Saxion University Of Applied Science

Abstract

Purpose Social and environmental accounting tools were established to measure the socio-economic and environmental value provided and reduced by companies in a style that business executives can understand and apply to influence critical business decisions using quantitative data. Based on the True Value by Klynveld Peat Marwick Goerdeler (KPMG) and Social and Human Capital Protocol by the World Business Council on Sustainable Development (WBCSD) methodology, this social and environmental accounting tools tries to provide a way to measure in financial terms the value generated and deducted by a company for society. This research discusses the reasons behind creating the true value by KPMG and the social and human capital protocol by WBCSD and provides examples of their application to company. Design/ methodology/approach This research will explain the presentation of the true value by KPMG and the social and human capital protocol by WBCSD to company. To make it easier to understand, this research uses a railway company in the Netherlands named Nederlandse Spoorwegen (NS) as an example of a company that will be implemented using the true value by KPMG and the social and human capital protocol by WBCSD. This research is based on a document evaluation of the true value by KPMG and the WBCSD social and human capital protocol detailing its methodology, previous research journals on social and environmental accounting and NS company newly report which is in 2020. Findings Although both true value by KPMG and the social and human capital protocol by WBCSD to company are social and environmental accounting tools, the true value by KPMG and the social and human capital protocol by WBCSD has a different way of measuring social and environmental issues within the company. Many companies have already implemented these two tools. Companies that adopt the true value by KPMG and the social and human capital protocol by WBCSD and follow it consistently will get benefit from being able to identify the social and environmental values generated by the company.