A Review of Third Sector Reporting Frameworks

Author(s):  
Belinda Luke

The need for social reporting in third sector organizations is widely acknowledged. However, there is little agreement on how best to approach this. While various social reporting frameworks are available, the resource constraints (primarily time and money) of third sector organizations such as social enterprises, many of which are small or micro enterprises, are often overlooked in the development of these frameworks. Accordingly, the purpose of this chapter is to review the appropriateness of available social reporting frameworks, in view of social enterprises' hybrid nature and often limited resources. Borrowing from the discipline of accounting, fundamental financial reporting concepts and principles are considered, underscoring the need for a general-purpose reporting framework appropriate for social enterprises' dual objectives, limited resources, and their diverse range of stakeholders.

2011 ◽  
Vol 4 (2) ◽  
pp. 257-274 ◽  
Author(s):  
Hentie A. Van Wyk ◽  
Cobus Rossouw

Even though the IFRS for SMEs does provide some relief in respect of the financial reporting burden for non-public entities, there still seems to be a need for an even lower level of financial reporting. In recent years South Africa embarked upon the development of a financial reporting framework for non-public entities and various versions of this so-called micro GAAP have been issued. However, the Accounting Practices Board raised some concerns about the then proposed micro GAAP. This article highlights the South African accounting practitioners’ views from different professional bodies on micro GAAP. They generally believe that micro GAAP will represent fair presentation and that the financial statements prepared under micro GAAP can still be regarded as general purpose financial statements. Furthermore, the majority of accounting practitioners believe that there is a definite need for a third tier of financial reporting in South Africa and indicated their preference of which entities may apply micro GAAP. Legal backing of micro GAAP is also considered appropriate by the practitioners.


2019 ◽  
Vol 15 (02) ◽  
pp. 371-402 ◽  
Author(s):  
Pradeep Kumar Hota ◽  
Sumit Mitra ◽  
Israr Qureshi

ABSTRACTSocial enterprises (SEs) primarily aim to create social value, that is, to generate benefits or reduce costs for society, while maintaining financial sustainability. Owing to their unique operating conditions and organizational characteristics, SEs face more severe resource challenges than their commercial counterparts. These challenges are exacerbated for SEs operating in emerging economies with complex social contexts. Overcoming these resource constraints and social challenges is vital for SEs to achieve their mission. Using an inductive multiple case-study approach, we identify a unique bricolage solution for achieving the dual objectives of SEs. Our findings suggest that identifying locally embedded village level entrepreneurs is a bricolage activity that social entrepreneurs leverage in the resource constrained environment of emerging economies, especially for the social enterprises that are active in the villages but were founded by social entrepreneurs who are not from these villages. This article therefore contributes to both social entrepreneurship literature as well as entrepreneurial bricolage literature and has important implications for future research and practice.


2016 ◽  
Vol 16 (1) ◽  
Author(s):  
Gideon Nieman ◽  
Karel Fouché

Purpose: This report is on a team effort to advise the Department of Trade and Industry on the development of a regulatory framework for the auditing of Financial, Management. Performance and Social Reporting Systems for co-operatives. Orientation: There was no framework in place prescribing requirements for reporting on financial, management and social performance of co-operatives. As a result, the team assisted the Department of Trade and Industry with the development of a proposed reporting framework with reference to international best practices and existing financial reporting frameworks. Findings: The research performed showed that existing reporting frameworks and practices do not meet the reporting requirements of co-operatives in all aspects because of the different nature of co-operatives as opposed to shareholder-owned entities.


2013 ◽  
Vol 10 (3) ◽  
pp. 294-301 ◽  
Author(s):  
Matteo Pozzoli ◽  
Alberto Romolini

The Third Sector is a crucial social and economic system at an international level in supplying pub-lic services. The Italian law no 155/2006 and the consequent operating decrees have formally rec-ognised the social entrepreneurship, requiring social enterprises (SEs), among other things, to provide specific disclosure in relation to the social impact of their operations. This paper aims to in-vestigate whether there is a relation between the “quality” of SEs’ social reporting and financial per-formance. In relation to this, the research has examined the SEs instituted as limited liabilities companies. The research contributes to the development of this field of studies, concluding that there is no cause-effect relation neither in the hypothesis that the quality of social reports affects the financial performance, neither in the hypothesis that financial performance affects the quality of so-cial reports.


Author(s):  
Marcela Chreneková ◽  
Adriána Klapková ◽  
Veronika Svetlíková

The development of social entrepreneurship in Slovakia was accelerated by the adoption of a new law on its support in 2018. Most of the 123 registered social enterprises have the legal form of a business company, they are of integration enterprises type and the founders are mainly municipalities. Third sector organizations are not active enough in setting up social enterprises. The aim of the paper is to find out what are the barriers and potential for the development of social entrepreneurship in the third sector. Primary and secondary data sources were used in the work. The survey method was used for characteristic of social entrepreneurship, the awareness of municipalities and third sector organizations about the social economy and barriers to the establishment of social enterprises in third sector organizations. The biggest barrier to the development of social entrepreneurship in the third sector is unsystematic funding, the complexity of compliance with rules and regulations and the absence of mapping the needs of disadvantaged groups. There are 2 types of entities with the potential to establish a social enterprise, namely non-profit organizations providing services of general interest and civic associations. They are prerequisites for the establishment of a social enterprise because they employ a relatively high number of disadvantaged and vulnerable persons and are engaged in public benefit activities that can be the subject of generating profits in social enterprise. The awareness of third sector organizations about social entrepreneurship is much higher compared to municipalities, but they feel barriers to the establishment of a social enterprise.


2015 ◽  
Vol 9 (3) ◽  
Author(s):  
Gabriel Moreira Campos ◽  
Rafael De Lacerda Moreira ◽  
Rodrigo Simonassi Scalzer

This study highlights the accountability of Brazilian Third Sector Organizations to their stakeholders, since these organizations are not an end in themselves, and they play an important role in solving problems that affect all Brazilians, especially social inequality, violence, hunger and degradation of natural resources. The interaction between the Third Sector Organizations and external users of the accounting information generated by them, allows them to have a feedback on the impacts of the decisions taken by them and the operations they perform daily. In this study the Third Sector Organizations are considered providers of accounting information for the stakeholders. Thus, by means of an explanatory study with analytical and reflective approach, this research seeks to explain the use of Financial Statements and complementary Accounting Reports in the practice of accountability by Brazilian Third Sector Organizations to the external user. In this perspective, as contributions of this study is expected to: (i) identification of the financial statements and supplementary reports published by Third Sector Organizations affiliated with the Group of Institutes, Foundations and Enterprises – GIFE, and (ii) demonstrate the relationship between the degree of disclosure of these Organizations and the amount of funds raised by them during the period of the research.


2019 ◽  
Vol 118 (8) ◽  
pp. 347-355
Author(s):  
Hye- RimPark ◽  
Yen-Yoo You

Unlike non-profit organizations, social enterprises must be sustainable through profit-making activities in order to pursue social purposes.However, the most important of the poor limited resources is also human resources, and for the efficient use of human resources, empowerment should be given to members. This study proves whether job engagement mediates the effect on sustainability when psychological empowerment is given to employees in social enterprises.


1986 ◽  
Vol 25 (2) ◽  
pp. 175-192
Author(s):  
Shahrukh Rafi Khan ◽  
Naushin Mahmood ◽  
Rehana Siddiqui

Planning documents for the Seventies emphasized the importance of primary education and the curtailment of the mushrooming growth at the higher level. Our review suggests that this policy has had only partial success in implementation. Viewed in the context of educational planning theory and the evidence available for Pakistan, the policy is found to be sound. While the benefits of a correct distribution of investment within the educational sector are self-evident, resource constraints have been leading to an overall underinvestment in the educational sector. We show that Pakistan's public sector education is highly subsidized and so to supplement the limited resources devoted to it, we recommend, as a possible solution, a selective application of user charges.


2017 ◽  
Vol 44 (2) ◽  
pp. 27-46
Author(s):  
Michael Braswell ◽  
Roger B. Daniels

ABSTRACT Our study examines assurance and attestation practices of the Charleston Orphan House from 1790 to 1825 and represents a response to Alchian and Demsetz's (1972) call for research into the nature of stewardship and agency costs among nonprofits by providing evidence of the largely unexplored early American practices (Moussalli 2008; Sargiacomo and Gomes 2011). We document the origins of the assurance and attestation techniques used to legitimize the Charleston Orphan House and to minimize the agency costs faced by its public and private funders. We find that assurance and attestation practices were reflected in the routine publication of the Committee on Accounts reports that served as vital elements of a governance structure that enabled the municipality and philanthropists to monitor the financial condition of the institution. These oversight efforts helped minimize agency costs that naturally arose between the Orphan House and resource providers, making it possible for the City of Charleston and private funders to efficiently allocate limited resources to mitigate social costs of managing the post-revolutionary orphan problem. Our findings provide new insights into early assurance and attestation practices and support Alchian and Demsetz's (1972) conjecture that nonprofits face similar economic motivations for utilizing financial reporting, auditing, and attestation as monitoring mechanisms as do their profit-seeking counterparts.


2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Fiona Marshall ◽  
Adam Gordon ◽  
John R. F. Gladman ◽  
Simon Bishop

Abstract Background From late February 2020, English care homes rapidly adapted their practices in response to the COVID-19 pandemic. In addition to accommodating new guidelines and policies, staff had to adjust to rapid reconfiguration of services external to the home that they would normally depend upon for support. This study examined the complex interdependencies of support as staff responded to COVID-19. The aim was to inform more effective responses to the ongoing pandemic, and to improve understanding of how to work with care home staff and organisations after the pandemic has passed. Methods Ten managers of registered care homes in the East Midlands of England were interviewed by videoconference or phone about their experiences of the crisis from a structured organisational perspective. Analysis used an adapted organisational framework analysis approach with a focus on social ties and interdependencies between organisations and individuals. Results Three key groups of interdependencies were identified: care processes and practice; resources; and governance. Care home staff had to deliver care in innovative ways, making high stakes decisions in circumstances defined by: fluid ties to organisations outside the care home; multiple, sometimes conflicting, sources of expertise and information; and a sense of deprioritisation by authorities. Organisational responses to the pandemic by central government resulted in resource constraints and additional work, and sometimes impaired the ability of staff and managers to make decisions. Local communities, including businesses, third-sector organisations and individuals, were key in helping care homes overcome challenges. Care homes, rather than competing, were found to work together to provide mutual support. Resilience in the system was a consequence of dedicated and resourceful staff using existing local networks, or forging new ones, to overcome barriers to care. Conclusions This study identified how interdependency between care home organisations, the surrounding community, and key statutory and non-statutory organisations beyond their locality, shaped decision making and care delivery during the pandemic. Recognising these interdependencies, and the expertise shown by care home managers and staff as they navigate them, is key to providing effective healthcare in care homes as the pandemic progresses, and as the sector recovers afterwards.


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