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Journal of Finance and Accounting 2019; 7(2): 32-39
http://www.sciencepublishinggroup.com/j/jfa
doi: 10.11648/j.jfa.20190702.11
ISSN: 2330-7331 (Print); ISSN: 2330-7323 (Online)
Potentials of Applying Social Responsibility Accounting in the Banking Sector in Lebanon: An Empirical Study
Hasan El-Mousawi 1 , Hussein Trabulsi
2
1 Accounting Department, Lebanese University, Beirut, Lebanon
2 Economics Department, Lebanese University, Beirut, Lebanon
Email address:
To cite this article: Hasan El-Mousawi, Hussein Trabulssi. Potentials of Applying Social Responsibility Accounting in the Banking Sector in Lebanon: An
Empirical Study. Journal of Finance and Accounting. Vol. 7, No. 2, 2019, pp. 32-39. doi: 10.11648/j.jfa.20190702.11
Received: March 4, 2019; Accepted: April 13, 2019; Published: May 15, 2019
Abstract: Universal interest in organizations’ role and their impact on society and rising prospects of investors, consumers, employees and local communities about the importance of this role and its impact on society, which made many governments,
non-governmental organizations and local communities seek more transparency and accountability; provided that it is not
limited to daily operations of organizations of any nature, but it should include the extent of impact those operations have on
society. This research aimed at shedding light on the concept and importance of social responsibility accounting and
determining the extent of applying it in Lebanese banks in order to deal with the deficiency in outputs of the accounting
system, which is reflected in financial statements, by including information about social responsibilities and revealing the
impact of disclosing it in financial statements. To achieve the goals of the research, a questionnaire has been devised to be
distributed among employees in the middle and high administrations (managers, heads of accounting departments and
employees of the accounting department) in Lebanese banks, where 200 questionnaires were distributed in the banks. The
Statistical Package for Social Sciences (SPSS) was used to make various statistical tests to analyze the outputs in order to reach
results and present recommendations which may be good to approach the deficiency in outputs of the accounting system. The
research yielded some important findings, mainly that managements of banks in Lebanon are aware of the concept of social
responsibility; however, managements of banks in Lebanon do not develop relations with the local community except in
certain domains.
Keywords: Social Responsibility Accounting, Lebanese Banks, Financial Statements
1. Introduction
Recently, the issue of social responsibility accounting has
been viewed as the most in accounting development as a
result of the increase in size and activities of economic units
which have vast financial, economic, social and
environmental impacts. Since accounting is a social career
which accompanies social and economic changes, it was
imperative for the accounting mind to promote in order to
respond to these changes. One of the results of this response
is the emergence of social responsibility accounting, which
studies and analyzes the social impact of a project on the
society where it operates and conveys this information to
relative parties to increase efficiency of decision-making.
Evaluation of an organization’s performance is no longer
limited to financial indications, but it extends to reach
nonfinancial indications, which include social indications.
The extent of its success is limited to the extent of its
contribution to achieving sustainable development and
keeping its social obligations.
The concept of social responsibility accounting is still
deficient in Lebanon; consequently, this study came to
convey the potentials of applying social responsibility
accounting (SRA).
2. Literature Review
Although corporate social responsibility (CSR), also
typically known as social responsibility accounting (SRA),
has been subject to great debate and analysis from around the
middle of the twentieth century, the available literature about
33 Hasan El-Mousawi and Hussein Trabulssi: Potentials of Applying Social Responsibility Accounting in the
Banking Sector in Lebanon: An Empirical Study
it is unreliable and confused [1-2]. Mathews [3] defines the
concept of Social Responsibility Accounting as the
organization’s voluntary disclosure of information aimed at
influencing or informing its audiences. Mook et al. [4],
defined social responsibility accounting (SRA) as social
accounting that can be issued by any organization including
information that permits stakeholders to monitor the
organization's performance in dealing with both positive and
negative social issues. This makes way for social
responsibility accounting (SRA) to determine and measure
the net social contribution of the firm periodically.
However, some researchers say that thoughts, methods and
procedures according to principles of SRA don’t allow
organizations to be profitable. An organization is thought to
best contribute to its society by gaining greater profits and
economic growth, not by executing humanitarian actions [5].
One of the earliest definitions of SRA is that it reports on a
feature of the organization’s social activities, whether it be on
its performance or on an effect [6].
Social Responsibility Accounting is usually used in
business although any given organization of any type may be
engaged in social accounting. Such organizations may
include government agencies, non-governmental
organizations, or even charities. For organizations to take
their social responsibilities, they should work in a legislative
environment which identifies and summarizes corporate
duties for societies [7]. Waddock [8] affirmed that the SRA is
the subgroup of corporate responsibilities which deals with
an organization’s optional relationships with its society
stakeholders and hence is normally undertaken with some
target to improve an important feature of society or
relationships with non-governmental organizations (NGOs)
or other non-profit communities. Therefore, it would be
essential to accelerate the passing of laws to oblige industrial
organizations to take their responsibility and to issue
accounting standards [7]. It is necessary to improve the
standards of transparency and disclosure to comprise
disclosure of environmental pollution decrease costs as one
of the main essentials of the concept of social accounting [9].
An organization can not exclusively satisfy the needs of
investors. There are other people or groups who have an
influence on the organization. In addition, the organization
has an influence on these groups, which are the stakeholders
[10]. Stakeholders may be clients, societies, employees, trade
organizations, providers, governments, and political groups.
The organization has a direct moral responsibility to some
stakeholders to attend to their well-being [11].
There is an idea of a social contract or an agreement
between the company and its stakeholders [12]. The
organization has the choice of disclosing the information,
which will be in agreement with the stakeholders’ prospects.
If the activities undertaken by the organization are
acceptable, then the organization will be seen as legitimate
and can get permission to operate [5]. The prospects in
communities change with years and organizations should
respond to their moral environment as norms change [13].
A company should have two required components that
must be achieved for Social Responsibility Accounting,
mainly that it must employ its proficiency in corporate social
responsibility work and that the goal it is trying to achieve is
fundamental to be performed [5]. When an organization gives
value to its clients and its society, it becomes noticeable
which also give back value to the organization and its
owners. Therefore, it should be prepared to supply solutions
when there is communication with stakeholders to be viewed
as legitimate [5].
At an early phase, research published on Corporate Social
Responsibility was mainly descriptive and/or empirical
which mainly referred workers, products, and environmental
factors, all of which were minor [14, 15]. There were two
noteworthy improvements from thence. The first is the
development of reporting to include social issues and others,
and the second is the separate reports which organizations
used to disclose SRA information [16]. In spite of the many
attempts to find what enhanced organizations to disclose
information about corporate social responsibility or to create
models which advance Social Responsibility Accounting
disclosure, the relative literature remains below the required
level [15].
Close to the end of the twentieth century, there existed an
augmentation in the distribution of social and environmental
information, whether it be in annual financial reports or in
separate reports which were produced especially for that
purpose [12, 17]. All of this resulted in an increase of
researches which analyzed social information which
companies disclosed [18, 19].
Although concepts of Social Responsibility Accounting are
varied, the researchers conclude that the comprehensive
definition of SRA is that it is a group of activities for
measuring and analyzing social performance of business
organizations and disclosing this information to the relative
parties to help them in making decisions and evaluating the
social performance of those organizations. This definition
reveals the interest of SRA in measuring social performance
and reporting the results to evaluate the social performance
of any organization.
3. Domains of Social Responsibility
Accounting
There have been numerous attempts to identify activities
relative to SRA for organizations which should be included
into accounting interests, and there have been diverse trends
in determining these activities and classifying them into four
main domains of social performance done by the National
Accounting Association in America (NAA) as follows [20]:
Interaction of the organization with society.
Contribution to developing human resources.
Contribution to developing natural and environmental
resources.
Leveling up the standard and quality of services and
products.
The American Institute of Certified Public Accountants
Journal of Finance and Accounting 2019; 7(2): 32-39 34
also defined domain proportions for social performance,
including [21]:
Environment
Human resources
Non-renewable resources
Suppliers
Clients
Society
In addition, the American Accounting Association (AAA)
had conducted a field study involving certain organizations
which prepare social reports to know the principles followed
in measurement and disclosure. It issued a report which
included five domains of social responsibility as follows:
Control over the environment
Employing minorities and special needs
Employees
Improving products
Community service
Consequently, the basic goals of social responsibility
accounting is to supply information and prepare social
reports which reflect the extent of the organization’s
commitment to disclosure of social performance regardless
of internal or external obstacles which might affect the
comprehensiveness of the disclosure to reach the main aim
behind preparing the report, which is mainly for all users to
benefit from it in decision making relative to investments; in
addition to using the proper and accurate measurement for
social costs of the organization and following the regular
standards in determining the costs of it social activities.
4. Research Problem and Hypotheses
The research problem is summarized in the disconcern of
economic organizations in disclosing social responsibility in
financial statements and in organizations’ unawareness of its
importance; consequently, nor knowing its impact on
decisions of financial statements’ users. Based on this, the
research problem lies in answering the following questions:
How much awareness do banks have about the concept of
social responsibility?
Do banks in Lebanon apply social responsibility
accounting?
Is there a relation between disclosing social responsibility
and decisions of financial statements’ users?
Do managements of banks in Lebanon develop relations
with the local community?
Based on the research problem and the questions above,
the researchers have four hypotheses to be discussed and
proved or disproved:
H1: Managements of banks are not aware of the concept of
social responsibility.
H2: Banks in Lebanon do not have the potentials to apply
social responsibility accounting.
H3: Applying social responsibility accounting does not
affect the quality of financial reports.
H4: Managements of banks in Lebanon do not develop
relations with the local community.
5. Procedures and Methods
5.1. Population and Sample Selection
The population of the study consists of employees of
different positions (managers, heads of accounting
departments and employees at the accounting departments)
of banks listed in the stock market operating in Lebanon. The
study was limited to a random sample of 200 employees of
the above mentioned. Only 147of the distributed
questionnaires were retrieved, of which 138 questionnaires
were valid for analysis.
5.2. Instrumentation
The researchers constructed a Likert Style five-point scale
and asked the employees of different positions (managers,
heads of accounting departments and employees at the
accounting departments) in banks listed at the stock market
operating in Lebanon to respond to the 40 items of the
questionnaire distributed to four domains as follows in table
1:
Table 1. Domains of the Questionnaire.
Domains Number of items
First Domain: Awareness of Social Responsibility 6
Second Domain: Aspect of Applying Social Responsibility Accounting 13
Third Domain: Impact of Social Responsibility Accounting on Quality of Financial Reports 6
Fourth Domain: Importance of Developing Relation with Local Community 15
Total items 40
The scale ranges as follows:
Table 2. Extent of Agreement.
Answer Strongly agree Agree Neutral Disagree Strongly disagree
Degree 5 4 3 2 1
Since the five-point Likert Scale was used in designing the
tool of the study, the research adopts the standard illustrated
in the following table to judge the inclination of each item
when using the Likert Scale, mainly depending on the mean
value and relative weight to determine the extent of consent
to the items an domains of the questionnaire.
35 Hasan El-Mousawi and Hussein Trabulssi: Potentials of Applying Social Responsibility Accounting in the
Banking Sector in Lebanon: An Empirical Study
Table 3. Likert Scale Results.
Approval level Very low Low Medium High Very high
Mean < 1.8 1.8- 2.59 2.6- 3.39 3.4- 4.19 > 4.2
Relative weight < 36% 36%- 51.9% 52%- 67.9% 68%- 83.9% > 84%
This gives statistical significance that averages which are
less than 1.8 show very low consent to the item or the
domain as a whole, and averages ranging between 1.80 and
2.59 show low consent to the item or the domain as a whole.
Whereas averages between 2.60 and 3.39 indicate medium
consent of the members of the sample to the item or the
domain as a whole. Averages between 3.40 and 4.19 show
high consent to the item or the domain, and averages higher
than 4.20 show very high consent to the item or the domain
as a whole.
5.3. Reliability of the Study Tool
Findings of the current study show that Cronbach’s Alpha
of the questionnaire was 0.698, while the split-half test result
was 0.576. This shows that the items of the questionnaire
were reliable; thus, the data can be analyzed and generalized
on the population of the study. The following table illustrates.
Table 4. Cronbach’s Alfa and Split-Half Results.
Domains Cronbach's Alpha Split-Half
No. of Items Cronbach's Alpha Correlation Between Forms Guttman Split-Half Coefficient
All Questionnaire 35 .698 .576 .730
Normal Distribution of data is considered an important
condition to using parametric tests. However, if the sample is
more than 30 items, the normal distribution test can be
overlooked according to the central limit theory.
6. Data Analysis and Discussion
First: Statistical distribution of the study sample
(1). Distribution of the study sample according to
academic qualification
The following table shows distribution of the study sample
according to academic qualification, in which it is evident
that 58.7%(81 people) of the sample have a Bachelor’s
Degree, while 41.3% (37 people) of the sample have a
Masters Degree.
Table 5. Distribution of the study sample according to academic qualification.
Education Frequency Percent
Bachelor 81 58.7
Master 57 41.3
Total 138 100.0
(2). Distribution of the study sample according to major
The following table shows the distribution of the study
sample according to their major. It is evident that 37.7% (52
people) of the sample are majored in accounting, 13% (18
people) economics, 39.1% (54 people) business
administration and 10.1% (14 people) banking and finance.
Table 6. Distribution of the study sample according to major.
Major Frequency Percent
Accounting 52 37.7
Economics 18 13.0
Business administration 54 39.1
Banking and Finance 14 10.1
Total 138 100.0
(3). Distribution of the study sample according to years of
experience in accounting practice
The following table shows the distribution of the study
sample according to years of experience in practicing
accounting. It is evident that 18.8% (26 people) have less
than 5 years of experience in practicing accounting, 10.9%
(15 people) have 5 to 10 years of experience in practicing
accounting, 35.5% (49 people) have 10 to 15 years of
experience in practicing accounting, 34.8% (48 people) have
more than 15 years of experience in practicing accounting.
Table 7. Distribution of the study sample according to years of experience in accounting practice
Years of experience Frequency Percent
0 – 5 years 26 18.8
5 – 10 years 15 10.9
10-15 years 49 35.5
15 years and above 48 34.8
Total 138 100.0
Journal of Finance and Accounting 2019; 7(2): 32-39 36
(4). Distribution of the study sample according to their job
position.
The following table illustrates the distribution of the
sample according to their job position. It is evident that
30.4% (42 people) are managers, 15.2% (21 people) are
heads of departments, and 54.3% (75 people) are employed
at the accounting departments of their banks.
Table 8. Distribution of Sample According to Job Position.
Job Position Frequency Percent
Manager 42 30.4
Head of department 21 15.2
Managerial employee 75 54.3
Total 138 100.0
Second: Results of analyzing domains of the study and
testing its hypotheses.
(1). Analyzing results relative to the first domain:
Awareness of Social Responsibility
The following table shows results of the statistical analysis
of items in the first domain, Awareness of Social
Responsibility, where the mean, standard deviation, relative
weight, level of approval and order of each item were
calculated. Also, the One Sample T-Test was used to
determine the relevance of the responses to the value (3)
which reflects neutrality.
Table 9. Statistical Analysis of Items in the First Domain
No Items Mean Std. Dev Rel.
Weight T-test Sig
Approval
level Order
1.
The sole responsibility of the project is production of goods
and services in order to gain profit and contribute to the public
well-being.
1.55 .705 31.0% 24.140 .000 Very low 6
2.
Social responsibility is a form of social solidarity which
depends on good initiatives from companies with the absence
of legal obligation measures.
4.43 .578 88.6% 29.012 .000 Very high 5
3.
The social impact of a project’s economic activities makes it
socially responsible, being an operating economic unit
(responsibility for social impact of economic activity).
4.49 .595 89.7% 29.338 .000 Very high 2
4.
Social responsibility is the commitment of owners of
economic activities in contributing in sustainable development
by working with the local community to improve people’s
standard of living in a way which serves both economy and
development simultaneously.
4.46 .581 89.1% 29.452 .000 Very high 3
5.
Social responsibility of organizations is its mechanism through
which social, environmental and economic interests and issues
merge in making decisions and strategies.
4.44 .616 88.8% 27.487 .000 Very high 4
6.
The presence of the ethical investor concept and the socially
acceptable project increases the importance of measuring
social performance.
4.52 .582 90.4% 30.706 .000 Very high 1
All Items 3.98 .356 79.6% 32.384 .000 High
The first hypothesis states: Managements of banks are not
aware of the concept of social responsibility. The mean for
the sample study responses for all items of the first domain,
Awareness of Social Responsibility, is 3.98 out of 5. This is
higher than the neutral value (3); and the value of calculated
T test equals to 32.384, which is higher that tabulated T at the
significance level 1%. This means that there is an addition of
statistical significance to the neutral level in the average
responses of the members of the sample; consequently, the
first hypothesis is not true. This means that managements of
banks in Lebanon are aware of the concept of social
responsibility.
(2). Analyzing results relative to the second domain:
Potentials of Applying SRA
The following table shows results of the statistical analysis
of items in the second domain, Potentials of Applying Social
Responsibility Accounting, where the mean, standard
deviation, relative weight, level of approval and order of each
item were calculated. Also, the One Sample T-Test was used
to determine the relevance of the responses to the value (3)
which reflects neutrality.
Table 10. Statistical Analysis of Items in the Second Domain.
No Items Std.
Dev
Rel.
Weight T-test Sig
Approval
level Order
1. One of the reasons for not applying social responsibility is
the management’s unawareness of the concept. 4.27 .534 85.4% 27.892 .000 Very high 8
2. The bank periodically organizes training sessions for 4.31 .589 86.2% 26.139 .000 Very high 7
37 Hasan El-Mousawi and Hussein Trabulssi: Potentials of Applying Social Responsibility Accounting in the
Banking Sector in Lebanon: An Empirical Study
No Items Std.
Dev
Rel.
Weight T-test Sig
Approval
level Order
accountants to enhance their abilities and efficiency.
3. The bank encourages accountants to attend scientific and
occupational seminars and workshops. 4.33 .596 86.7% 26.280 .000 Very high 6
4. The accounting system applied in the bank is capable of
measuring social performance. 4.42 .538 88.4% 31.024 .000 Very high 5
5.
The presence of accounting modules to measure social
accounting helps in applying social responsibility
accounting.
4.43 .539 88.6% 31.123 .000 Very high 4
6.
The presence of laws and regulations that impel bank to
disclose their social performance is the only way to
implement social responsibility accounting.
4.45 .541 89.0% 31.451 .000 Very high 1
7. Banks will not be committed to disclosing their social
performance if it is their choice. 4.43 .591 88.7% 28.501 .000 Very high 3
8. The bank discloses its social performance through printed
publications. 4.44 .541 88.8% 31.336 .000 Very high 2
9. The bank discloses its social performance in reports distinct
from the usual financial reports. 4.27 .710 85.4% 20.979 .000 Very high 8
All Items 4.37 .305 87.4% 52.943 .000 Very high
The second hypothesis states: Banks in Lebanon do not
have the potentials to apply social responsibility accounting.
The mean for the sample study responses for all items of the
second domain, Aspects of Applying Social Responsibility
Accounting, is 4.37 out of 5. This is higher than the neutral
value (3); and the value of calculated T test equals to 52.943,
which is higher that tabulated T at the significance level 1%.
This means that there is an addition of statistical significance
to the neutral level in the average responses of the members
of the sample; consequently, the second hypothesis is not
true. This means that managements of banks in Lebanon have
the required potentials to apply social responsibility
accounting.
(3). Analyzing results relative to the third domain: Impact
of SRA on Quality of Financial Reports
The following table shows results of the statistical analysis
of items in the third domain, Impact of Social Responsibility
Accounting on Quality of Financial Reports, where the mean,
standard deviation, relative weight, level of approval and
order of each item were calculated. Also, the One Sample T-
Test was used to determine the relevance of the responses to
the value (3) which reflects neutrality.
Table 11. Statistical Analysis of Items in the Third Domain.
No Items Mean Std.
Dev
Rel.
Weight T-test Sig
Approval
level Order
1.
Presence of additional reports relative to social contribution
to the domain of social development contributes in
measurement and appraisal of the economic unit’s social
performance
4.43 .579 88.7% 29.115 .000 Very high 4
2.
Giving information about social contribution to financial
reports shows the importance of the role that the bank plays
in social and economic development which helps in
measuring social performance.
4.56 .616 91.2% 29.697 .000 Very high 1
3.
Enclosing a report that reflects the extent of the bank’s
commitment to its social responsibility which balances its
interests and the societies’ affects decision-makers.
4.51 .619 90.3% 28.748 .000 Very high 3
4. A bank’s disclosure of social activities affects the investors’
decision to continue dealing with the bank. 4.52 .582 90.4% 30.706 .000 Very high 2
5. A bank’s disclosure of social activities affects depositors’
decision to continue dealing with the bank. 4.39 .572 87.8% 28.559 .000 Very high 6
6.
A bank’s disclosure of social activities affects other
financial institutions’ decision to continue dealing with the
bank.
4.41 .612 88.1% 26.994 .000 Very high 5
All Item 4.47 .379 89.4% 45.55 .000 Very high
The third hypothesis states: Applying social responsibility
accounting does not affect the quality of financial reports.
The mean for the sample study responses for all items of the
third domain, Impact of SRA on Quality of Financial
Reports, is 4.47 out of 5. This is higher than the neutral value
(3); and the value of calculated T-test equals to 45.55, which
is higher that tabulated T at the significance level 1%. This
means that there is an addition of statistical significance to
the neutral level in the average responses of the members of
the sample; consequently, the third hypothesis is not true.
This means that social responsibility accounting affects the
quality of financial reports.
(4). Analyzing results relative to the fourth domain:
Importance of Developing Relation with Local Community
The following table shows results of the statistical analysis
of items in the fourth domain, Importance of Developing
Journal of Finance and Accounting 2019; 7(2): 32-39 38
Relation with Local Community, where the mean, standard
deviation, relative weight, level of approval and order of each
item were calculated. Also, the One Sample T-Test was used
to determine the relevance of the responses to the value (3)
which reflects neutrality.
Table 12. Statistical Analysis of Items in the Fourth Domain.
No Items Mean Std.
Dev
Rel.
Weight T-test Sig
Approval
level Order
1. The bank offers aids and scholarships to members of
society. 1.51 .502 30.1% 34.948 .000 Very low 9
2. The bank contributes in establishing schools and health
centers. 1.49 .607 29.7% 29.312 .000 Very low 11
3. The bank supports universities and colleges in local
communities (providing laboratories, computers, etc). 1.52 .543 30.4% 31.965 .000 Very low 8
4. The bank donates for charitable organizations, cultural
centers and sports clubs. 4.38 .545 87.7% 29.850 .000 Very high 4
5. The bank contributes in projects related to employing
unemployed labor force. 1.51 .570 30.1% 30.771 .000 Very low 9
6. The bank contributes in presenting aids and welfare to poor
families. 1.59 .549 31.9% 30.087 .000 Very low 5
7.
The bank prepares plans and programs which curb poverty
and unemployment in the local community through specific
plans and goals.
1.55 .568 31.0% 29.992 .000 Very low 6
8. The bank contributes in applying housing programs. 4.46 .501 89.3% 34.356 .000 Very high 2
9. The bank contributes in caring for children, elderly and
special needs. 1.47 .501 29.4% 35.853 .000 Very low 13
10. The bank holds projects in less developed and less
advanced areas. 1.47 .501 29.4% 35.853 .000 Very low 13
11. The bank employs people who have special needs. 1.49 .544 29.7% 32.734 .000 Very low 11
12. The bank agrees to train students of universities, colleges or
institutions during and after graduation. 4.61 .505 92.2% 37.459 .000 Very high 1
13.
The bank shares in social and environmental
demonstrations through anti-smoking, anti-drug and
environment preservation campaigns.
1.54 .501 30.7% 34.356 .000 Very low 7
14.
The bank shares in fighting managerial corruption such as
smuggling money, money laundering and illegal
investment.
4.46 .500 89.1% 34.226 .000 Very high 3
All Item 2.36 .172 47.2% 43.657 .000 Low
The fourth hypothesis states: managements of banks in
Lebanon do not develop relations with the local community.
The mean for the sample study responses for all items of the
third domain, Impact of Social Responsibility Accounting on
Quality of Financial Reports, is 2.36 out of 5. This is less
than the neutral value (3); and the value of calculated T test
equals to 43.657, which is higher than tabulated T at the
significance level 1%. This means that there is a lack of
statistical significance to the neutral level in the average
responses of the members of the sample; consequently, the
fourth hypothesis is true. This means that managements of
banks in Lebanon do not develop relations with the local
community.
7. Conclusion and Recommendations
It is evident from the above tables that managements of
banks in Lebanon are aware of the concept of social
responsibility. It is also clear that managements of banks in
Lebanon have the required potentials to apply social
responsibility accounting. In addition, the results showed that
social responsibility accounting affects the quality of
financial reports, which, in turn, affects decisions of
investors, depositors and other financial organizations. The
results also showed that managements of banks in Lebanon
do not develop relations with the local community. However,
banks agree to train students of universities, colleges or
institutions during and after graduation. Also, banks share in
fighting managerial corruption such as smuggling money,
money laundering and illegal investment. In addition, they
contribute in applying housing programs and donate for
charitable organizations, cultural centers and sports clubs.
The results of the research agree with Donaldson &
Preston (1995) in that the organization cannot go without
interacting with local communities. The results were also in
harmony with Phillips, Freeman, and Wicks (2003) in that an
organization has an ethical responsibility to some
stakeholders and to attend to their well-being. The researcher
also agreed with Borglund, De Geer, Frostensen, Lerpold and
Nordbrand, (2012) that an organization should be prepared to
share in its community and be ready to find solutions for
problems which might arise in the community when
necessary.
Based on the above findings, the researchers recommend
that legislators set laws which compel banks to disclose their
social performance, which paves the way to apply social
responsibility accounting. In addition, the existence of
accounting models to measure social performance helps in
39 Hasan El-Mousawi and Hussein Trabulssi: Potentials of Applying Social Responsibility Accounting in the
Banking Sector in Lebanon: An Empirical Study
applying social responsibility accounting. However, having
no awareness of the concept of social responsibility
accounting is one of the main reasons behind not applying it.
Moreover, The Central Bank of Lebanon (Banque Du
Liban) should hold workshops to increase awareness relative
to social responsibility accounting and train employees at the
accounting departments to apply SRA. In addition, the
ministry of finance should also offer incentives to banks
which adopt social responsibility programs.
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