The Role of Accounting in Corporate Social Responsibility and ESG Disclosure

Abstract

Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) disclosures have become increasingly important in contemporary business practices. This study explores the pivotal role of accounting in facilitating effective CSR and ESG disclosures. By examining the integration of ESG metrics into accounting frameworks, the research identifies the challenges and opportunities associated with accounting for CSR activities. We analyze how accounting practices can enhance transparency, accuracy, and reliability of ESG reporting, and investigate the impact of such disclosures on stakeholder trust and corporate reputation. Utilizing a mixed-methods approach, including case studies of leading corporations and surveys of accounting professionals, the study reveals key factors influencing the effectiveness of ESG disclosure and proposes best practices for accounting professionals. The findings underscore the necessity for standardized ESG reporting frameworks and highlight the evolving role of accountants as vital contributors to corporate sustainability efforts.