Corporate social responsibility of accounting firms

Abstract

The aim of this dissertation is to create awareness about the necessity of adequate Corporate Social Responsibility policies adopted by the accounting sector. It examines four Corporate Social Responsibility theories, which are the Shareholder Value Theory (SVT), the Stakeholder Theory (ST), Corporate Social Performance Theory (CSP) and Corporate Citizenship Theory (CC). Policies used by the international accounting bodies of Association of Chartered Certified Accountants (ACCA) and Institute of Chartered Accountants in England and Wales (ICAEW) and the big four accounting firms are identified with said theories. It also highlights the significant problems associated with CSR implementation and recommends ways how this concept can be fully implemented to be beneficial to Maltese society. The findings and recommendations have been arrived at on the basis of bibliographical research, that is information published by the accounting firms and institutions under review in their respective websites. The main conclusions of this study can be summarised as follows: a) the continuous increase in demand for services from the accounting sector shows that it becomes necessary for the accountancy profession to have a strong mechanism to act responsibly; b) the Corporate Citizenship approach recognises contemporary challenges and provides a useful guide for the accounting firms as middle-men between companies and the community to deliver effective and sufficient sustainable social and environmental practices; c) that CSR must be implemented within the accounting firms in order to bring out a more humane side rather than for the sake of the reputation of the firms or as a marketing strategy; d) the need for the accounting firms to reduce their exposure to the potential danger of forming a gap between their words and actions especially when they come to Internal CSR.