Seidler’s Social Income Statement
In 1973, Seidler suggested the preparation of a social income statement which would include
the favorable and negative social effects that flow from the production process. Seidler advocated
two social income statement formats—one for a profit seeking organization and another for
nonprofit organization. For the profit seeking organization social income statement includes
socially desirable outputs such as job training, health improvement of the workers, etc., for
which no money is received, and socially undesirable outputs (costs) such as air and water
pollution, health problem caused by the product, etc., for which no payment is made. The
first one is concerned with cash inflow and the second one is concerned with cash outflow.
Cash outflow is deducted from cash inflow and the result is known as net social loss or net
contribution of the organization towards the society. The model is shown in Appendix 2.