Beyond Profits: India’s Journey in Social Accounting and Responsibility

Abstract

Social Cost-Benefit Analysis (SCBA) is a key evaluative tool used to determine the economic and social feasibility of proposed projects from a societal perspective. It supports national planning by guiding resource allocation across sectors. Institutions such as UNIDO and OECD have developed methodologies for quantifying social costs and benefits. This paper explores the emergence and application of social accounting in India, particularly in the aftermath of the Bhopal Gas Tragedy, which acted as a catalyst for institutional reforms. The Government of India, along with leading corporates—such as Tata Group, Infosys, ITC, Bharti Enterprises, and Indian Oil—have taken significant strides in integrating Corporate Social Responsibility (CSR) into business practices. The Companies Act, 2013, mandates eligible companies to invest 2% of their average net profits in CSR, reinforcing social accountability. This paper analyzes current trends, frameworks, and corporate initiatives contributing to social accounting practices in India.