Social Statements: A Proposal for a Social-Value Balance Sheet and Profit-Loss Statement

Takeshi Kato, Yoshinori Hiroi, Sae Horiguchi, Tetsushi Koike and Shingo Hashimoto

Papers from arXiv.org

Abstract: This study proposes a new set of a firm's "social statements" that represent social value, in contrast to conventional financial statements that represent economic value. Financial statements externalize social and environmental costs, and this externalization is one of the primary causes of contemporary social problems. Insights from anthropology, philosophy, and sociology suggest that social value is grounded in social relationships, joint actions, and communication. Building on this understanding, we assign numerical indicators of a firm's social relationships with external stakeholders to the items of a balance sheet and a profit-loss statement as social statements. This approach enables unified measurement units and simplified calculation compared with existing methods for evaluating social impact or social value. Moreover, similar to financial statements, social statements allow firms to be assessed using managerial indicators such as equity ratios and profit margins. The significance of social statements lies in incorporating social value--alongside financial value--into corporate decision-making, and in encouraging social transformation as firms publicly articulate their social value.

Date: 2026-06
References: Add references at CitEc
Citations:

Downloads: (external link)
https://arxiv.org/pdf/2606.31188 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2606.31188

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().