The fact: Role of Accounting in Strategy Formulation within an MNC Strategic man

Question

The fact:

Role of Accounting in Strategy Formulation within an MNC

Strategic management accounting provides financial control to the whole strategic management process by providing information on the financial aspects of the strategic plans and their implementation. (Houston, 2015)

Accounting provides managers with support to management the stakeholders’ interests. Secondly, it is used to evaluate the MNCs financial performance, appraise the proposed projects and make decisions based on them.

Strategic management accounting focuses on suppliers, customers, competitors and the economy as well as the organization and monitors performance of the organization in both financial and non-financial terms.

Question:

How does Corporate Social Responsibility (CSR) play a role in the strategy formation?

Explanation / Answer

Ans.

Meaning of CSR

CSR is about how companies manage the business processes to produce an overall positive impact on society. Companies need to answer to two aspects of their operations. 1. The quality of their management - both in terms of people and processes. 2. The nature of, and quantity of their impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as well as past financial performance - on quality of management as an indicator of likely future performance.

Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large

Company strategy formulation Oriented to Corporate Social Responsibility (CSR)

CSR-oriented company strategy formulation incorporates a holistic perspective of a future-oriented company, either external forces or internal forces, in order to achieve its goals and realize its strategic plan based on the ecological balance. Company's strategy is based on triple button line concept namely: profit, people and planet. The indicators used to measure the CSR-oriented corporate strategy variables, which consists of: 1) Compliance Management, 2)Environmental Management System, 3) Improved Performance, 4) environmental and sustainability reports, 5)Stakeholder Dialogue, 6) Control Products, 7) Supply Chain Management, 8) Eco-Innovation, 9) Contribution to Quality of Life and Community Involvement, and 10) Employer Of Choice. Implementation of Corporate Social Responsibility (CSR) is a concept in which companies pay attention to social and environmental integration in business operations and in their interaction to stakeholders is voluntary. The indicators used to measure the CSR implementation variables has been developed by Mishra and flares], who prefers to wealth creation and adequate satisfaction for our stakeholders, primarily consisting of 1) employee, 2) consumer, 3) investor, 4)society, 5) environmental, and 6) suppliers perspectives. Strategic performance measurement is used to measure the performance appraisal of all aspects and functions within company, and its implications not only affects the short term but the medium and long term, as well as performance-oriented aspects of financial and non-financial performance. Indicators to measure the performance variable is balance scorecard, with four perspectives namely: 1)Financial, 2) the consumer, 3) internal business process, and 4) learning and growth perspective.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.