Accounting

Question 1

Responsible management =

Answer 1

impossible w/out an accounting practice that delivers information regarding the triple bottom line, stakeholders, and ethical issues

–>The difference is that in responsible management –> managers largely are not yet used to measuring responsible management activity & performance

–> only if we learn to measure & manage the sustainability, responsibility, and ethics of organization can we achieve the ultimate goal of becoming truly responsible

Question 2

What does this chapter aim?

Answer 2

to provide a basis of concepts and practices to measure, manage, and improve responsible business activity & performance

Question 3

PHASE 0 (UNDERSTANDING BASIC ACCOUNTING)

Answer 3

provides underlying concepts that apply to all later stages of the accounting process as preparation to better understanding these later stages

–>Illustrates basic elements, quality criteria, and concepts of accounting and apply them to responsible management

Question 4

PHASE 1 (DATE GATHERING)

Answer 4

we identify the groups of data–environmental, social, ethical, and stakeholder information–to be gathered, and prioritize them

Question 5

PHASE 2 (DATA EVALUATION)

Answer 5

illustrates how to measure social and environmental benefits and costs and consider impacts on both the company & society–both current and future

Question 6

PHASE 3 (REPORTING)

Answer 6

shows avenues by which to disseminate the information found to stakeholders of the company–both internally and externally

Question 7

PHASE 4 (CONTROLLING)

Answer 7

elaborates on how to use data internally in order to manage what was measured –> which closes the cycle illustrated in the proverb mentioned earlier

Question 8

Underlying goal of the responsible accounting process

Answer 8

is to create STAKEHOLDER ACCOUNTABILITY, to be able to account for and to be held accountable for the triple bottom line stakeholder impacts, and the ethical outcomes of one’s management activity by a board set of stakeholders of this activity (see figure 14.1)

Question 9

STAKEHOLDER ACCOUNTABILITY (accountability to stakeholders)

Answer 9

is the process of providing relevant information to stakeholders that allows them to hold the organization accountable for its activity & outcomes

–> Recognizes that all individuals = have a right to participate in decisions that might impact them –> irrespective of the power each individual holds in relation to others

–>Advocates of holistic forms of accountability tend to recognize that all individuals = have a basic right regardless…

Question 10

in order for an organization to reflect a sustainability, responsibility, and ethics…

Answer 10

focus in daily activities and to constantly monitor the attainment of responsible business goals, and appropriate accounting process that individuates measurement systems & management tools should be put in place

–>Together w/ its provision of data that are relevant & useful for managerial decision making, responsible business accounting information –> also must enclose the qualitative attributes of the accounting process in a relevant sustainability context to enable stakeholders to assess the environmental & social impacts of the organization

Question 11

ACCOUNT

Answer 11

-is a (written or spoken) description of an event

–>The function of accounting information = developed through the concept of accountability –> as the duty to provide an account (by no means necessarily, a financial account) or reckoning of those actions for which one is held responsible

——>It is about identifying what one is responsible for & then providing about that responsibility to those who have rights to that information

Question 12

ORGANIZATIONAL ACCOUNTABILITY

Answer 12

readiness / preparedness of an organization to give an explanation and a justification to relevant stakeholders for its judgements, intentions, acts, and omissions when appropriately called upon to do so

Question 13

HOLISTIC ACCOUNTABILITY

Answer 13

refers to broader forms of accountability that can describe the impacts that an organization’s actions have, or can have –> on a broad range of other organizations, individuals, and the environment

Question 14

ACCOUNTING

Answer 14

the main goal of which is to provide companies w/ clear information on its economic activities

Question 15

AUDITING

Answer 15

–>-which is an independent appraisal performed by an independent expert of an activity / event–usually the annual financial reports –> although audits = can be for a particular project, sector, or technical or ecological

In brief –> accounting provides continuing information to users of such information; while auditing = a means to ensure such information is reliable, conforms to established rules & regualtions / examines the company’s position w/ regard to a specific position or criteria

Question 16

accountancy is divided into (2) main areas:

Answer 16

financial accounting & management accounting

Question 17

FINANCIAL ACCOUNTING

Answer 17

covers items such as revenue, earnings, assets, and so on

–>And is the public representation of the success, solidity, or other parts of the business entity

Question 18

MANAGEMENT ACCOUNTING

Answer 18

deals w/ the more internal “bookkeeping nature” of business, covering, budgeting, net present value, and other items

Question 19

EXTERNAL ACCOUNTING

Answer 19

the accounting profession = fulfills a second duty to those outside the company / organization –> to provide a fair & honest representation for potential investors, creditors, governments, and other stakeholders

–> trust = central to markets, and even the appearance of impropriety is damaging

Question 20

Thus THROUGH THE ETHICS OF ACCOUNTING

Answer 20

practitioners of management accounting and financial management = have an obligation to the public, their profession, the organization they serve, and the themselves to maintain the highest standards of ethical products