With the advent of the social accounting, and more transparency being inculcated into the business practices, it has become imperative for the organizations to make sure that they are more robust in term s of the way information disclosure is carried out. What it means that they have to be efficient not only when it comes to setting up the goals, but also to ensure better long term strategic alignment of the organization.
When one talks about the business at the global space, the key thing that can be observed at the moment is the fact that how the companies that are operating these days have to make sure that they observe corporate social responsibility (Wanderley et al. 2014, p.369). The idea is to make sure that the businesses work towards creating the lasting impression (Darus et al. 2015, p.123). The lasting impression is needed to be put on the consumer as well as the relevant stakeholders (Darus et al. 2015, p.123). The recent research regarding the corporate social responsibility has pointed out towards the fact that how the companies need to more socially aware when it comes to making sure that they are taking enough initiates (Darus et al. 2015, p.123). One of the key aspects of the CSR is to make sure that the disclosure polices of the company must be satisfactory (ZHOU et al. 2013, p.022). In this paper, some of the best practices are going to be looked at in terms of the disclosure (Darus et al. 2015, p.123).
Setting the Measurable Goals
One of the key goals for the business has always been to make sure that they are setting measurable goals (Darus et al. 2015, p.123). The goals are especially important if one talks about the fact that how they can be materialized in the long run (Darus et al. 2015, p.123). Thus to ensure that the CSR policy can be measured, there is a need to ensure that the smaller changes are needed to be brought at the level of the business (Waller and Lanis, 2015, p.109). There are simple steps such as making sure that the waste management is being looked after in the right manner as well as supporting the sustainability polices goes a long way towards making sure that the disclosure strategy is chalked in the right manner (Darus et al. 2015, p.123).
Increasing the Stakeholder Engagement
At times, there is a big mistake that is made by the companies is that they do not develop enough consensus among the stakeholders. Instead, they try to take all the decisions on their own (Darus et al. 2015, p.123). When that happens, that green and social initiatives are not going to work. It is a big part of the disclosure started to make sure that the stakeholders must be aware of all the decision making possibilities that are carried out by the business (Darus et al. 2015, p.123). The key aspect is to make sure that the value, mission and the long term orientation of the whole thing is needed to be kept in mind (Darus et al. 2015, p.123).
Corporate Social Responsibility and the Social Accounting
In the recent days, there is a pheromone that has been introduced which is about making sure that the social context and consideration is being made the part of the accounting process. It goes a long way in ensuring better decision making (Darus et al. 2015, p.123). The social accounting talks about the fact that what are some of the methods and the rationales that are being used during the course of the accounting process that were related to the broader themes that are witnessed in the society (Darus et al. 2015, p.123).
The researchers and the practitioners have given considerable time to the way company’s policies are being formulated (Rodríguez and LeMaster, 2017, p.370). The disclosure is one of the key aspects of the way corporations can make sure that they are looking after the corporate social responsibility. The key thing is that is being seen most of the times are that the firms increase demand for debt and have equity issues (Darus et al. 2015, p.123). When that happens, there overall cost of the capital goes down. So if the informative disclosures are carried out by the organizations in the right manner, they would go a long way in making sure that the sound and rational decision making would be carried out by the organization (Darus et al. 2015, p.123).
Incentive for the Companies and Disclosure
Most of the times, the companies have decent incentive when they are engaging in the stakeholder management (Darus et al. 2015, p.123). The way they can do that is by making sure that they are taking socially responsible actions as well as providing extensive disclosures during each of the practice sessions (Darus et al. 2015, p.123). As a matter of fact, the firms that are socially responsible are more likely to be measured in their expression of corporation social responsibility if they are sound in their judgment related to the corporate governance (Darus et al. 2015, p.123).
Provision Of Information By The Companies
At the moment, the way organizations are moving forward, they most of the times spend great deal of effort towards making sure that the CSR and disclosures are carried out in an appropriate manner (Dhaliwal et al. 2015, p.759). The idea is to make sure that the provision of the information is carried out in the manner that the it gives a fair perspective about the way environmental and social performance is managed in the long run. From the perspective of economic policy making, the disclosure of the information goes a long way in making sure that the potential political costs can be avoided for the given time period. As per the political cost theory, the shareholder structure and the stakeholder management is positively related with the level of disclosure (Dhaliwal et al. 2015, p.45). There is another very important aspect of the corporate disclosure and it is the size and the industry of the organizations that are involved in the due process (Hughey and Sulkowski, 2013, p.24). If it is an industry where corporate disclosure is a norm, then most of the times it means that the costs that are associated with the profit making ability are going to be on the higher side (Gray et al. 2015, p.47). On the other hand, there are industries where the extent of the corporate disclosure is on the lower side. In ways, the corporate governance and the trend is setup by the market forces (Fernandez et al, 2012, p.1).
Conclusion and Recommendation
One of the key things that one gets to see related to the corporate disclosure is to make sure that the organizations are robust and quick to realize what are some of the things that are needed to be done by them to make sure that the whole thing is managed in the right manner (Garcia et al. 2016, p.15). The corporate governance and corporate social responsibility goes a long way though. The level of transparency that one get to see across the organizations and how it is related to the corporate governance goes a long way in determining the course of action that is taken by the business at each and every level (Fuente et al. 2017, p.750).
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