Social Accounting in the Small Medium Enterprises

Abstract

This study examines social accounting is proxied by social capital and social contribution to the internal control structure. This study emphasizes to the internalization aspect of the application of social accounting into the company's overall internal function which functions as a corporate decision making. Sampling were 59 small and medium businesses in the Central Java province. Sampling was done by purposive sampling method. Data were tested using multiple linear regression. Based on the results that involvement of small and medium businesses in the province of Central Java has not been high. Results of the regression analysis showed that social contribution variable had a significant positive effect on the internal control. But the social capital variable does not affect to the internal control structure. Implication of this study that both small and large companies must consider training, funding and user involvement as indicators of social accounting to be internalized into internal control structure.