It is the social value distributed outside the market, and therefore free of Price, or at least with a price that does not respond to the market. It is the value that an organization distributes to some of its stakeholders but in the absence of a monetary transaction, it is not reflected in the financial statements. Usually this value is only collected (when done), qualitatively. The main contribution of Social Accounting is to incorporate this value (hidden) to the social value integrated.
Published in Chapter:
Social Accounting in the Social Economy: A Case Study of Monetizing Social Value
Larraitz Lazcano (University of the Basque Country (UPV/EHU), Spain), Leire San-Jose (University of the Basque Country (UPV/EHU), Spain & University of Huddersfield, UK), and Jose Luis Retolaza (University of Deusto, Spain)
Copyright: © 2019
|Pages: 19
DOI: 10.4018/978-1-5225-8482-7.ch008
Abstract
This chapter was based on one of the largest Spanish cooperative groups, which is part of the social economy sector (SES). Added value is a useful concept; however, after analyzing this case, the authors found that social accounting provides additional information about the social value that companies generate. Then, by applying social accounting complemented by a value-added statement, these companies belonging to the SES can quantify, monetize, and compare their social value and added value, and demonstrate their contribution to society. Social accounting is necessary to demonstrate and understand the value of social economy companies, since their value is not always fundamentally centered on commercial activity; at least not only. They can monitor their effort in terms of specific social values that are not part of the market. Because of this, their value is not reflected in traditional financial statements.