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The purpose of this study is to contribute to the discussion surrounding the definition of accounting proposed by Carnegie et al. (2021a, 2021b) and further elaborated by Carnegie et al. (2023) from/under an institutionalist political-economy (IPE) based foundation and to specifically extend this approach to the arena of social and environmental accounting (SEA).

By adopting an IPE approach to SEA, this study offers a critique of the use of the notion of capital to refer to nature and people in SEA frameworks and standards.

A SEA framework based on the capabilities approach is proposed based on the concepts of human capabilities and global commons for the purpose of preserving the commons and enabling the flourishing of present and future generations.

The proposed framework allows the engagement of accounting community, in particular SEA researchers, with and contribution to such well-established initiatives as the Planetary Boundaries framework and the human development reports initiative of the United Nations Development Programme.

Based on the capability approach, this study applies Carnegie et al.’s (2023) framework to SEA. This new approach more attuned to the pursuit of sustainable human development and the sustainable development goals, may contribute to turning accounting into a major positive force through its impacts on the world, expressly upon organisations, people and nature.

The Third Sector has been receiving increasing attention from society, including academics, due to its importance in the face of the lack of government responses to many of the social problems that affect contemporary societies. Theoretically, the State is supposed to highlight the importance of the services provided by Social Solidarity Institutions, given their proximity to the beneficiaries, the efficiency in the distribution of resources and their innovative attitude towards social problems and needs. As a logical consequence, society is witnessing an increase in the participation of the private sector in social issues and a greater professionalisation of the Third Sector in the search for sustainability. Within the Third Sector, Social Solidarity Institutions play a very important role, acting as social actors. Within the environment of Social Solidarity Institutions, the Misericórdias also play a very important role. ‘Misericórdia’ is a non-profit institution that takes a form of charity, very popular in some countries, such as Italy and especially in Portugal. However, there are few studies on the governance conditions of this type of institution. In addition, it is possible to discuss whether there is any study that focuses specifically on this type of analysis. This study fills the empirical gap in the existing literature, providing an insight into the ways of adopting governance practices and principles within these institutions, which over five centuries of existence have continuously worked towards a more just, inclusive and supportive society.