1.1 A brief history of social accounting: The concept of social accounting originated in different forms by Adam Smiths in 1776, Later on, Karl Marks and Engel also expressed their views about social costs in 1844. Karl Marx went to the extent of saying “under this free trade the whole severity of the economic laws will fall upon the workers”. Pigou in 1920 also elaborated the divergence of social and private costs. Economists like E.H. Chamberlin in 1945, Joan Robinson in 1960 expressed their concerns directly or indirectly about the social costs of an industrial organization. Social accounting is that branch of accounting, which is, concerned with the functioning of social system as a whole. It may be considered as the accounting for community. The areas covered by social accounting include pollution control, community relations, product quality, plant safety, equal employment opportunity, charitable contributions, employee benefits, and responsiveness to consumer complaints.