The activities of corporations and other entities have a profound influence on societal prosperity. They are provided with legal rights and powers to achieve their personal objectives, in order to provide goods and services that serve society. Their accounts should fairly reflect the wider impact of their activities on society, and in particular on the social and environmental wellbeing of its members.
The Inclusivity Project is spearheading an initiative to establish a new accounting standard, called Social Contract Accounting. It provides accounting principles and guidelines for reporting entities on how to supplement financial results with meaningful information on their social and environmental impact. The proposals provide for reliable information that is capable of independent verification.
A draft standard for Social Contract Accounting includes:
The process for establishing standards includes: