A review of third sector reporting frameworks: communicating value created in small and micro social enterprises

The need for social reporting in third sector organisations such as social enterprises is widely acknowledged. However there is little agreement on how best to approach this. While various social reporting frameworks are available, the resource constraints (primarily time and money) of third sector organisations, many of which are small or micro enterprises, are often overlooked in the development of these frameworks. Accordingly, the purpose of this chapter is to review the appropriateness of available social reporting frameworks, in view of social enterprises’ hybrid nature, and often limited resources. A review of organisational legitimacy and financial reporting principles underscores the need for a general purpose reporting framework appropriate for social enterprises’ dual objectives, limited resources, and their diverse range of stakeholders. The contribution of this paper is the development and application of a relatively simple and accessible social reporting framework facilitating accountability and informed decision-making by both internal and external stakeholders