Social Responsibility in Accounting and Reporting

Question: Discuss about the Social Responsibility in Accounting and Reporting. Answer: Introduction: The press has the moral responsibility of highlighting all the unethical acts that has been taking place in the nearby society. They act as the channel that links the needy with the powerful is the government and the authorities. These low income group people are exploited in numerous ways. They have no knowledge about the interest rates and other benefits that has been provided to them for their upliftment. They have a fear of the authorities in their mind and companies like cash converter which is one of the public listed companies takes advantages of this threat and manipulates them and then exploits them for their own interest and good. These people knowing the facts that they are being exploited do not want to raise this issue to the government and thus, they are further being misused by these kinds of companies. They need someone to be their voice and take their stand in some public forum. The press thus plays a vital role in the development of the society. They becomes the voi ces of these kind of exploited a vulnerable people and supports them till there interest falls in safe hands and their interest gets protected. This exploitation once built becomes a channel and the low income group families once captured could not recover back from the built prison of interest. These companies do not want the government to be aware about the nature of the interest and the manner the same has been recovered from these people. Thus, through press the government authorities actually come sot know about the brutal acts that has been done by the management of these companies. Through the acts of the company, the country's future is in danger. The children of these families will tomorrow be the youth strength of the country and once these families fall under the bracket of this compounded interest they would in no case can break the shackles. No case study or case law and cast their vote in favour of Cash Converter Company. The ethical issues that are surrounding Cash Converters alleged practices are as follows: The interest arte changed by the company was no way looks ethical. In Australia, the loan is available at the rate of 2%-3% whereas the interest charged by the company has crossed 633% means in a year, the interest paid by the holder is sic times higher than the principle amount borrowed by him. The role of the accountant increases in this case. Although the accountant re the employees of the company and they cannot reveal the secrets of the company in public but still they some responsibility towards the society. They should not only work in the interest of the company but also towards the stakeholders and shareholders of the company. They are supposed to educate the customers applying for loans in the company about the terms and conditions. They cannot directly ask them to take loan from any other bank as this will not be interest of their job but they should ask the applier to go through the terms and conditions and read the offer document correctly before applying and signing it off. Further, the accountant are responsible to ensure at what rate the company is procuring loans form outside and interest rate they are highlighting in public documents. It is fact, that the company would be showcasing some different picture in its financials else this issue would have been raised way before. Thus in this case eth accountant are supposed to provide correct information in the financials. In case we be asked to perform the role of the accountant in the cash converter company, we would ask the purpose of the loan from the applier and will ask them to read the offer document correctly and get full information about the interest rate charged by the company. If the other person is not educated, he would be asked to consult some knowledgeable person in his family or nearby that could guide him. The corporation is under the liability to serve the needy and vulnerable people. They are supposed to provide the loans at minimal rates o that these low income group people can like a comfortable life and meets out all their needs. On the other hand, they are likely to protect the interest of the shareholders and stakeholder of the company and generate sufficient return for them to continue their interest in the company. However, it doesnt mean that the company indulges into some unethical acts of charging unnecessary interest from these low income group people in meeting the return expectations of the shareholders. These public companies are functioning for society and for these needy people there main motto is to help them and provide quick loans with low interest rate and on easy EMI's. This is the core objective with which these companies are put into function. They cannot hide or run form their core objectives. The raw material for the Cash converter limited i.e. cash is also being provided at subsidised rates by the government so that they does not suffer losses. The government never instructed them to misutilses their powers and exploit the poor for their own good. Conclusion Considering all the points, it is evident the points that has been raised by the press is correct. The same is in no case in the favour of the society or for the country. The government should take necessary steps to protect the interest of these people. References Avenir R, Demand Media, Social Responsibility in Accounting Reporting, Viewed on 3rd May 2016, https://smallbusiness.chron.com/social-responsibility-accounting-reporting-50438.html Gray Rob, 2013, Accountability, Social Responsibility and Sustainability: Accounting for society and the environment new book, Viewed on 3rd May 2016, https://drcaroladams.net/accountability-social-responsibility-and-sustainability-new-book/