1. Managerial Accounting
and
Corporate Responsibility
Ahmed El Zayaty, PhD

2. Scope of Managerial Accounting:
Traditionally managerial accounting books
focus on budgeting, Cost-Volume-Profit analysis,
decision-making, and performance evaluation.
The concept of “Balanced Scorecard” has been
introduced recently as a powerful managerial
tool. See hand-out.

3. • Balanced Scorecard and Social Responsibility:
Management should integrate social
responsibility into corporate strategy. Then
expand the balanced scorecard to include
social responsibility as one of the strategic
objectives.

4. Stakeholders Theory for Corporate Social
Responsibility:
Goodpaster (1991) indicated the insoluble
conflict between the Fiduciary duty of
management to shareholders and the moral
obligation to run the companyethically. The
former may lead to business without ethics,
while the later may lead to ethics without
business.

5. However, the literature on stakeholders theory
has not contrasted it with the shareholders
theory in that fashion. The literature suggests
that stakeholders theory forces decision makers
to reflect on the purpose of the company in a
broader societal context. Management should
consider that business and society as
intertwined. Helping society helps business to
grow and that helps sustainability of society.

6. Managerial Accounting and The Concept of
Stakeholders:
Management are required to involve
stakeholder’s claims into a business logic. For
example:
- Employee loyalty can be considered as an
intangible asset.
- Community support is invaluable success
factor. and so on.

7. Incorporating Corporate Responsibility into
Course content.
Cost-Volume-Profit Analysis:
Accounting vs. Economic:
The use of opportunity cost concept.
The use of Economic Value Added concept.
( See hand-out)

8. - Budgeting and social responsibility.
- Decision making and social responsibility.
- Total quality Management and Social
responsibility.
- See Hand out.

9. Expansion of Course Learning Outcomes:
Course learning outcomes has been expanded
to include management role in corporate social
responsibility. Performance evaluation
measurements have been extended to include
measurements of corporate contribution toward
sustainable business and society.

10. Teaching Methodology:
A Case study approach and simulation are used
to highlight the role of corporate social
responsibility and its implication for corporate
financial performance.