Social Value Added; A New Model for Developing Sustainability Accounting

Document Type: Original Article


1 PhD Accounting Student, Semnan Branch, Islamic Azad University, Semnan, Iran.

2 Accounting Assistant Professor, Semnan Branch, Islamic Azad University, Semnan, Iran.

3 Professor, Faculty of Mechanical Engineering, Semnan University, Semnan, Iran.



Sustainability accounting by presenting a holistic view of the organization activities and providing a balanced view of its economic, social and environmental impacts and benefits, and by presenting sustainability reporting seeks to encourage business units and investors to maintain the mutual benefits of all stakeholders in the society. Given the criticisms that researchers have had about the efficiency of sustainability reporting, the purpose of this article is to develop sustainability accounting by presenting a new model that can address the challenges in sustainability accounting and can be a good alternative to sustainability reporting. Social value-added is the sum of tangible and intangible values created and added to society by a business through technological development/change and the knowledge of its manufacturing engineers and managers. In this research, to test the proposed social value added model, Nano engine oil was selected randomly and the test was performed using paired comparison of data. The results of the research showed that social value-added statement can be an appropriate report for evaluating the economic, social and environmental performance of a business entity. Nano engine oil has a social value added of 3797.2 percent compared to regular engine oil, that 15 percent of it is related to tangible value added and 85 percent to intangible value added. 


Wikipedia. (2019), Value (ethics) definition, Available at: Accessed February 2019.
Filsaraei, M., & Tayebi, E. (2017). The relationship of the cash dividend ratio to economic value added and the value created for stockholders equity, Economic Journal, No. 5&6, pp. 21-40. (In Persian).
Mehrani, S., & Rasaiian, A. (2009). The relationship between economic value added and financial ratio of manufacturing companies in Tehran Stock Exchange. Quarterly Journal of Economic Research and Policies, No. 52, pp. 95 -116. (In Persian).
Barzegar, Gh., & Ghafari, V. (2008). Companies Accounting and Reporting Sustainability in Third Millennium, Accountant magazine, No. 202, pp. 75-85. (In Persian).
Khaki, Gh. (1997). Value added, a way to measure productivity, Institute for Educational Studies and Planning, pp. 123-124. (In Persian).
Poorzamani, Z., Arzee, H. (2016). Comparing of the Effects of EVA (Economic Value Added) Spread and EVA Momentum on Stock Return. Management Accounting, 9(29), 41-51. (In Persian).
Alinezhad, S., Banimahd, B., & Ohadi, F. (2015). The Effect of CEO Tenure on Value Added Growth of Firm. Management Accounting, 8(25), 1-11. (In Persian).
Rahnamay Roodposhti, F., Nikomaram, H., & Shahverdiani, Sh. (2007). Strategic Financial Management, (In Persian).
Bontis, N. (1999), “Managing organizational knowledge by diagnosing intellectual capital: framing and advancing the state of the field”, Intellectual Journal of Technology Management, Vol. 18 No. 5, pp. 433-462.
Hejazi, R., & Hoseini, A. (2006). Comparing of the relationship between market value add& economic value add with accounting measure in Tehran stock exchange, Economic Bulletin, No 23, pp 237-262. (In Persian).
Heidarpoor, F., & Fouladi, A.A. (2016). The Ownership Structure and Value Added of Intellectual Capital, Journal of Empirical Research in Accounting, Vol.17, pp. 79-94. (In Persian).
Rahmani, A., & Arefmanesh, Z. (2013). Intellectual Capital and its Relation with Cost of Equity, Journal of Empirical Research in Accounting, Vol.2, pp. 1-18. (In Persian).
Stewart, G. B., III. (1999). the quest for value. New York: HarperCollins Publisher.
Husted, Bryan., & Allen, David. (2007), Strategic Corporate social Responsibility and value creation among large firms, Long Range Planning, Vol 40, pp. 594-610.
Barney, JB., & Griffin, R. (1992). The Management of Organizations: Strategy, Structure, and Behavior, Houghton Mifflin: Boston, MA.
Belkaoui, R.A. (2003). "Intellectual capital and firm performance of US multinational firms: a study of the resource-based and stakeholder views". J. Intellect. Capit. 4(2): 215-226.
Krizov, C., & Allenby, B. (2004), Social Value Added: A Metric for Implementing Corporate Social Responsibility, Environmental Quality Management, pp.39-47.
Hemmati, M., Fazeli, N., & Saedodin, S. (2018). Providing a Model to Evaluate Corporate Social Responsibility by Social Value Added (Case Study: Nano-Engine Oil). Iranian Journal of Finance, 2(2), 83-102.
Moghadam, A., Akbarzadeh, A., Ziaee, H. (2017). Environmental effects of landfill sites on water resources Case Study: Taleghan Tourism Area, WRSM, pp 1-21. (In Persian).

Rezaee Kalantari, R., & Farzadkia, M. (2010). Environmental impact assessment of development (Editorial). IOH; 6 (4):4-6. (In Persian).

Karami, M., Ahmadi, H., & Karami, K. (2016). Environmental impacts assessment of construction and utilization phases of tourism projects in Karun Dam IV, Iran, Caspian J. Environ. Sci. 2016, Vol. 14 No.2 pp. 165-175.
Kijewska, A., Bluszcz, A., & Sojda, A. (2015). Value Added Statement (VAS) of Mining and Metallurgical Companies in Poland, Metabk: 54(3), pp.737-740.
Afzal, H. (2017), Value Added Statement: A Part of Social Responsibility Reporting, Journal of Finance and Accounting, Vol. 5, No. 2, pp. 74-79.