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Social Audit and its Concept
- 1. Social Audit A Presentationby :- - Bhaavani Hardik - Pujara Sagar
- 2. It is Relativelya Newer Concept in India which has Evolved in order to Measure the Responsible Work carried out by a Company for the Society.
- 3. 1.) Basics Understanding( before starting )
- 4. • A CorporateSocial Audit is an assessment of a company's performance on the basis of corporate social responsibility objectives. • Social Audit is an Approach for Monitoring, Appraising and Measuring the Social Performance of the Business. • It Refers to the evaluation or assessment of a company’s performance against planned goals in the areas of social Responsibility.
- 5. 2.) Definitions (for Social Audit )
- 6. • Brown defines:- “ Social Audit is a commitment to Systematic Assessment of and Reporting on some Meaningful, Definable domain of a company’s activities that have Social Impact.” • In Simplest Words, “A social audit is a formal review of a company's endeavours in Social Responsibility.”
- 7. 3.) Some Pre-conditions( for Auditing )
- 8. • Social auditsare optional. It means that Companies can choose whether to perform them. • The results of the audit are not required to be released to the general public or any regulatory agency. • Negative results may be kept internal and used to identify potential improvements that can make the results of the next social audit more favourable. • There is no standard regarding what must be considered as the “Society” during the audit.
- 9. 4.) Practical Examples( in Real Life ) A Social Audit looks at Factors such as :- 1.) Company’s Record of Charitable Giving. 2.) Volunteer Activity. 3.) Energy Use. 4.) Work Environment. 5.) Worker Safety and Pay-Scale. 6.) Consumer Protection.
- 10. 5.) Activities Included( How to do a Social Audit ? )
- 11. • Identification ofthe Firm’s Activities having Potential Social Impact. • Assessment and Evaluation of the Social Costs and Social Benefit of such Activities. • Measurement of the Social Cost and Benefits. • Reporting, that is presenting in a Proper Format and Manner, the Social Performance of the Firm.
- 12. 6.) Assessment Areasof Social Audit ( Ways of Assessing Social Audit ) • Community development • Diversity • Environment • International relationships • Marketplace practices • Fiscal Responsibilities ; and • Accounting and Financial Monitoring are commonly assessed social responsibility components.
- 13. 7.) Fun Facts( about Social Audit ) • Social Audit as a term was used as far back as the 1950’s. • Howard R. Bowen developed Social Audit Concept in USA in 50’s. • Kreps Theodore J. is regarded as the Founding Father of Social Audit Concept. • It has Received Attention Recently. • First Comprehensive Social Audit was Conducted by TISCO ( TATA Iron and Steel Company Limited ) in 1980.
- 14. 8.) Features/Characteristics (of Social Audit ) • Systematic Evaluation • Measure Social Performance • Conducted on Regular Intervals • Wide Coverage • Supplement to Social Responsibility • Acts as a Guide • Subjective in Nature • Different from Commercial Audit • Difficult to Conduct • Voluntary in Character
- 15. 9.) Benefits (of Social Audit )
- 16. • Provides Datafor Comparison between Policies and Standards. Thus, Management can determine how well it is Living up to its Objectives. • Creates greater concerns for Social Responsibility throughout Organization. Employees become aware of Social Implications of their Actions. • Provides Data for evaluating the effectiveness of different types of Programmes. • It supplies cost data on Social Programmes. Based upon this, the Budget can be Prepared by the management. • It Provides Information to the Press (Media), the Public and others with regard to the social activities undertaken by the organization.
- 17. 10.) Limitations (of Social Audit ) • Complicated and Time-consuming • No Clear Methodology • Difficult to Define the Scope • Subjective in Nature • Lack Qualified Trainers • Limited Practical Utility ( Future is Uncertain )
- 18. Conclusion • Social Auditas a Concept is very Pleasing but its Practical Application raises Innumerable Questions which cannot be Answered. • Practical Application is not Possible without there being a Standard for Evaluation which cannot be set in such a case. • Social Audit can never be made a Compulsion even though it is Righteous and Beneficial for all of us.
- 19. The End…….. Hope toSee you Soon Again…….