The accounting principles for social contract accounting are set out below. They draw on the principles for social contract accounting proposed in the Reporting 3.0 blueprints on integrated reporting.
The purpose of social contract accounts is to reflect the contribution of an organisation’s activities to the sustainable human-centric objectives of society.
Social contract accounts must be capable of being understood by experts, investors, and the general public alike.
The basis of social contract reports of organisations must be sufficiently consistent with each other to allow the organisation’s social contribution to be compared fairly with the contribution of other organisations. Its basis within an individual organisation must be sufficiently consistent over time to allow its contribution to be compared fairly over multiple accounting periods.
Social contract accounts must be prepared with integrity, to provide a true and fair reflection of the organisation’s social contribution. Its methodology and assessment must be explicit and capable of being audited by independent experts.
Social contract accounting is applicable to all organisations, regardless of size. Different methods of reporting may be applicable to different size organisations, to ensure that the cost of preparing accounting information is commensurate with its value.