ABSTRACT

The previous three chapters have in turn considered the role of business in society, social accounting and stakeholder identification and stakeholder performance measurement. The argument has been made that businesses, or organizations more generally, should be held accountable to the societies within which they operate. Therefore a number of metrics and tools of analysis have been considered in order to suggest how corporate social performance can be measured. In chapter 3 The Corporate Report was discussed as an interesting development from the accounting profession. Value added statements were commonly reported by UK businesses in the late 1970s and, as discussed in chapter 3, they were argued to show organizational truths that the more traditional profit and loss account could not. In fact it was argued that the value-added statement had the power to demonstrate the co-operative nature of production and the show how the fruits of this production was then distributed between the contributors. It is for these reasons that value added analysis is considered to be an essential part of corporate social performance within this work. In order to demonstrate the power of this analysis this chapter uses the electricity industry in England and Wales as an illustrative case. This industry is essential to the every day life of a modern society such as the UK and therefore it makes an especially interesting case to study. The remainder of this chapter is organized as follows. The next section introduces the case study industry briefly discussing its history and the period under study. There then follows a detailed value added analysis for the period from privatization in 1990/1 to 1997.