METHODICAL APPROACH TO IMPROVING ACCOUNTING SUPPORT FOR MANAGING COSTS AND RESULTS OF CORPORATE SOCIAL RESPONSIBILITY OF ENTERPRISES

Abstract

The article is devoted to the development of approaches for improving the accounting policy of enterprises, which will enable not only the tracking of CSR-related costs in the necessary analytical dimensions but also the evaluation of their effectiveness for managerial decision-making. It is substantiated that the enhancement of corporate social responsibility (CSR) accounting has significant and strategic importance for the effectiveness of management decisions and the quality of social initiative implementation. The article identifies key issues in accounting for the costs and outcomes of socially responsible activities, including the lack of separate identification of CSR-related costs, fragmented accounting practices, the absence of a comprehensive accounting model covering all three CSR components, and the biased recognition and evaluation of CSR outcomes in accounting systems. The necessity of implementing a systematic approach to the accounting of CSR initiative costs is justified, particularly in the context of growing stakeholder demands for corporate social responsibility. An integration of financial and managerial accounting is proposed to ensure objective accounting, effective control, and analysis of socially responsible activity costs. Additionally, the article suggests the allocation of specialized responsibility centres within the managerial accounting structure. Key elements that should be defined in the accounting policy with respect to CSR are presented. The necessity of capitalizing the incurred CSR costs and recognizing them as intangible assets is substantiated. A detailed classification of costs is proposed to enhance management effectiveness, based on a three-dimensional matrix model for classifying CSR-related costs. This approach involves the complex classification of costs according to three criteria: functional (by activity area), duration (short-term or long-term), and nature (direct or indirect). Furthermore, the article presents an approach to developing a system of analytical accounts for recording CSR-related costs and outcomes. Such a system should be multi-level and capable of reflecting CSR costs comprehensively. The main approaches to accounting for the economic, environmental, and social components of CSR are also proposed.