- Social performance control deals with measuring social performance of the organisation and taking corrective actions in the light of this measurement.
- Measurement of social performance is quantitative in nature and to overcome this is a separate branch of accounting known as social accounting has been developed.
- There are techniques for measuring social performance based on social accounting they are:
Social cost benefit analysis:
- SCBA is based on evaluating benefits that accrue to the society and costs through which these benefits accrue
- While cost can be measured in terms of money social benefits cannot be defined monetarily and the concept of consumer surplus is applied
- Consumer surplus can be defined as difference between what a consumer willing to pay for a given product or service and the actual price charged. This willing price varies from situation to situation or may be interpreted differently by various person.
- Cost benefits analysis may be undertaken either on existing price system or discounted rate of costs and benefits.
- SI techniques consists of developing social indicators and measuring the social performance based on these indicators
- According to Burmet there are five broad indicators:
- Net income contribution.
- Human resource contribution.
- Creation of jobs and providing employment opportunities.
- Environmental contribution.
- Social service contribution.
Social goal setting:
- Social goal setting approach emphasis incorporating social concerns in the objectives of an organisation which may be on periodic basis or continuous basis.
- A combination of both can also be followed eg. Customer satisfaction, environment protection etc issues can be taken and followed on continuous basis where as eliminating the impact of destruction caused due to natural calamities can be taken on periodic basis.
- An organisation can identify the social concern to be served on the basis of its own environmental analysis and chose those areas in which it believes that it can contribute effectively by reducing the social costs and enhancing the social benefits.