Developing a Social Accounting System for European Social Enterprises Based on Public Accounting

Abstract

The growing popularity of the social enterprises (SEs) discourse highlights the need for accounting-focused research. The SEs aim to create mainly social and environmental impact, rather than merely economic value for shareholders; hence, conventional accounting is often not suitable for SEs. Furthermore, the literature unfolds that social accounting is defined as a metric for measuring social and environmental impact. The authors argue that this one-sided accounting worldview is not sufficient, and they propose a well-known and operational accounting system that is based on the relationship between SEs and public organizations in the broader context of accounting, social finance, and public accounting. This chapter makes both theoretical and practical contributions by developing a common accounting language and practices between the public and social sectors in order to provide and distribute public and social value to society and organisations.