A
social audit is essentially a review of the public-interest, non-profit, and social activities of a company. The objective is to enable a firm to assess its performance in relation to society in order to identify ways to improve, or to evaluate specific kinds of social performance, such as environmental impact (an environmental audit). It is usually performed for internal benefit and typically is not released to the public.
Social auditing entails:
- "Assessing the physical and financial gaps between needs and resources available for local development.
- Creating awareness among beneficiaries and providers of local social and productive services.
- Increasing efficacy and effectiveness of local development programmes.
- Scrutiny of various policy decisions, in view of stakeholder interests and priorities, particularly those of the rural poor.
- Estimation of the opportunity cost for stakeholders of not getting timely access to public services."
"
Social auditing creates an impact upon governance. It values the voice of stakeholders, including marginalized/poor groups whose voices are rarely heard.
Social auditing is taken up for the purpose of enhancing local governance, particularly for strengthening accountability and transparency in local bodies."
(Srivastava, K. B,
Training Module on Social Audit,
A Handbook for Trainers on Participatory Local Development, Bangkok: FAO Regional Office for Asia and the Pacific, 2003, visited 2011-06-22)
The Process
"
Social auditing information is collected through research methods that include social bookkeeping, surveys and case studies. The objectives of the organisation are the starting point from which indicators of impact are determined, stakeholders identified and research tools designed in detail.
The collection of information is an on-going process, often done in 12-month cycles and resulting in the organisation establishing social bookkeeping and the preparation of an annual
social audit document/report."
(Boyd, G.,
Social Auditing – a Method of Determining Impact,
Caledonia Centre for Social Development, visited 2008-06-22)
The Importance and Credibility of Social Auditing
"Over the past decade,
social auditing has taken on an important new role in the monitoring of labour and environmental standards. It has grown rapidly in recent years, involving various companies, consulting firms, labour unions and non-governmental organizations (NGOs) in industries such as forestry, agriculture, clothing and footwear, and textiles. The combined pressure of campaigns by trade unions and NGOs, negative media attention and an increasingly vocal public concern about working conditions have prompted some companies to have their factories audited. Concern about the credibility of such audits has been a major issue in the public debate about corporate social responsibility."
(Hunter, P. and M. Urminsky,
Labour Education, Corporate Social Responsibility: Myth or Reality?,
Social Auditing, Freedom of Association and the Right to Collective Bargaining, ILO, no. 130, 2003, p. 49-56, visited 2011-06-22)
