A survey of the social accounting and reporting practices adopted by the mobile phone service providers in Kenya

Abstract

This study sought to determine the social accounting and reporting practices adopted by the mobile phone service provider firms in Kenya. This was achieved by obtaining and analyzing both primary and secondary data. Primary data was obtained by way of questionnaires and the respondents drawn from senior management level of the four mobile phone service providers in Kenya. Secondary data comprised the published annual reports and accounts of these firms covering 2007/2008 and 2008/2009 fmancial periods. The social accounting practices considered are viewed from the following perspectives; social accounting awareness and orientation, how the firms conceive social accounting, how the firms identify the social activities, how the firms record social transactions and also how these firms do report or communicate social information to the stakeholders. In terms of awareness, the survey reveals that mobile phone service providers are aware of social accounting and are actually practicing it but the practices are carried out under the traditional accounting systems. The survey also shows that firms conceive social accounting as an information system that enhances day-to-day management of the social issues. The social actions are identified in line with the organizations strategies, practices and policies, social priorities and social cost-benefit analysis results. The study also reveals that the firms adopt the traditional system of recording social transactions and that their reports tend to be in narrative non- fmancial forms that almost entirely cover only the positive information on social activities. Lack of a formal format and standards that govern what to include in the social reports was revealed as one of the greatest challenges that face these firms in attempting to practices social accounting.