Contemporary Issues in Accounting Theories: CSR
Contemporary Issues in Accounting Theories
Corporate Social Responsibility
Today, with increased globalization and increased market competition, the organizations are aiming for market expansion. However, before expanding into new territories, they need to understand the new work culture, follow new cultural norms, adhere to the legal rules and regulations, and finally overcome the issues of the workplace in a new work environment.
The role of the Human Resources (HR) department and the Accounts department are important as they need to first identify the new cultural practices, determine the working gaps in the present work environment of the organization, devise new norms to follow for the employees, and subsequently achieve desired objectives in a given work environment (Soltani, 2014).
Also, the HR department needs to ensure that all the employees of the organization are following ethical practices in the organization. The top-level management of the organization needs to issue the Ethical Code of Conduct that every employee need to follow in their work environment. It will assist them in overcoming the workplace issues in the organization.
Further, considering the new work environment, the organization needs to continue to adhere to their practices related to Corporate Social Responsibility. It will help the organization to conduct activities related to corporate social responsibility, specifically to the field of accounting. Today, it is found that the top-level management are comprising on their ethical values and are thereby breaching the code of practices in the field of accounting (Ball, 2009).
It is thereby important for the senior management to ensure that the accounting department is following the legal norms of new location and are subsequently submitting the accounting reports to the respective legal authorities in a given working environment. Further, from the CSR perspective, they need to conduct workshops and seminars that will make all the concerned stakeholders aware of the ethical practices in the field of accounting (Benediktsson, 2010).
They will thereby be able to overcome the challenges and other contemporary issues in the field of accounting. There are examples of companies like Enron and even Swissair and AOL that have manipulated the values of balance sheet and income statement to demonstrate higher profits of the company.
It will thereby easily catch the attention of the investors and later will get trapped in such activities of the organization. It is the responsibility of the government, the senior management, and other concerned authorities to overcome such accounting scandals and ensure that the company is following the Ethical Code of Conduct in their accounting practices (Benediktsson, 2010).
Further, from the CSR perspective, they can even spread awareness of such issues so that the employees remain alert and thereby prevent them from such practices in the organization. It is important for the organizations to report true facts and figures related to accounting in a given organization (Benediktsson, 2010). Only then the concerned shareholders and investor will place their trust in the company.
The company needs to find alternative ways to overcome the current challenges that will later help them achieve desired financial objectives from a long-term perspective. The company will be able to improve their bottom-lines and also will be able to generate better returns for their shareholders. It will ensure following the ethical principles and practices from the CSR perspective in a given organization. However, they need to upgrade these practices over a period and even monitor them so that they can modify them as and when required.