Standard Setting Process
The process to establish standard accounting practice for the social contract is described out below:
Stage 1: Soliciting Propositions
There are a number of organisations that provide services to assess and/or measure an organisation’s social impact. In stage 1, we will work with providers with a view to putting forwards propositions for standard accounting practice, in accordance with the principles for social contract accounting.
Stage 2: Disseminating Information
Stage 2 will involve identifying routes by which the propositions can be disseminated to all interested parties. Interested parties will include businesses, investors, charitable (not-for-profit) organisations, government bodies, professional advisers, representative bodies, think-tanks and academic institutions. Information will be disseminated in a variety of ways, including electronic, physical and verbal. At all stages, feedback on suitability of propositions will be solicited on their practicality and usefulness as means of accounting for the social contract.
Stage 3: Evaluating Feedback
Stage 3 will involve collating and evaluating feedback. The goal is to identify the degree of consensus behind each proposition as practical and useful means of social contract accounting. Based on the evaluation, a draft standard will be issued. This will be disseminated to interested parties, with requests for feedback.
Stage 4 : Issuing a Standard
Stage 4 will involved collating feedback and issuing a consensus-based standard accounting practice. It is anticipate that the standard practice will voluntary, and will not become mandatory until sufficient experience is gained to justify mandatory practice. However, it is anticipated that investors and lenders will require organisations to incorporate social contract accounting to provide them with an understanding of the net extent to which the organisation contributes to social wellbeing in practice.