired

Fixed assets purchases
Labour and services used
Public service and facilities used (the entity`s share of the cost of
the police and fire services, of the use of roads, parks, sewers and
so on
Payment
from
other
elements
of
the
society(customers,investors,lenders)
Work-related injuries and illness(the present value of lost income)
Discrimination and disadvantages
Environmental damage
Other costs(product short coming or undesirable attitude
formation)
1.10
SOCIAL REPORTING MODELS
The following social reporting models are developed by social

researchers:
Abtsmodel, which is widely accepted specially discussed social
reporting. This approach has been developed and used by Abt
associates in the united states which emphasizes here has been
on qualifying the value contributed to the society (assets) and
detriments caused to the society(liabilities) and to arrange them
in a fashion comparable to the typical financial balance sheet.
This is also known as cost benefit analysis approach. This model
further suggests that it is like ordinary commercial audit which
contain Social operating Statement which inputs (cost) and
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outputs(benefits) with debit side and credit side respectively. This

input and output must be measured in monetary terms.
The Social Income Statement provides monetary qualification of
the firm`s social benefits as sources generated by the company`s
operations, having a positive impact or increasing a society`s
resources. The social costs are resource used in the companys
operations at a cost sacrifice or determined to the society. The
net social income is the social gain or loss to the societys
resources due to the firms operations. The model further stressed
on the preparation of Social Income Statement and Social balance
sheet because it includes social impact in the community and the
general public.
Professor I S. Perwal and Narendra Sharma have suggested
preparing a social report consisting of social responsibility
statement
of
social
income
and
expenditure.
The
social
responsibility statement could present the state of capital

expenditure on socially beneficial activities, like installations of
effluent treatment plans, plan for recycling of waste products,
dust absorbing plat, community housing, provision for school
buildings, etc. the statement of income and expenditure, on the
other hand, could the recurring income accruing from the capital
expenditures, expenses incurred for upkeep of services and
otherexpenses incurred for the benefit of the society, employees
and other beneficiaries.
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In Social-economic operating statement approach, the assumption

that a firm gives something to the society and uses something of
society and this interaction be presented in a statement format
which is called the socio-economic operating statement (SEOS).
According to this approach, the firm presents the positive and
negative aspects of its social activities. The positive aspects are
termed as social benefits and negative aspects social costs. The
net social contribution of a firm is represented but the difference
between social benefits and social costs. This approach suggests
that a firm should prepare a social statement periodically showing
the expenditure made for improvement in social areas, offset the
cost of programmes which were not undertaken nut which would
have resulted in improvements.
1.11
LIMITATIONS OF SOCIAL REPORTING
Social responsibility accounting has been developed in response

to the government and public's pressure on large corporations to
be more transparent and conscious about the impact of their
activities on the environment and society. As this is not a
traditional accounting system, the implementation process can be
quite difficult and cumbersome for some organizations.
Cost and Workload: The implementation cost of social
responsibility accounting is high. It requires a high labour
workload,
especially
implementation.
Early
at
the
planning
initial
and
stage
of
its
troubleshooting
strategies have to be organized, which could incur massive
Page 19
time and cost to the business. The management has to

implement
long-term,
strategic
planning
so
that
the
accounting system meets the organization's profitability

objectives while also minimizing the social impact of its
activities. Risk awareness as a result of the implementation
has to be taken into consideration and monitored.
Business Objective: In contrast to public services which
operate to serve the public needs, most private businesses
aim to maximize profit and shareholders' wealth. The nature
of their activities may make it difficult to implement the
social
responsibility
accounting
system.
For
example,
although a company's policy and procedures on disposal of

chemical waste is in accordance to the rules and regulation,
it
may
not
be
sufficient
to
achieve
the
target
of
accommodating environmental and social needs.

Staff Morale: The implementation process, which requires
heavy workload, may deteriorate the staff morale. Having to
work extra hours and additional workload at the same pay
rate can cause employees to seek employment somewhere
else. As a result, the business will incur high labor turnover
and more cost by needing to recruit and possibly train new
staff.
Resources: Unlike a traditional accounting system, which
concerns figures, the social responsibility accounting is
developed
to
ensure
business'
activities
fit
the
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environment and society surrounding it. Resources, such as

social cost- benefit analysis and information on pollution
impact and destruction of animal resources form part of the
implementation process. An organization that wishes to
implement this system may face a shortage of resources and
therefore may be discouraged to proceed.
Not mandatory: Disclosure of information is not mandatory
for private sector units. In the case of public sector units also
order for social overheads schedule does not at all funds the
requirements of social audit.
No
standard
format:
There
are
no
well-established
concepts, conventions, postulates and axioms to guide the

Social Accountant in drafting his accounts and reporting.
1.12 CORPORATE SOCIAL RESPONSIBILITY

Ernst and Ernst (1978) identified six areas in which corporate
social objectives may be found:
1.
2.
3.
4.
5.
6.
Environment
Energy
Fair business practices
Human resources
Community involvement
Product
1. Environment: This area involves the environmental aspects

of production, covering pollution control in the conduct of
business operations, prevention or repair of damage to the
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environment resulting from processing of natural resources

and the conservation of natural resources.
Corporate social objectives are to be found in the abatement
of the negative external social effects of industrial production,
and in adopting more efficient technologies to minimize the
use of irreplaceable resources and the production of waste.
2. Energy: This area covers conservation of the energy in the
conduct of business operation and increasing the energy
efficiency of the companys products.
3. Fair business practices: This area concerns the relationship
of the company to special interest groups. In particular it deals
with:
Employment of minorities
Advancement of minorities
Employment of women
Advancement of women
Employment of other special interest group
Support for minority businesses
Socially responsible practices abroad
4. Human resources: This area concerns with the impact of
organization activities on the people who constitute the

human resources of the organization. These activities include:
a) Recruitment practices
b) training programmers
c) experience binding job rotation
d) job enrichment
e) wage and salary levels
f) fringe benefits plans
g) congruence of employee and organization
h) mutual trust and confidence
i) Job security, stability of workforce, layoff and
recall practices.
j) Transfer and promotion policies
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k) Occupational health
5. Community involvement: This area involves community
activities, health-related activism education and arts and other
community disclosures.
6. Products: This area concerns the quantitative aspects of the
products, for e.g. their utility, life durability, safety and
serviceability as well as their effect on pollution. Moreover, it
includes
customer
satisfaction,
truthfulness
in
advertising
completeness from a marketing point of view. It is clear,

however, that the social responsibility aspect of the product
contribution extends beyond what is advantageous from a
marketing angle.
1.13
APPROACHES
TO
CORPORATE
SOCIAL
RESPONSIBILITY
The concept of social responsibility introduces new dimensions
and new problems. First, there is as yet no generally accepted
concept of the social responsibility of business enterprises.
Almost everyone agrees that they should be socially responsible,
though it may be argued that such a view is merely an extension
of the universally accepted doctrine that individuals, either
single or in groups, should weigh the impact of their actions on
others. Three approaches to the concept of corporate social
responsibility may be distinguished:
(a) The first approach originates in classical economic theory as
expressed in the hypothesis that the firm has one and only one
objective, which is to maximize income. By extension, the
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objective of a corporation should be to maximize shareholders'

wealth. It is asserted that in striving to attain this objective
within the constraint of the existing legal and ethical framework,
business corporations are acting in the best interests of society
at large. This classical interpretation of the concept of corporate
social responsibility has been advocated by Milton friedman
(2012) in the following terms:
There is one and only one social responsibility of business-to use
its resources and engage in activities designed to increase its
profit, as long as it stays within the rules of the game, which is to
say, engages in open and free competition, without deception or
fraud. . Few trends could so thoroughly undermine the very
foundations of our free society as the acceptance by corporate
officials of a social responsibility other than to make as much
money
(b)
for
The
second
their
shareholders
approach
developed
as
in
the
possible'.
2000s,
and
recognizes the significance of social objectives in relation to the

maximization of income. In this view, corporate managers should
make decisions which maintain an equitable balance between
the claims of shareholders, employees, customers, suppliers and
the general public. The corporation represents therefore, a
coalition of interests, and the proper consideration of the various
interests of this coalition is the only way to ensure that the
corporation
will
attain
its
long-term
income
maximization
objective.
Page 24
(c) The third view regards income as a means to an end; and not
as an end in itself. In this view, 'the chief executive of a large
corporation has the problem of reconciling the demands of
employees
for
more
wages
and
improved
benefit
plans,
customers for lower prices and greater values, shareholders for

higher dividends and greater capital appreciation-all within a
framework that will be constructive and acceptable to society'.
(Committee for Economic Development, 2001.) Accordingly,
organizational decisions should be concerned with the selection
of socially responsible alternatives. Instead of seeking to
maximize income generally, the end result should be a
satisfactory level of income which is compatible with the
attainment of a range of social goals.
The change from the second to the third approach to social
responsibility is characterized as a move from a concept of the
business corporation based on shareholders' interests to one
which extends the definition of 'stakeholder'. The former concept
views the business enterprise as being concerned with making
profits for its shareholders, and treats the claims of other
interested groups, such as customers, employees and the
community, as constraints on this objective. The latter concept
acknowledges that the business enterprise has a responsibility to
all stakeholders, that is, those who stand to gain or lose as a
result of the firm's activities.
1.14 ENVIRONMENTAL ACCOUNTING
Page 25
Environment is defined as The sumtotal of all surroundings of

a living organism, including natural forces and other living things,
which provideconditions for development and growth as well as of
danger and damage.
Environmental accounting, as defined in these guidelines, aims at
achieving sustainable development, maintaining a favourable
relationship with the community, and pursuing effective and
efficient environmental conservation activities. These accounting
procedures allow a company to identify the cost of environmental
conservation during the normal course of business, identify
benefit gained from such activities, provide the best possible
means of quantitative measurement (in monetary value or
physical units) and support the communication of its results.
Forms of Environmental Accounting

a. Environmental Management Accounting (EMA)
In EMA there is a particular focus on material and energy balance
aspects
and
environmental
cost information.
This
type of
accounting is further classified into:
Segment Environmental Accounting: This is an internal

environmental accounting tool to select an investment activity,
or a project, related to environmental conservation from among
all processes of operations, and to evaluate environmental
effects for a specified period.
Page 26
Eco Balance Environmental Accounting: This is an internal

environmental accounting tool to support PDCA for sustainable
environmental management activities.
Corporate Environmental Accounting: This is a tool to inform

the public of relevant information compiled in accordance with
the Environmental Accounting. This could be referred to as
Corporate Environmental Reporting. For this purpose the cost
and
effect
(in
quantity
and
monetary
value)
of
its
environmental conservation activities are used.
b. Environmental Financial Accounting (EFA):

Environmental Financial accounting concentrates on reporting
environmental liability costs and other significant environmental
costs.
c. Environmental National Accounting (ENA):

In national level accounting the particular focus is on natural
resources stocks & flows, environmental costs & externality costs,
etc.
ISSUES IN ENVIRONMENTAL ACCOUNTING

In particular the accounting literature has recently devoted more
space to two issues:
Environmental reporting
Environmental audit
Page 27
Environmental reporting
Environmental reporting can be defined as Public disclosure by a
firm of its environmental performance information, similar to the
publication of its financial performance information.
An environment report would show:

The resources used by the company
The pollution and other effects, of the company on the
environment
The
environment
resources
used
by
business
can
be
categorized as water, energy, raw materials and hazardous

chemicals. The quantities of the resources used should be
disclosed. The second part of the report would measure a
companys pollution of the environment in the form of the effect
on water, industrial and hazardous waste, noise and land. The
effects of the outputs are rarely measured and are never
expressed in monetary terms. Furthermore, disclosures by entities
refer only to the impact of their activities on the environment. It is
argued that requiring companies to report publicly both the
positive
and
negative
impact
of
their
operations
of
the
environment and wider community will argue them to improve

their social responsibilities.
Environmental audit
As
green consciousness grows and develops, more companies
are beginning to evaluate both its commercial implications and
Page 28
the impact of their operations. The environment audit is

essentially a management tool. It implies that companies should
not wait for restrictive legislation to being out change.
The environmental audit comprises the following stages
Existing legislative requirements, health and safety practices and
forthcoming regulatory developments are analyzed
Internal procedures and external requirements are examined,
compared
and
requirements
contrasted.
on
production
The
implications
processes
and
of
external
equipment
are
assessed and the impact in terms of waste and emission are

evaluated.
The organizational structure, administrative and communication
process of the company are analyzed to determine the extent up
to top management is informed of environmental impact of the
companys activities. Gaps are identified and remedies suggested.
1.15 FOUNDATION STANDARD

AccountAbility's AA1000 series
standards
to
help
are
organizations
principles-based
become
more
accountable, responsible and sustainable. They address

issues
affecting
governance,
business
models
and
organizational strategy, as well as providing operational

guidance on sustainability assurance and stakeholder
engagement. The AA1000 standards are designed for the
integrated thinking required by the low carbon and green
economy,
and
support
integrated
reporting
and
assurance.
Organizational learning and improvement is seen as central to the
approach as is the link between organizational accountability and
Page 29
developing trust with stakeholders. As a process standard, rather

than performance standard, AA1000 specifies the processes that
an organization should follow to account for its performance, not
the levels of performance the organization should achieve.
OUTLINE
SUMMARY
OF
ACCOUNTABILITY
1000
(AA1000)
The principles of AA1000 are summed-up in Chart-1 below. These
identify the characteristics of a quality process. The governing
principle of accountability is addressed by inclusively within the
process, reflecting all organizational stakeholder groups. The
principles that support accountability and inclusively within the
process is divided into the three groups of the scope and nature of
the
process;
the
meaningfulness
of
information;
and
the
management of the process on an ongoing basis.
CHART-1.1
CHART SHOWING PRINCIPLES OF AA1000
Page 30
Accountability
Inclusively
Scope and
nature of
process
Complete
ness
Meaningfulness
of information
Materiality
Regularity
/
Timeliness
Informatio
n quality
Quality
assurance
Management of
ongoing
process
Accessibili
ty
embedded
ness
Continuou
s
improvem
ent
The process model of AA1000 aims at continuous improvement

through iterations over time. It can be summarized as figure 2,
below. The planning phase involves defining and reviewing
organizational
values, objectives and
targets as well as
recognizing the different stakeholder groups of the organization.

Having then defined the scope of the process, the accounting
targets. This is accompanied by the development of plans for
improvement and the revision of relevant targets.
A report of the information gathered is prepared and
externally audited, before being disseminated to stakeholders.
Central to all phases is an ongoing engagement with stakeholders
Page 31
around what is to be measured and the capturing of stakeholder

voice to be included in the report.
Over time, support structures and systems are developed in order
to embed the process into the organization`s activated. Within
this model, a set of twelve steps are identified that should be
taken in order to satisfy the AA1000 quality principles and a set of
guidance notes assist in their interpretation.
1.16
FORMAT
OF
SOCIAL
RESPONSIBILITY
ACCOUNTING
TABLE-1.3
TABLE SHOWING PROFORMA OF SOCIAL
RESPONSIBILITY ACCOUNTING
SL.N PARTICULARS
O
AMOU
NT
Page 32
Social benefits and cost of staff

A. A)Social benefits and cost of staff
1.Medical and Hospital facilities
2.Education facilities
3.Canteen facilities
4.Recreation,
entertainment
and
cultural
activities
5.Housing and township facilities
6.Water supply, concessional electricity &
transport
7.Training and career development
8.Provident fund, gratuity, bonus, insurance
benefits
9.Other benefits
Total benefits to staff
B) Social costs of staff
1.Lay off and involuntary termination
2.Extra hours put in by officers voluntarily
Total cost to staff
Net social Income to Staff
I(A-B)
II
Social benefits and Costs to community

A. A)Social benefits to community:
1.Local taxes paid to panchayat/municipality
1. 2.Environment improvements
2. 3.Generation of job potential
3. 4.Generation of business
Total social benefits to community
B. B)Social costs to community:
1.Increase in cost of living in the vicinity on the
account of any plants
Net social Income to community
II(A-B)
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Page 33
III
Social benefits and costs to general public

A)Social Benefits to General Public
1.Taxes,Duties,etc.
paid
to
the
State
Government
2.Taxes,Duties,etc.
paid
to
the
Central
Government
Total Social Benefits to General Public
B.S
B)Social Costs to General Public
1
1.State services consumed- Electricity services
2.
2.Central services consumed- telephone,
Telegrams, Postal services and Banking
Tot al Social Benefits to General Public
Net
Net Social Benefit to General
Public
III(A-B)
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Net Social Benefit to Staff, Community and

General Public(I+II+III)
XXX
INDUSTRY PROFILE
HISTORY OF SOLAR ENERGY
Ancient History of Solar Energy
Sun worship by ancient civilizations is evidence of the recognition
of the sun's central importance in sustaining life. Native NorthAmericans and South-American peoples worshipped the sun. So
did the Babylonians, ancient Hindus, Persians and Egyptians. The
Page 34
Easter bonfire and the Yule log at Christmas time are remnants of
European sun worship. In ancient Greece, the deities of the sun
were Helios and Apollo, with many temples devoted to them.
Ancient Greek interest in the sun transcended religious purposes.
They were the first to use passive solar design in their housing. As
early as 400 BC, entire Greek cities were built in this manner.
The Romans later improved on these designs and they were
the first to use glass for windows, thereby trapping solar warmth.
The Romans even stipulated by law that it was an offence to
obscure a neighbours access to sunlight. They were the first to
use glasshouses to create the right growing conditions for exotic
plants and seeds they brought to Rome from far-flung corners of
their empire
History of Solar Energy and Solar water Heater
In the year 1760, Horace de Saussure, a noted Swiss naturalist,
observed that, "It is a known fact that a room, a carriage is hotter
when the rays of the sun pass through glass. To determine the
effectiveness of trapping heat with glass covers, de Saussure built
a rectangular box out of half-inch pine, insulated the inside, and
had the top covered with glass, and had two smaller boxes placed
inside. When exposed to the sun, the bottom box heated to 228oF
(109oC) or 16oF (9oC) above the boiling point of water. De
Saussure was unsure of how the sun heated the glass boxes.
Today we can better explain what happened. Sunshine penetrated
the glass cover, the black inner lining absorbed the sunlight and
Page 35
converted it into heat. Though clear glass allows the rays of the
sun to easily enter through it, it prevents heat from doing the
same. As the glass trapped the solar heat in the box, it is heated
up. Its inventor realized that someday the hot box might have
important practical applications, as "it is quite small, inexpensive
and easy to make." Indeed, the hot box has become the prototype
for the solar collectors that have provided sun-heated water to
millions since 1982.
In the 19th century, no easy way existed to heat water. People
generally used a cook stove for this purpose. Wood had to be
chopped or heavy hods of coal lifted, then the fuel had to be
kindled and the fire periodically stocked. In cities, the wealthier
heated their water with gas manufactured from coal. Still, the fuel
didn't burn clean and the heater had to be lit each time someone
wanted to heat water. If someone forgot to extinguish the flame,
the tank would blow up. To add to the problem of heating water,
in many areas, wood or coal or coal-gas cost a lot and many times
could not be easily obtained. To circumvent these problems, many
handy farmers or prospectors or other outdoors men devised a
much safer, easier, and cheaper way to heat water - placing into
the sun a metal water tank painted black to absorb as much solar
energy as possible. These were the first solar water heaters on
record. The downside was that even on clear, hot days it usually
took from morning to early afternoon for the water to get hot. And
as soon as the sun went down, the tanks rapidly lost their heat as
they had no protection from the night air.
Page 36
Advertisement
for
the
The
Climax water
Solar-Water
Heater,
solar
heaters
were bare metal

the tanks
world's
first
painted
first black containing
commercial solar water and tilted

water
heater, to face the sun.
patented
in
1891.
The shortcomings of the bare tank solar water heaters came to
the attention of Clarence Kemp, who sold, in Baltimore, Maryland
(US), the latest home heating equipment. In 1891, Kemp patented
a way to combine the old practice of exposing metal tanks to the
sun with the scientific principle of the hot box, thereby increasing
the tanks' capability to collect and retain solar heat. He called his
new solar water heater the Climax - the world's first commercial
solar water heater. Kemp originally marketed his invention to
eastern gentlemen whose wives had gone off with their maids to
Page 37
summer at some resort, leaving their husbands to fend for

themselves. The solar water heater, Kemp advertised, would
simplify housekeeping duties for this class of men already
burdened by the absence of their wives and domestic staffs, and
unaccustomed to such work as lighting the gas furnace or stove
to heat water.
From the turn of the century to 1911, more than a dozen
inventors filed patents that improved upon the Climax. But none
changed the fact that the heating unit and the storage unit were
one and the same and both laid exposed to the weather and the
cold night air. Hence, water heated by the sun the previous night
never stayed hot enough to do the washing next morning or to
heat the bath. In 1909, William J. Bailey patented a solar water
heater that revolutionized the business. He separated the solar
water heater into two parts: a heating element exposed to the
sun and an insulated storage unit tucked away in the house so
families could have sun heated water day and night and early the
next morning. The heating element consisted of pipes attached to
a black-painted metal sheet placed in a glass-covered box.
Because the water to be heated was passed through narrow pipes
rather than being in a large tank, Bailey reduced the volume of
water exposed to the sun at any single moment and therefore,
the water heated up faster. Providing hot water for longer periods
put Bailey's solar hot water heater, called the Day and Night, at a
great advantage over the competition. Soon the Climax went out
of business. From 1909, when Bailey started up his business,
Page 38
through 1918, his company had sold more than 4,000 Day and
Night Solar Hot Water Heaters.
Workman installing solar water heater on the

roof of the laundry room in Florida in the
1930s. Like most housing in Florida, every
house in this tract used solar energy to heat
water.
As people had to rely on expensive imported coal or wood for fuel,

many found solar a cheaper alternative. The huge discoveries of
natural gas in the Los Angeles basin during the 1920s and 1930s
killed the local solar water heater industry. Rather than lose
money from the energy changes in the Southland, Bailey took the
innovations he had made in solar and applied them to develop the
thermostatically-controlled gas water. His Day and Night Gas
Water Heater made him his second fortune. He also sold the
patent rights of the Day and Night Solar Water Heater to a Florida
firm. A building boom in Florida during the 1920s had tripled, but
just as in California before the great oil strikes, people had to pay
a pretty penny to heat water. The high cost of energy combined
with the tropical climate and the great growth in housing stock
created a big business for those selling solar water heaters. By
1941, more than half the population heated their water with the
sun. Declining electric rates after World War II, in tandem with an
Page 39
aggressive campaign by Florida Power and Light to increase

electrical consumption by offering electric water heaters at
bargain prices, brought Florida's once flourishing solar water
heater industry to a halt.
Cylindrically
shaped
metal
water
tanks,
placed in glass-covered boxes, covered the

roofs of almost four million Japanese homes by 1969.
Unlike America during the post World War II years, the Japanese
lacked cheap and abundant energy to supply hot water on
demand. Rice farmers in particular yearned for a hot bath after
working long hours in the hot humid patties. But to heat water,
they had to burn rice straw, which they could have otherwise
used to feed their cattle or fertilize the earth. So when a Japanese
company began marketing simple solar water heater consisting of
a basin with its top covered by glass, more than 100,000 was in
use by the 1960s. People living in the towns and cities bought
Page 40
either a plastic solar water heater that resembled an inflated air

mattress with a clear plastic canopy or a more expensive but
longer lasting model that resembled the old Climax Solar Water
Heaters - cylindrically shaped metal water tanks placed in a glasscovered box. Close to 4,000,000 of these solar water heaters were
on roof tops by 1969.
The advent of huge oil tankers in the 1960s allowed the Japanese
access to new oil fields in the Middle East, supplying them with
cheap, abundant fuel. Similar to what had happened in California
and Florida, the solar water heater industry collapsed. But not for
long, the Oil Embargo of 1973 and the subsequent dramatic
increase in the price of petroleum revived the local solar water
heater industry. Annual sales of greater than 100,000 units
continued to hold steady from 1973 until the second oil shock of
1979. Sales then jumped to almost half a million that year and
leaped to nearly a million the following year. By this time, the
Japanese favoured solar water heaters closely resembling the
type introduced to California in 1909 by William J. Bailey with the
heating and storage units separated. As the price of oil began to
stabilize in 1985 and then drop sharply in subsequent years, so
did the sales of solar water heaters; still the Japanese purchase
around 250,000 units each year. Today, more than 10,000,000
Japanese households heat their water with the sun.
From the 1950s to the early 1970s, a few thousand Australians
relied on the sun to heat their water. The numbers grew
phenomenally as a consequence of two huge spikes in oil prices in
Page 41
1973 and 1979. Interestingly, purchasing of solar water heaters

during these heady years varied from state to state. While 40 to
50% of those living in Australia's Northern Territory heated water
with the sun, the percentage dropped to around 15% in Western
Australia and sunk to below 5% in the more populated eastern
states. The sharp difference had more to do with the cost of
electricity than the amount of sun available. People in the
Northern Territory and Western Australia bought electricity
generated by imported and increasingly costly petroleum while
those in the eastern states of New South Wales, Queensland and
Victoria had their electricity produced by locally mined and very
cheap coal. In the late 1980s, the Australian solar water heater
market began to stagnate. Pipelines bringing newly discovered
natural gas to previously fuel-short regions such as the Northern
Territory and Western Australia has prevented any growth in these
once fertile markets for solar water heaters. Exports now account
for more than 50% of the sales made by Sol hart, Australia's
leading manufacturer of solar water heaters.
Unlike the United States and much of Europe, Israel, like Japan,
found itself without sufficient fuel supplies in the early 1950s. The
power situation became so bleak in the early days of the Jewish
State that the government had to forbid heating water between
10 p.m. and 6 p.m. Despite mandatory domestic rationing of
electricity, power shortages worsened, causing pumping stations
to fail and threatening factory closures. A special committee
empanelled by the government could only suggest the purchase
Page 42
of more centralized generators to overcome the problem. This

conclusion raised the ire of Israeli engineer, Levi Yissar, who
complained, "How about an already existing energy source which
our country has plenty of - the sun. Surely we need to change
from electrical energy to solar energy, at least to heat our water."
Yissar put his money where his mouth was, becoming Israel's first
manufacturer of solar water heaters. By 1967 about one in twenty
households heated their water with the sun. But cheap oil coming
from Iran in the late 1960s as well from oil fields captured during
the Six Day War drastically reduced the price of electricity and the
number of people purchasing solar water heaters.
Israeli success in the Yom Kippur War brought on the infamous oil
boycott of 1973. The Israelis responded by mass purchasing of
solar water heaters. By 1983, 60% of the population heated water
with the sun. When the price of oil dropped in the mid 1980s, the
Israeli government did not want people backsliding in their energy
habits as has happened in the rest of the world. It therefore
required its people to heat their water with the sun. Today, more
than 90% of Israeli households own solar water heaters.
Page 43
CHAPTER-2
RESEARCH DESIGN
The first and foremost aspect in carrying research programme is
formulation and defining the problem. Identifying the various
alternatives of the courses and action is the next thing. Analyzing
the outcome of each and every alternative on the basis of cost
benefit analysis is the significant part of the research design.
Finding solutions to the problem is the trump card of any research
programme; accordingly the study identified the effectiveness of
Page 44
social
accounting
and
its
measurement
at
KREDL.
The
methodology of what, where, when, how and by whom of the

problem design are narrated in this chapter. The details are,
2.1 Title of the study

A Study on SOCIAL RESPONSIBILITY ACCOUNTING at
KARNATAKA
RENEWABLE
ENERGY
DEVELOPMENT
LIMITED.
2.2 Statement of the problem

In the modern and knowledge era, knowledge workers are to be
retained in the organization; it calls for effective motivation and
financial resources. It is true in all types of companies. The firm
draws inputs from the society, earns profit. It is necessary that the
company out of its revenue should spend a part to meet
corporate social performance. Meeting social obligations is the
social responsibility of the organization.
What kind of social activities are formulated and implemented
towards the workers, general public, commuters, downtrodden
people, environment protection, achievers in various fields by the
KREDL is the focus is the study.
The social activities performed by the corporation should be
accounted and measured. The cost incurred and benefits obtained
from these social responsibility activities will be considered and
Net benefits from these activities will be analyzed in this study.
2.3 Review of literature
Page 45
1. Paper title: Corporate social and environmental reporting: a

review of the literature and a longitudinal study of UK disclosure
Authors name: Rob Gray, Reza Kouhy, Simon Lavers(1995).
Its major theoretical preoccupations and empirical conclusions,
attempts to re-examine the theoretical tensions that exist
between classical political economy interpretations of social
disclosure and those from more bourgeois perspectives. Argues
that political economy, legitimacy theory and stakeholder theory
need
not
be
competitor
theories
but
may,
if
analysed
appropriately, be seen as alternative and mutually enriching

theories from alternative levels of resolution. Offers evidence from
13 years of social disclosure by UK companies and attempts to
interpret this from different levels of resolution. There is little
doubt that social disclosure practice has changed dramatically in
the period. The theoretical perspectives prove to offer different,
but mutually enhancing, interpretations of these phenomena.
2. Paper title: Corporate Social Responsibility and Firm Financial

Performance
Authors name: Jean B. McGuire, Alison Sundgren and Thomas
Schneeweis
Using Fortune magazine's ratings of corporate reputations, we
analyzed
the
relationships
between
perceptions
of
firms
corporate social responsibility and measures of their financial

performance. Results show that a firm's prior performance,
assessed by both stock-market returns and accounting-based
Page 46
measures,
is
more
closely
related
to
corporate
social
responsibility than is subsequent performance. Results also show

that measures of risk are more closely associated with social
responsibility than previous studies have suggested.
2.4 Scope of the study

This study covers organizations philosophy, policy, vision, and
mission statements, objectives, particularly the social objectives;
activities pertaining to social responsibility within and outside the
corporation, the benefits derived by the beneficiaries out of social
programmes, the officers in charge of the Social responsibility
activity at KREDL.
2.5 Basic assumption

Findings of the study are based on the assumption that company has
disclosed correct information.
2.6 Objectives of the study

1. To analyze cost benefit factor of social responsibility activities
of the organization.
2. To identify the different classes of social responsibility activities
undertaken by KREDL.
3. To consult the concerned authorities and in respect of social
responsibility activities in the corporation and to know about
social audit results.
4. To analyze the environmental
protection
activities
of
corporation.
5. To validate the data and to arrive at constructive suggestions.
Page 47
2.7 Limitations of the study
The study is confined to only KREDLtd .Since it cant be

generalized for all the companies.
Due to the limited time, in-depth study could not be made.
2.8 Methodology of Research

The Methodology consists of the following.
Type of research: This is a social research for education
purpose and type of research that is followed in this study is

descriptive research and analytical study.
Method of research: The method of research, which is
undertaken in this study, is scientific method.

Sample design: The trading accounts, profit and loss
account, Balance sheet, Auditors report cash flow statement

have been collected on a random technique.
Tools for gathering data: In this section, the tool used for
gathering data is financial statement interview schedules.
2.9 Sources of data

Primary data: In case of primary data, the data are
collected by interviewing managers.

Secondary data: In case of secondary data, the data is
collected from financial records of the company, Internet and
magazines.
Page 48
2.10 Plans of analysis

The data has been tabulated. Each data has been analyzed and
evaluated. The findings are recorded and conclusions are given
based on findings.
2.11 Software used

Software package i.e., Microsoft excel has been used for
tabulating and analyzing the data.
2.12 Method of analysis

The collected data have been analyzed with the help of statistical
tools and techniques like Averages, percentages, Ratio and the
like. And wherever necessary tables, charts, graphs have been
used to make the data in a presentable way.
Page 49
2.13 Chapter Scheme

Chapter-1
Introduction: The chapter deals with introductory aspects to the
issues identified.
Chapter-2
Design of the study: This chapter structures the research
design and gives various other chapters schemes.
Chapter-3
Company profile: This chapter deals with profile of Karnataka
Renewable Energy Development Limited.
Chapter-4
Analysis and interpretations: The chapter deals with cost
benefit analysis of social responsibility inKarnataka Renewable
Energy Development Limited.
Chapter-5
Summary of findings and recommendations: This chapter
gives summary and findings, conclusion and recommendations.
Annexure
Bibliography
Page 50
CHAPTER-3
COMPANY PROFILE
BACKGROUNDCOMPANY
Karnataka is the eighth largest states in India, rich in natural

resources. It is bestowed with high potential of Renewable Energy
Resources especially Wind, Small Hydro, Biomass, Cogeneration
and Solar which offer great possibilities of exploiting energy
without polluting the environment and is effectively implemented
in all parts of the State, thereby improving economic condition of
the farmers and creating employment opportunities. Electricity is
one of the most vital energy sources for economic development
activities. The economic development of a country by and large
depends on its efficient supply of power which can help in
transforming the many people and work.
Page 51
Karnataka Renewable Energy Development Limited (KREDL) was

formed on 8th March1996&co.no 08/20020 as a nodal agency
of the government of Karnataka to facilitate the development of
non-conventional energy sources. It is registered under the
Section 18(1) of companies act 1956 & Registered Office,
No.39Shanthi Gruha, Bharath Scouts Guides Building,
Opposite to Chief Post Master General Office, Palace Road,
Bangalore-560091.
Prior to the creation of KREDL, the Karnataka State Council
for Science and Technology (KSCST) the erstwhile Karnataka
Electricity Board (KEB) and Karnataka Power Corporation
Limited (KPCL) were looking after this sector as a subsidiary
function to their main activity.
But each of the above agencies had their own priorities and
limitations. While KSCST had research oriented, the KEBs priority
was management of power transmission and distribution. KPCL
was involved in construction of large power projects and could not
focus adequately on small power projects in the non-conventional
energy sector.
Therefore
promotion
of
renewable
energy
projects
as
supplement to conventional power generation to energy where in

Karnataka. This persuaded the Government of Karnataka to set up
a separate agency rendering hand holding project of support to
renewable energy project development.
Page 52
Thus, was born the Karnataka Renewable Energy

Development Limited for Promotion of Renewable Energy
and
Renewable
Energy
projects
development
in
Karnataka.
Today Karnataka has huge potential of renewable energy sources
of more than 15000 megawatt primarily in the sectors of wind,
small hydro, co-generation and biomass.
During 11th five year plan 1000(MW) within three years-by; an
additional 3000MW by 2017 though the mandatory of renewable
energy power has been added to the state grid.
To develop energy MINISTRY OF NEW AND RENEWABLE
ENERGY (MNRE) projects to meet the challenges of the raising
energy supply and demand in Karnataka.
Apart from KSCST, KEB, KPCL AND MNRE other agencies joining
hands to give more power to Karnataka includes IREDA, KERC and
KPTCL, along with departments of Government of Karnataka such
as Irrigation, Finance, Revenue, Forest and Environment. PSUs
like BESCOM, MESCOM, HESCOM, GESCOM.
Others in this line are Karnataka Solar Manufactures and
consultants, wind Biomass and co-generation developers and
consultants etc.
2.3 Vision
Page 53
To develop R&D Institute to carry out state-of-the-art

research and developmental activities in the area of renewable
energy in general and bio-energy in particular.
To
develop
new
and
renewable
energy
technologies,
processes, materials, components, sub-systems, products &

services at par with international specifications, standards and
performance parameters in order to make the state net earner in
the sector and deploy such indigenously developed and/or
manufactured products and services in furtherance of the national
goal of energy security.
2.2 Mission
To create an enabling police frame work for the development
of 20000(MW) of solar power by 2022.
To promote of off-grid applications, reaching 1000(MW) by
2017 and 2000(MW) BY 2022.
Increase in the share of clean power: Renewable (bio, wind,
hydro, solar, geothermal & tidal) electricity to supplement
fossil fuel based electricity generation;
Energy Availability and Access: Supplement energy needs of
cooking, heating, motive power and captive generation in
rural, urban, industrial and commercial sectors;
Energy Affordability: Cost-competitive, convenient, safe, and
reliable new and renewable energy supply options; and
Energy Equity: Per-capita energy consumption at par with
the global average level by 2050, through a sustainable and
diverse fuel- mix.
Page 54
2.3 Goals & objectives of the company: To survey investigate, construct, execute and carry out
schemes and work of all kinds for exploitation of NonConventional Energy including all power vacation lines for
the agricultural, industry and society.
Working as an interface between the government and its
various agencies and the community of developers.
Investigation of potential renewable energy sources.
Inviting applications from private sector developers for
development of proven potential, advising the government
on policies to obtain speedy development of projects in the
sector.
Scrutiny
of
developers
applications
for
allocation
and
of
identification
capacity,
of
suitable
assisting
the
developers, wherever such assistance is sought. To prepare

a detailed project report.
Assisting the developers in obtaining statutory clearances.

To carry on business investment in securities and particularly
Page 55
by purchase of receivable in the form of lease rentals

relating to real property, securitization of receivables and
the like.
To conduct research and arrange or establish facilities for
research, servicing or testing of the good, material and this
is in which company is authorized to deal.
PRODUCT PROFILE
1. WIND ENERGY
Page 56
From the ages wind has been used for several applications of
mankind in the world. Wind energy does have the Potential
Energy and Kinetic Energy, this form of energy can either be
harnessed through Mechanical application
A wind energy system transforms the kinetic energy of the wind
into mechanical or electrical energy that can be harnessed for
practical use. Mechanical energy is most commonly used for
pumping water in rural or remote locations- the "farm windmill"
still seen in many rural areas of the U.S. is a mechanical wind
pumper - but it can also be used for many other purposes
(grinding grain, sawing, pushing a sailboat, etc.). Wind electric
turbines generate electricity for homes and businesses and for
sale to utilities.
There are two basic designs of wind electric turbines: verticalaxis, or "egg-beater" style, and horizontal-axis (propeller-style)
machines. Horizontal-axis wind turbines are most common today,
constituting nearly all of the "utility-scale" (100 kilowatts, kW,
capacity and larger) turbines in the global market.
Page 57
Turbine subsystems include:

A rotor, or blades, which convert the wind's energy into
rotational shaft energy;
A nacelle (enclosure) containing a drive train, usually
including a gearbox* and a generator;
A tower, to support the rotor and drive train; and
Electronic equipment such as controls, electrical cables,
ground support equipment, and interconnection equipment.
WIND
POWER
PROJECT
DEVELOPMENT
(KREDL)
IN
KARNATAKA:-
Page 58
The Ministry of New & Renewable Energy (MNRE) has

installed the wind assessment program through its subsidiary
centre for energy technology
(C-WET).C-WET has assessed the
wind potential at 50M height to be of the order of about 13236

MW considering 2% of geographical area of the state. This
continued program including state government funded project,77
wind monitoring station are established include in the state.
Currently the wind measurement studies are in progress.
Karnataka is best owed with good wind energy potential in
the country of the energy potentials on date about 9235MW of
wind capacity has been allotted. 661 projects have been
commissioned so for with a total installed capacity of 1536MW till
the end of March 2010. KREDL and has set up demonstration wind
project of 2MW capacity at Mavinahonda, Belgaum district in
august 2003. Another demonstration project 2.5MW capacity has
been set up at sogi, Bellary district in August 2004.
Page 59
TABLE 2.1
SL
NO
Financial
year
Capacity
allotment
(MW)`s
to 179.638
Capacity
in commissioned
in (MW)`s
37.225
1
2
Up
2000
2000-01
256.500
3.75
2001-02
441.200
28.8
2002-03
741.428
55.46
2003-04
394.050
83.17
2004-05
603.850
204.55
2005-06
1689.450
174.63
2006-07
2521.500
264.45
2007-08
1188.600
192.8
10
2008-09
136.200
321.35
11
2009-10
1076.500
170
Total
9234.920
1536.185
Page 60
2. SMALL HYDRO ENERGY
Hydrogen
energy
based
power
generating
unit
Hydrogen fuelled three-wheeler

In India there are many rivers. In river, water flows from high
points to low points because of the force of gravity. Inflows of
water, some of the energy is captured and convert it into electric
power. The power available in a flow of water of over a given
interval depends on two factors:
The vertical distance the water falls over the interval measured
in feet or meters, and the volume of the flow of water, measured
in cubic feet or cubic meters per second. Small Hydro Hydroelectric power stations capture the energy in flowing water to
Page 61
produce electricity. Small hydro-electric generating systems

provide clean, cheap electricity for local applications.
Small Hydro Division in KREDL:1. Statistics: No of projects as on date 2063.350MWcapacity
No of projects commissioned as on date (IPP) 45nos.
506.27MW
Expected projects to be commissioned by 2014another
200MW
KREDL has the pride of bagging prize for development
of small hydro projects consecutive 4th time.
2. Based on capacity:
Large Hydropower plants >25MW
Small Hydropower plants 3MW to 25MW.
Mini Hydropower plants 1 MW to 3 MW
Micro Hydro 10 KW to 1 MW
3. Based on Head: Low Head Plant (< 15 m)

Medium Head Plant(15m<H<50m)
High head Plant (H>50m)
Power (KW) =9.81*efficiency of system* flow (m3/s)*head (m). As
on date, 600projects to the extent of 2063.350MW are allotted.
Page 62
Out of them, 26 projects to the extent of 560.27MW are

commissioned. It is expected 57 projects to an extent of 138 MW
to commission for the year. Another 10projects to an extent of
100MW are expected to be commissioned by March 2010. Hence,
such projects will be closely monitored and nurtured to achieve
the aimed target.
TABLE2.2
SL
NO
Capacity
commissioned in
(MW)`s
103.2
Financial Capacity
year
allotment in
(MW)`s
Up to
420.550
2000
2000-01 105.000
2001-02
36.5
2002-03
249.200
13.25
2003-04
245.575
34.5
2004-05
206.275
33.15
2005-06
263.650
76.55
2006-07
314.000
13.12
2007-08
103.000
90
10
2008-09
11.500
10
72.100
12
Page 63
11
2009-10
Total
72.500
2063.350
138
560.27
3. BIO MASS AND CO-GENERATION ENERGY
A. BIO MASS:Bio
mass
is
renewable
energy
resource
derived
from
carbonaceous waste of various human and natural activities. It is

derived from numerous sources, including by the products from
Page 64
the timber industry. Agricultural crops, raw-materials from the

forest, major ports of household waste and wood.
Biomass fuels used in India account for about one third (1/3) of
the total fuel used in the country , being the most important fuel
used in over 90% of the rural householders and about 15% of the
urban households.
1. BIOMASS GASIFICATION:The gasification is basically a chemical reactor where various

complex physical and chemical processes take place. The
processes of gasification are namely drying of fuel, paralysis,
combustion and reduction.
Biomass gets converted into gas with a calorific value of 10001300 kcal per Nm3, which would have the following.
Composition-co-15-20%
H2-15-20%,
CH4-1-45
CO2-8-5%
N2-45-55%
ENERGY FROM WASTES:-
Page 65
1. Quantity of wastes/ annum from class 1 cities 27 million

tones, 4400 million CU.M of sewage in addition to
industrial waste.
2. These estimates translate to a potential of 1200 MW
from urban waste and 800 MW from industrial waste till
26 MW achieved and 50WM under implementation.
As on the date total potential 1000MW but biomass allotted

478.20MW&Commissined 87MW Biomass/Biogas targeted from
2009to2014 300MW
TABLE 2.3
Page 66
SL
NO
1
Financial Capacity
Capacity
year
allotment in commissione
(MW)`s
d in (MW)`s
Up
2000
to
4.50
0.00
0.00
2000-01
30.50
2001-02
193.70
4.5
2002-03
215.00
0.00
2003-04
7.50
35.5
2004-05
21.00
6.00
2005-06
0.00
27
2006-07
0.00
8.00
2007-08
6.00
0.00
10
2008-09
0.00
0.00
11
2009-10
0.00
6.00
Total
498.20
87
B.COGENERATION
Page 67
Cogeneration is combined heat and power is the one of heat

energy or a power station to simultaneously generate both
electricity and useful heat conventional power plants.
Emit the heat created as by-products of electricity generation into
the environment through cooling towers, as fuel gas, or by other
means CHP (combined Heat and power) captures the by-products
heat for domestic or industrial heating purposes, either very close
to the plant or especially in
Scandinavia and Eastern Europe for distribution through pipes to
heat local housing (district heating). By product heat at
moderate temperatures (100 to 180* C) can also be used in
absorption chillier for cooling that is production of cold. A plant
producing
electricity,
heat
and
cold
is
sometimes
called
regenerations or more. Generally: polymerization plant.

Cogeneration is thermodynamically the most efficient use of fuel.
In separate production of electricity some energy must be
rejected as waste heat, whereas in cogeneration the potential for
production of high quality energy (electricity or work) is saved.
1. MICRO HP:Micro cogeneration is also called distributed energy resource
(DER), and is on the scale of one household or small business.
Instead of burning fuel to merely heat the house or hot water,
some of the energy is converted to electricity in addition to heat.
Page 68
This electricity can be used within the home or business, or (if

permitted by the network owner) sold back into the network.
Existing micro CHP installations use four different technologies:
internal combustion engines, sterling engines, closed cycle steam
engines and fuel cells.
TABLE 2.4
SL
NO
1
Financial year Capacity

allotment
(MW)`s
Up to 2000
315.60
Capacity
in commissione
d in (MW)`s
89
2000-01
144.00
2001-02
175.00
49.8
2002-03
182.50
16.5
2003-04
29.00
80.8
2004-05
0.00
41
2005-06
0.00
46.1
2006-07
0.00
0.00
2007-08
15.00
0.00
10
2008-09
116.10
11
2009-10
57.70
17.5
196.1
44
Page 69
Total
1034.90
580.8
4.SOLAR POWER ENERGY
The solar energy produced by the sun and largely untapped

resources. Solar energy can be used to produce electricity to heat
domestic hot water and offset a buildings space heating needs
solar energy is pollution free India is potentially the largest single
market for renewable energy in the world over 17% of the people
on earth line in India, and approximately 60% of the Indian
population lacks electricity, India has plentiful solar energy.
1. HOW THE SUN PRODUCES ENERGY?
The sun is a sphere of high temperature gases about 1.4 million
kilometres in diameter (About 870000 Miles). The temperature of
the interior of the sun is 15 million degrees Kelvin (About 27
million degrees F) this high temperature combined with a
pressure that is 70 billion times higher than atmosphere Pressure
on earth creates ideal conditions for fusion reactions. Fusion
reactions come about by the union of light atomic nuclear to form
Page 70
heavier nuclear, releasing a large amount of energy in the

process.
2. SOLAR PHOTOVOLTAIC (SPV):Photovoltaic refers to the creation of voltage from light. SPV (solar
photovoltaic) systems directly convert sun light into useful
electricity. This process is called the photo electrics effect.
The word photovoltaic comes from two roots. Are photo means
light and voltaic means voltage producing. When the sun rays
fall on a photovoltaic cell it increases the energy stored in the
atoms of the thin waters of silicon. These cells when connected in
tries and parallel constitute a solar panel.
Solar Photovoltaic Programs:1. Solar home lightings systems.
2. Solar street lightings systems.
3. Solar power plant.
4. Solar pump sets.
3. SOLAR THERMAL ENERGY PROGRAMME:The main objectives of the schemes are market development,
commercialization and utilization of solar thermal systems for the
fulfilment of heat energy requirements of different application in
domestic, institutional and industrial sector.
The scheme has all components.
Page 71
1. Thermal research and development

2. Solar water heater
3. Solar cooker programme
3. Adithya solar shops
4. SOLAR WATER PUMPING SYSTEM:Subsidy of Rs.30/- per peak watt of PV array subject to maximum
of Rs. 50,000/- per pump set available for solar water pumping
system through the state Nodal Agency and soft loan facility at
the rate of 5% is also available up to 90% of the unsubsidized
portion of pump set through IREDA.
COMPETITORS PROFILE:
1) Suzlon Energy - Suzlon Energy is the biggest Wind Energy
Company by far with 4-5 Gigawatts of WTG Capacity per year. Its
subsidiaries Hansen Transmission and Repower are also big
players in the Wind Energy in Europe. The Company has seen its
revenues and profits take a huge hit in recent times but have
been recovering
2) Moser Baer - This is primarily a Solar Panel Production

Company which has recently made a big bet to get into the Power
Production Space as well. Moser Baer Projects Private in which
the Blackstone Group made a $300 million bet has plans of a
20:80 mix of Green and Dirty Power.
Page 72
3) Tata Power / Tata BP Solar - The biggest private utility in

India has big plans for Clean Energy as well. Its subsidiary Tata BP
Solar is one of the biggest producers of solar panels and cells in
the country. The company has huge plans in wind, solar and
geothermal energy. Ithas also invested in a geothermal energy
project in Indonesia.
4) Orient Green Power - This Chennai based company is the

largest Green Utility in India with more than 200 MW of
Renewable Energy Capacity mostly in Wind and Biomass.
The
company came out with one of the biggest IPOs in India in 2010.
5) Greenko - This is one of the biggest Green Utilities in India

with around 200 MW of Electricity Capacity predominantly in small
hydro and biomass plants. It is listed Londons AIM Exchange and
has a top notch management team. Its recent performance has
been quite good and it is expanding rapidly.
6) NTPC - The biggest utility in India will obviously be a big

renewable energy generator in the future as well. While currently
it does not have much of renewable energy capacity, it has lined
up massive investments in hydro and solar power. Its trading arm
NVVN is the nodal agency for dispersing funds for solar plants
under JNNSM.
7) Kenersys - The Company is part of the Baba Kalyani Group

which is a major forgings manufacturer in India. It was bought
over in 2007,when the Kalyani Group and PE firm First Reserve
Page 73
bought over the German company RSB Consult. The Company

mainly makes 2 and 2.5 MW turbines and has production facilities
both in India and Germany. It has wind design capabilities
between 1-3.6 MW and with a powerful parent; it could become a
success in the future. Amongst the newer wind energy companies
like Lietnar, RRB Energy,Regen and Win Wind,it looks like the one
with most potential. Note you can an indirect exposure by
investing in Bharat Forgings.
OVERALL ORGANISATION CHART OF

KREDL
Chairman
Managing Director
General Manager
Deputy General
Manager 2
Asst. General
Manager 6
Technical Officer 6
Project Officer
(Energy Conservation)
4
Project Officer
(CDM) 4
Page 74
Asst. Tech Officer

12
Project
Engineers (4)
Inspecting
Officers (4)
Project Inspectors (16)
Asst
Forest
Affairs
System
Analyst
Project
Engineers (4)
Inspecting
Officers (4)
Project Inspectors
(16)
Junior
Engineer
Electrician
Mechanic
Managing Director
Company Secretary
Steno
Data Entry
Operator /
Typist (3)
Admn.
Officer
AsstAdmn
Officer 2
First Div
Assistant (4)
Chief
Controller
of Finance
Assistant
General
Manager
Accounts
Accounts
Officer
Public
Relations
Officer
Asst Public
Relations Off
Public
Relations Assistant
Second Div
Assistant (3)
Page 75
Drivers (6)
Asst.
Accounts
Officer 2
Cleaner
(2)
Sales
Assistant
Marketing
Executive
Marketing
Assistant
FUNCTIONAL DEPARTMENTS:
ADMINISTRATIO
N
SECTIONS
FINANCE
HR
IT
WIND
ENERGY
SMALL
HYDRO
ENERGY
BIO-MASS
ENERGY
SOLAR
ENERGY
Page 76
3.1 Administrative/HRD Departments:

3.1.1 INTRODUCTION
Human resource is the most basic form of resource which is of
utmost necessity for the functioning of any business firm, unit,
factory, plant or organization. An organization is incomplete
without the human resource; all the activities of the organization
are initiated and completed by the persons who make up the
organizations.
Human resource management is the planning, organizing,
directing and controlling of the procurement, development,
compensation, integration, maintenance and reproduction of
Page 77
human resource to the end that individual, organizational and

societal objective are accomplished
3.1.2 Human Resource Management:
For any organization, staff or men power is the most valuable
asset... In the modern age where computers and information
technology have brought revolutionary changes in the progress
and performance, human resource factor's importance has
become imperative. Many years ago large organizations had no
separate department for staff matters and Personnel & Admin
Department was doing the job. But recently, organizations
consider the Human Resource Department (HRD) playing a major
role in staffing, training and helping to manage people so that
people
and
the
organization
are
performing
at
maximum
capability in a highly fulfilling manner.
3.1.3 OBJECTIVE
The develop self-awareness to the employee
To maintain good relationship to employee & employer.
To maintain healthy environment in the organization.
To apply theoretical knowledge into practical knowledge i. e
(training).
Page 78
To maintain the employee satisfaction in the organization.

To achieve the company objectives.
3.1.4 FUNCTIONS
Recruiting the employee when it necessary, first receive
report from top level management and then onwards recruit
the employee and handle selection process.
Recording the daily employee attendance and maintain
those record.
Using
the
punching
machine
system
to
record
the
attendance.
Analysing the employee performance (i.e. performance
appraisal)
Job analysis and job description.
Determining the wages and salaries.
3.2 Technical Department

3.2.1 OBJECTIVE
To achieve the organization goals.
To maintain good relationship with others provides
agencies.
Page 79
To maintain good customer relationship and tie up private

agencies.
To introduce innovative technology and schemes.
Promotes schemes for renewable energy in the project
areas.
Promotes scheme for utilizing renewable energy from the
3.2.2
projects built by the company.

FUNCTION
Implementation of renewable energy projects

Expedite the completion of on-going renewal projects.
Work of Command Area Development Authority (CADA)
under respective Act.
Provide project management services for renewable energy
projects.
3.3 Finance Department:

3.3.1 Introduction
The finance department of a company is responsible for all of the
financial aspects of a company, The Finance Department really
has two fairly dissimilar jobs to perform in most companies:
managing the companys financial resources (Finance) and
recording
and
reporting
all
its
financial
transactions
(Accounting). Todays mid-sized and smaller companies dont
Page 80
establish separate Finance and Accounting departments within

their organizations.
The Finance department is responsible for managing the financial
operations Functional responsibilities include accounting, financial
reporting, cash management, budgeting, debt management and
investments.
The
accounting
function
includes
accounts
receivable, accounts payable, fixed assets and general accounting
3.3.2 Objectives
To finance normal year to year improvements.
To meet repayment of loans and other borrowing.
To meet company goal.
To cover operating expenses taxes and interest payment and
to provide adequate maintenance and depreciation.
3.3.3 Functions
Maintaining the journal and ledger entry.
Cash receipts and payment has been recorded.
Announcing the budget i.e. financial statement for the year
ending.
Page 81
Collecting cash from the customer and maintain customer

account.
Preparing the cash flow statement and balance sheet.
Roles of the Finance Department in KREDL
Accounting and Finance is the heart of a business. Its functioning
efficiently directly affects the rise and fall of a business. It is
possible to survive, for a while at least, without an effective
marketing plan, poor human resource management and indeed a
poorly designed business strategy finance is a very essential to
smooth running of the business No finance - no business No
business, whether big, medium or small can be started without an
adequate amount of finance. Right from the very beginning, i.e.
conceiving an idea to business, finance is needed to promote or
establish the business, acquire fixed assets, make investigations
such as market surveys, etc., develop product, keep men and
machine at work, encourages management to make progress and
create value These departments are crucial to the financial wellbeing of a company and ensure that there is money for day-today operations and oversee investments strategies for future
growth
3.4 SECTIONS:
Wind Energy Division in KREDL:-
Page 82
A wind energy system transforms the kinetic energy of the

wind into mechanical or electrical energy that can be harnessed
for practical use. Mechanical energy is most commonly used for
pumping water in rural or remote locations- the "farm windmill"
still seen in many rural areas of the U.S. is a mechanical wind
pumper - but it can also be used for many other purposes
(grinding grain, sawing, pushing a sailboat, etc.). Wind electric
turbines generate electricity for homes and businesses and for
sale to utilities.
There are two basic designs of wind electric turbines:
vertical-axis, or "egg-beater" style, and horizontal-axis (propellerstyle) machines. Horizontal-axis wind turbines are most common
today, constituting nearly all of the "utility-scale" (100 kilowatts,
kW, capacity and larger) turbines in the global market.
It includes:
A rotor, or blades, which convert the wind's energy into
rotational shaft energy;
A nacelle (enclosure) containing a drive train, usually
including a gearbox and a generator;
A tower, to support the rotor and drive train; and
Electronic equipment such as controls, electrical cables,
ground support equipment, and interconnection equipment.
Small Hydro Division in KREDL:-
Page 83
Small Hydro Hydro-electric power stations capture the energy

in flowing water to produce electricity. Small hydro-electric
generating systems provide clean, cheap electricity for local
applications.
1. Statistics: No of projects as on date 2063.350MWcapacity
No of projects commissioned as on date (IPP) 45nos.
506.27MW
Expected projects to be commissioned by 2014another
200MW
KREDL has the pride of bagging prize for development
of small hydro projects consecutive 4yh time.
2. Based on capacity:
Large Hydropower plants >25MW
Small Hydropower plants 3MW to 25MW.
Mini Hydropower plants 1 MW to 3 MW
Micro Hydro 10 KW to 1 MW
Bio Mass Division in KREDL:Biomass gets converted into gas with a calorific value of
1000-1300 kcal per Nm3, which would have the following.
Composition-co-15-20%
H2-15-20%,
CH4-1-45
Page 84
CO2-8-5%
N2-45-55%
ENERGY FROM WASTES:1. Quantity of wastes/ annum from class 1 cities 27 million
tones, 4400 million CU.M of sewage in addition to
industrial waste.
2. These estimates translate to a potential of 1200 MW
from urban waste and 800 MW from industrial waste till
26 MW achieved and 50WM under implementation.
As on the date total potential 1000MW but biomass allotted
478.20MW&Commissined 87MW
Biomass/Biogas targeted from 2009to2014 300MW
Solar Energy:The main objectives of the schemes are market development,
commercialization and utilization of solar thermal systems for the
fulfilment of heat energy requirements of different application in
domestic, institutional and industrial sector.
The scheme has all components.
1. Thermal research and development
2. Solar water heater
3. Solar cooker programme
Subsidy of Rs.30/- per peak watt of PV array subject to maximum
of Rs. 50,000/- per pump set available for solar water pumping
system through the state Nodal Agency and soft loan facility at
Page 85
the rate of 5% is also available up to 90% of the unsubsidized

portion of pump set through IRED
CHAPTER-4
ANALYSIS AND INTERPRETATION
COST & BENEFIT ANALYSIS ON SOCIAL
RESPONSIBILITY
Cost and benefit analysis on Social Responsibility is done by using
various techniques like averages, percentages, ratio etc., from the
following parameters:
1. Benefits to Employees
2. Benefits to Employees in Training, Provident Fund, Leave
3.
4.
5.
6.
7.
8.
Encashment, Rewards and Other Benefits

Benefits to Community
Good Corporate Citizenship Activities
Benefits to Outsiders
Accident Relief Fund
Environmental Initiatives
Job Opportunities to SC/ST and Downtrodden people of the
Society
9. Employment Opportunities to Women Workforce
10.
Training Programmes
4.1 BENEFITS TO EMPLOYEES

The KREDL renders various benefit programmes to its employees
and to the children of its employees. Canteen, Medical & hospital,
and Housing Facilities are provided to the employees to increase
productivity,
loyalty,
inspiration,
and
by
way
of
social
Page 86
responsibility. The amount incurred on each of these facilities is

shown at Table 4.1 and Chart-4.1
TABLE-4.1
TABLE SHOWING BENEFITS TO EMPLOYEES
(Rs in 000)
EMPLOYEES BENEFITS
Particulars
201011
201112
201213
Growth
in
Percentage
2011-12 2012-13
Medical &
Hospital
Facilities
441.52 626.525 685.46 141.90

8
4
109.41
Canteen
Facilities
12.11
394.658 799.39 3258.94

7
202.55
64.5
180
95.70
188.837 152.81
8
Housing &
township
Facilities
Water
charges
Labour
Fund
12.669 19.08
172.25 279.07
8
-
39.286 150.60
80.93
205.90
(source: Annual Reports)
Page 87
ANALYSIS
It is observed from the Table No.4.1 that the Amount spent on
medical and hospital facilities was 441.528 Lakhs during the year
2010-11, which increased to 685.464 Lakhs by the end of 201213. In terms of percentage during 2011-12 it was141.90%, which
decreased to 109.41% during the year 2012-13. Amount spent on
canteen facilities was 12.11 Lakhs during the year 2010-11, which
increased to 799.397 Lakhs by the end of 2012-13. In terms of
percentage during 2010-11 it was 3258.94%, which reduced to
202.55% during the year 2012-13. Amount spent on Housing &
township facilities was 64.5 Lakhs during the year 2010-11, which
increased 172.258 Lakhs by the end of 2012-13. In terms of
percentage during 2011-12 it was 279.07%, which reduced to
95.70% during the year 2012-13. Amount spent on Water charges
was 152.818 Lakhs during the year 2012-13. In terms of
percentage during 2012-13 it was 80.93%. Amount contributed
towards Labour Fund was 12.669 Lakhs during the year 2010-11,
which increased to 39.286 Lakhs by the end of 2012-13. In terms
of percentage during 2011-12 it was 150.60%, which increased to
205.90% during the year 2012-13.
Page 88
CHART-4.1
CHART SHOWING BENEFITS TO EMPLOYEE
Medical & hospital facilities

800
Canteen facilities
1000
800
600
600
400
400
200
200
0
2010-11
2011-12
2012-13
2010-11
2011-12
2012-13
Page 89
Water charges
Housing & township facilities

200
200
150
150
100
100
50
50
0
2010-11
2011-12
2012-13
2010-11
2011-12
2012-13
Labour fund
50
40
30
20
10
0
2010-2011
2011-12
2012-13
INFERENCE
From the chart it is clear that Medical & Hospital facilities,
Canteen facilities and Contribution towards Labour Fund has been
increasing but Housing and township facilities and Water charges
provided has been decreasing during the year 2012-13.
Page 90
4.2 SPECIAL BENEFITS TO EMPLOYEES:

KREDL also renders various special benefit programmes to the
employees, provident fund, gratuity, bonus, insurance benefits,
leave encashment and leave travel benefits, provided to their
employees so that it leads to the better performance of the
employees by way of social responsibility. The amount incurred in
each of these facilities is shown at Table 4.2 and Chart 4.2.
TABLE.4.2
TABLE SHOWING SPECIAL BENEFITS TO EMPLOYEES
Page 91
(Rs in 000)
SPECIAL BENEFITS TO EMPLOYEES
Particulars 2010-11 201112
2012-
Growth in
13
Percentage
2011- 2012-13
12
Training
967.85
4
Provident
fund,
2280.69 2521.3
2901.7
110.5
gratuity,
89
1969.1
87.66
139.16
116.07
59
115.09
bonus,
insurance
benefits
Leave
encashme
nt
1614.20 1415.0
and 5
51
49
leave
travel
benefits
Other
16492.0 20722.
24051.
125.6
benefits
47
689
549
Page 92
ANALYSIS
training was 967.854 Lakhs during the year 2012-13.
Amount
spent on provident fund, pension fund and bonus was 2280.694

Lakhs during the year 2010-11, which increased to 2901.789
Lakhs by the end of 2012-13. In terms of percentage during 201112 it was 110.55%, which increased to 115.09% during the year
2012-13. Amount spent on leave encashment &leave travel
benefits was 1614.205 Lakhs during the year 2010-11, which
increased 1969.149 Lakhs by the end of 2012-13. In terms of
percentage during 2011-12 it was 87.66%, which increased to
139.16% during the year 2012-13. Amount contributed towards
other benefits was 16492.047 Lakhs during the year 2010-11,
which increased to 24051.689 Lakhs by the end of 2012-13. In
terms of percentage during 2011-12 it was 125.65%, which
decreased to 116.07% during the year 2012-13.
Page 93
CHART 4.2
CHART SHOWING SPECIAL BENEFITS TO
EMPLOYEES
Page 94
provident fund,gratuity,bonus,insurance benefits
Training
3000
1000
900
800
700
600
500
400
300
200
100
0
2500
2000
1500
1000
500
2010-11
2011-12
2012-13
2011-12
2012-13
Other benefits
Leave encashment and leave travel benefits

2000
1800
1600
1400
1200
1000
800
600
400
200
0
2010-11
25000
20000
15000
10000
5000
0
2010-11 2011-12 2012-13
2010-11
2011-12
2012-13
Page 95
INFERENCE
From the chart it is clear that Training benefits to Employees has
been increasing from the past three years, benefits such as
provident fund, gratuity, Bonus, Other Special benefits has been
increasing and Leave encashment and leave travel benefits has
been fluctuating from year to year.
4.3 BENEFITS TO COMMUNITY

KREDL renders various environmental improvement initiatives for
the benefit of the community. Mavinhunda & Sogi Wind Demo
Project and its maintenance is one of the major steps taken by the
organization for the benefit of the community. The amount
incurred on each of these facilities is shown in Table 4.3 and Chart
4.3
Page 96
TABLE 4.3
TABLE SHOWING BENEFITS TO
COMMUNITY
(Rs in 000)
BENEFITS TO COMMUNITY
PARTICULA
2010-
2011-
2012-
Growth
RS
11
12
13
Percentage
2011- 2012-13
Labour
1852.1
3571.2 9427.2
12
192.8
charges
Maintainen
03
09
96
137.84 8513.5 5264.2
2
6176.
ce charges 7
Misc.
expenses
Total
61
-
61
-
1989.9 12084. 14691.
5
77
557
in
263.98
61.83
09
607.2
121.57
Page 97
CHART 4.3
CHART SHOWING BENEFITS TO
COMMUNITY
Total benefits to community

16000
14000
12000
10000
8000
6000
4000
2000
0
2010-11
2011-12
2012-13
INFERENCE
Page 98
From the above chart it is clear that total benefits to community is

increasing from year to year. This clearly shows that the
corporation is very keen on cutting down on cost but at the same
time take initiatives for a better environment.
4.4 GOOD CORPORATE CITIZENSHIP ACTIVITIES

KREDL renders various corporate citizenship activities. The
prompt payment of taxes, duties by the corporation to the central
and state government shows its concern for the general public.
The amount incurred on each of these duties is shown in Table 4.4
and Chart 4.4.
Page 99
TABLE 4.4
TABLE SHOWING CORPORATE CITIZENSHIP
ACTIVITIES
(Rs in 000)
GOOD CORPORATE CITIZENSHIP
ACTIVITIES
Particular 2010s
11
Taxes,
45700.
Duties,et
c.,paid to
the
Central
Govt.
201112
201213
Growth
in
Percentage
2011-12 2012-13
95000.
52500. 207.88
55.26
Page 100
Taxes,
Duties,et
c., paid to
the State
Govt.
State
services
consumed
electricity
&
water
services
Central
servicespostal &
telegrams
Total
3.8
47.806
31.215 1258.05 65.30
181.99
8
273.35
9
8277.2 150.20
6
3027.98
618.83
863.44
2
1052.2 139.53
85
121.87
46504. 96184.
628
607
61860. 206.83
76
64.31
ANALYSIS
Taxes, Duties, etc., paid to central Government was 45700. Lakhs
during the year 2010-11, which increased to 52500. Lakhs by the
end of 2012-13.
In terms of percentage during 2011-12 it was
207.88%, which decreased to 55.26% during the year 201213.Amount spent on Taxes, Duties, etc., paid to State Government
was 3.8 Lakhs during the year 2010-11, which increased to
31.215 Lakhs by the end of 2012-13. In terms of percentage
Page 101
during 2011-12 it was 1258.05%, which decreased to 65.30%

during the year 2012-13.
Amount paid to State services
consumed was 181.998 Lakhs during the year 2010-11, which

percentage during 2011-12 it was 150.20%, which increased
to3027.98% during the year 2012-13. Amount paid to Central
services consumed was 618.83 Lakhs in the year 2010-11, which
percentage during 2011-12 it was 139.53%, which decreased to
121.87% during the year 2012-13.
CHART 4.4
CHART SHOWING GOOD CORPORATE CITIZENSHIP
ACTIVITIES
Page 102
Total Corporate citizenship Activities

100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
2010-11
2011-12
2012-13
INFERENCE
The Total Taxes paid to Central and State Government and also
towards
Central
and
State
consumed
services
has
been
fluctuating from year to year. This shows their fair & Honesty,
Duty towards the government and good corporation citizenship.
4.5 BENEFITS TO OUTSIDERS
Page 103
As a part of its social obligations, KREDL has taken up many

projects relating to energy conservation and energy efficiency
keeping the overall interest of the society in view.
The other
consideration is their present or past contribution/role for the

Society, Nation, State etc.
The following Table 4.5 shows the
benefits to different classes of Society.
TABLE 4.5.a
TABLE SHOWING BENEFITS TO OUTSIDERS
Sl.
No
.
Name of the project
Approxim
ate
cost(in
Rs.)
Rs.6.75 lakh
Rs.25 lakh
1.
2.
3.
Replacement of the
existing
HPSVL/MVL/MHL/FTL
street
lights by 80W LEDs.
Replacement of the
existing
HPSVL/MVL/MHL/FTL
street
lights by 80W LEDs.
Implementation of
Energy Audit Measures at
government
Rs. 46 lakh
Rs. 8 lakh
Rs. 40 lakh
Rs. 49 lakh
Rs. 40 lakh
Rs. 40 lakh
Rs. 100 lakh
Location/place
Udupi Town
Magadi Town &Puttur
Town
ESI Hospital Rajajinagar,
Bangalore
Vanivilas Hospital, KR
Market.
Minto Hospital, KR
Market.
Victoria Hospital, KR
Market.
KC General Hospital,
Malleshwaram.
Kalghatagi&Alnawar
Towns
pavagada Town
Kanakapura Town
BasawanaBagewadi
Town
AnnegeriHobli
DCs Office building,
Chamarajnagar.
DCs Office building,
Page 104
buildings.
Rs. 4 lakh
Tumkur.
Karnataka State Prisons
Head Office building,
Bangalore.
Regional
Commissioners Office
building, Mysore.
Gulbarga Region- mini
vidhansoudha, Aiwan- EShahi Guest House,
Police Bhavan building,
DC Office complex,
koppal.
Mysore RegionKR Hospital, DC Office
(CADA), Mysore Medical
College, Text Book
Printing Press,
Kalamandira, Regional
Commissioner office,
P.K.T.B & CDHospital,
cheluvambha hospital.
Hubli Region- 15
buildings have been
taken up for auditing.
Rs. 100 lakh
About 500 Police

stations in the Bangalore
city.
Rs. 2 lakh
Rs. 8 lakh
4.
5.
6.
7.
Energy Auditing of
Government
buildings.
Replacement of the
existing
T-12/T-10/T-8 FTL with
Copper
Chokes by T-5 Lamp with
electronic ballasts
LED Village Campaignreplacement of the
existing
incandescent lamp/FTL
by LEDs
(Home Lighting)
Replacement of the
existing
HPSVL/FTL by LEDs
(Street Lights).
Providing Smart Energy
Saver
Belagumba&Byadarahall
i villages in
BelagumbaPanchayat,
KasbaHobli, Magadi
Taluk, Ramanagar
Rs.20 lakh
District.
Rs. 150 lakh Bangalore City: Rs. 100
Lakh
Page 105
units for the Street Light

Circuits in the Bangalore
& Mysore Cities.
Installation of LED
moving video display
boards at public places
8. across the state.
Replacement of the
existing low efficient
water pumps by Energy
Efficient Star Rated
pumps at selected
Government Hospitals
9. across the state.
Energy Conservation
Building
10. Code (ECBC).
Mysore city: Rs. 50 Lakh

DCs Offices, ZP Offices,
Bus Stands,
Rs. 100 lakh Taluk Offices etc.
Government Hospitals
Rs. 100 lakh across the state.
ANALYSIS
The above Table shows that corporation is keen in doing
responsibility activities. This shows their Social Obligation towards
the Citizens of the country.
BENEFITS FROM GOVERNMENT OF KARNATAKA

The
corporation
received
state
financial
assistance
from
Government of Karnataka for providing Belaku Yojane and Solar

Roof-Top Yojane to different classes of the society. The Table 4.5.b
shows State financial assistance received from GOK towards
various projects.
TABLE 4.5.b
Page 106
TABLE SHOWING STATE FINANCIAL ASSISTANCE

RECEIVED FROM GOK
(Rs in crores)
STATE FINANCIAL ASSISTANCE FROM GOK

20112012Growth in
Particulars
12
13
Percentage
201112
2012-13
SFA for BelakuYojane
10
SFA for Solar Roof-Top

Yojane
12
Total
ANALYSIS
It is observed from the Table No.4.5.b that the Amount received
from GOK as state financial assistance towards SFA for Belaku
Yojane and SFA for Solar Roof-Top Yojane was 12 crores during the
year 2012-13
CHART 4.5.b
CHART SHOWING STATE FINANCIAL ASSISTANCE
RECEIVED FROM GOK
Page 107
Total SFA from GOK

14
12
10
8
SFA for Solar Roof-Top Yojane
SFA for Belaku Yojane
6
4
2
0
2011-12
2012-13
INFERENCE
From the above chart it is clear that State financial assistance
received from Government of Karnataka for providing belaku
yojane and solar roof-top yojane to various citizens of the society
has been given in one year.
4.6
JOB
OPPORTUNITIES
TO
SC/ST
AND
DOWNTRODDEN PEOPLE OF THE SOCIETY

KREDL also gives enormous number of job opportunities to the
SC/ST and downtrodden people of the society. It is categorized
into 2. They are Class I & II officials and Class III &IV officials. The
second category is further sub-divided into, Mechanical and
Administration
&
others.
The
detail
information
is
neatly
presented in a Table 4.6
Page 108
TABLE 4.6
TABLE SHOWING JOB OPPORTUNITIES TO
DOWNTODDEN PEOPLE
Category
Employees
SC
ST
Class I & II officials
36
1) Drivers
2) Cleaner
3) Peon/attendant/maid
4) Mechanic
5) Electrician
c)Administration& others
26
Total
80
10
Class II & III officials
ANALYSIS
There were 10 employees belonging to Scheduled Castes and 6
employees
belonging
to
Scheduled
Tribes
as
against
80
employees. The percentage of Scheduled Castes employees to
Page 109
the total employees on roll is 12.5% and the percentage of

Scheduled Tribe employees to the total employees is 7.5%.
CHART 4.6
CHART SHOWING JOB OPPORTUNITIES TO
DOWNTRODDEN PEOPLE
Job opportunities to SC/ST
12
10
8
6
4
2
0
SC
ST
INFERENCE
From the above chart it is clear that the corporation has shown
interest in providing employment opportunities to downtrodden
people of the society.
Page 110
4.7
EMPLOYMENT
OPPORTUNITIES
TO
WOMEN
WORKFORCE
The corporation is a good employer of women. They have
recruited
Women
peons/attendant/maid,
apart
from
Administration Staff. The Details are as follows:
TABLE 4.7
TABLE SHOWING EMPLOYMENT OPPORTUNITIES TO
WOMEN
WORKFORCE
(Amt in Rs.)
Sl.n
o.
1
2
3
4
5
6
7
8
9
10
11
Designation
No. of
Women
Employees
Assistant technical
officer(AE Grade)
First Division Assistant
Public relation Assistant
Stenographer
Second Division Assistant
Typist
Receptionist
Peon/attendant/Maid
Assistant - Energy
Conservation
Second Division Assistant
- Energy Conservation
project assistant - clean
development mechanism
Employee
Benefits
3
1
1
1
1
1
1
2
1367508
252924
252924
252924
226032
226032
226032
397116
252924
226032
226032
Page 111
Assistant - Wind Solar

12 Hybrid Systems
Total
1
15
252924
4159404
ANALYSIS
Women Employees:
There are 15 women employees. The total
employee benefit given to these women employees are 4159404

as against total employee benefit of corporation are 20704128 in
terms of percentage 20.09% of total employee benefit.
Page 112
CHAPTER-5
SUMMARY OF FINDINGS, CONCLUSIONS &
RECOMMENDATIONS
SUMMARY OF FINDINGS
After in-depth study on the data available through analyzing and
interpreting the same, the major findings are listed below:
The KREDL has a variety of Social Responsibility activity to the
needs of different segments like Employees, Community, General
public, Environment, Downtrodden people, Women, and Others.
1)Benefits to Employees :
In 2010-11 the expenses incurred on all these facilities was about
530.807 lakhs, which increased to 1849.223 lakhs in the financial
year 2012-13. Thus, the KREDL is positive enough in spending
amounts to the benefits of employees that forms a major Social
Responsibility activity. If we look into individual benefits Medical,
canteen & Labour fund has been increasing but Housing and
township facilities and Water charges benefits is decreasing. This
Page 113
shows lack of awareness among employees & Management

negligence.
2)Other benefits to Employees:

20386.946 lakhs, which increased to 29890.481 lakhs in the
financial year 2012-13. We can conclude that the organization is
pragmatic
in
respect
of
social
responsibility
towards
its
employees. If we look into individual benefits, training expenses

has been increasing due to increasing in the number of trained
employees. Other special benefits such as leave encashment &
rewards has been fluctuating from year to year.
3)Benefits to Community:
1989.95 lakhs, which decreased to 14691.557 lakhs in the
financial year 2012-13. The cost incurred on community benefits
has been reduced. This is due to corporation has cut down the
maintenance expenses of tree saplings but the corporation has to
take initiatives for better environment.
4)Good corporate citizenship activities:

The KREDL is prompt and regular in making payment to the
government by way of taxes, duties to the central and state
government, electricity board, telephone authority, banks and
others. These are accounted appropriately. The aggregate amount
paid to all these authorities was 46504.628 lakhs for the year
Page 114
2010-11 and it has gone up to 61860.76 lakhs for the year 201213.
5)Benefits to Outsiders:
The KREDL has replaced many street lights into LED lights in
various
towns
Corporation
and
has
even
many
received
state
places
in
financial
Bangalore.
assistance
The
from
Government of Karnataka towards Belaku Yojane and Solar RoofTop Yojane which inturn saves energy. In 2012-13 the subsidies
received on all these facilities was about 12 crores. The KREDL by
way of social obligations provides facilities to all people.
6)Job opportunities to SC/ST & Women Workforce:

The corporation has complied with constitutional guarantee of
providing employment to Scheduled caste, Scheduled tribe,
women work force and other weaker sections of the society.
The corporation recruited 10 employees belonging to Scheduled
Castes and 6 employees belonging to Scheduled Tribes. Besides it
also recruiting 15 women employees. This amply and clearly
shows that the corporation great concern for downtrodden and
weaker section of the society especially the women work force.
We can conclude that KREDL is a best employer for Social
Accounting.
Page 115
SUGGESTIONS
1. The corporation can invest further more funds in respect of social
responsibility activities since it is on the profit mode.
2. The corporation is just saying how many beneficiaries are
benefited but not how effectively they are benefited. Therefore it
is suggested to measure the benefits on the basis of cost benefits
analysis ratio.
3. The corporation can provide education facilities to employees
childrens and conduct recreation, sports and cultural activities in
order to influence an employee to work efficiently.
Page 116
4. It is suggested to plant more number of plants and include this as

their social responsibility activity.
5. The welfare activities given to the employees are not adequate,
further facilities need to be given both monetary and nonmonetary so that the recipients will be happy and work better.
6. The greatest social responsibility of the corporation is not hike the
fares steeply. It affects commuters rather go in for avoiding
unproductive and wasteful expenditures.
7. The working conditions for the employees are in good condition.
The tidiness and improvised infrastructure in the working
conditions can influence an employee to work efficiently.
8. The corporation should conduct more and more training activities
in turn training increases efficiency and productivity, reduces
wastage and ensures better industrial relations.
The above are the few constructive suggestions. Take the above
suggestions in a right spirit and implement them.
CONCLUSION
Page 117
The Karnataka Renewable Energy Development Limited is a

pioneer public renewable energy development organization in
Karnataka doing service to the Customers in particular and the
society as whole. In respect of providing social responsibility
activities, it covers a wide spectrum of programs catering to the
different interest groups.
The budget on the social is increasing year after year and it
indicates the concern for the society. Overall we can conclude that
the KREDL with the limited resources is doing excellent Social
Responsibility activities.
Page 118

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A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

environments and social parameters have compelled them to

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

infrastructure and facilities. This has made the enterprise to

companies do not operate in isolation, but can have marked

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

Social accounting is a way of demonstrating the extent to which

comparisons where possible.

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

have become so massive that they exercise important influences

NATURE OF SOCIAL ACCOUNTING

accounting, social reporting Social accounting tries to measure

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

impairment of human factor of production, monopoly and social

deterioration in the law and order conditions in the industrial

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

According to Kohlers Dictionary for Accountants, social audit

consequences of its super legal public interest, non-profit

enterprise, creation of scholarships, technical training

improvement in which it functions.

1.3 OBJECTIVES OF SOCIAL ACCOUNTING

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

The main objectives of social accounting are to help society by

Social accounting, thought the AA1000 process standards,

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

accounting, auditing, and reporting against an organizations

2. Social Accounting uses participatory methods

Social accounting provides an ideal way to combine participatory

3.Social Accounting seeks to embed M&E

dialogue, and the development of a management information

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

(especially with the addition of a full module on this topic to be

organizational, rather than project level scope. Thus stakeholders

accountability to donor funded or NGO led projects in the

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

One of the most positive features of social accounting is that it

assessment of social performance and providing a report on the

Several benefits of social accounting and reporting by an

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

Attracting and retaining high quality of staff

1.6 MAJOR AREAS OF SOCIAL PERFORMANCE

employees, corporate community services.

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

Physical resources and Environment stewardshipincludes

1.7 CHECKLIST OF ITEMS OF SOCIAL REPORTING

checklists of items of Social Reporting are listed below in a table

MLA ACADEMY OF HIGHER LEARNING

A STUDY ON SOCIAL RESPONSIBILITY ACCOUNTING AT

Human Resource Stewardship

5.Remuneration and recruitment