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Social Audit PDF
Social Audit PDF
Social Audit PDF
Objectives
After reading this unit you should be able to:
! explain the meaning of social audit;
! state the scope and objectives of social audit;
! emphasise the need for social audit ;
! identify different types of social audit;
! highlight key developments in social transparency and reporting
Structure
16.1 Introduction
16.2 Scope and Objectives
16.3 CSR and Corporate Accountability
16.4 Types of Social Audit
16.5 Key Developments in Transparency and Reporting
16.6 Summary
16.7 Key Words
16.8 Self Assessment Questions
16.9 Further Readings
16.1 INTRODUCTION
The term ‘social audit’ may be interpreted in several ways. As far as common
understanding goes, it is an essential assessment of how well a company has
discharged its social obligations. However experts see it as a systematic and
comprehensive evaluation of an organization’s ‘social performance’ which is
interpreted as organizational efforts in enriching the general welfare of the whole
community and the whole society.
The need for social audit arises because of various reasons. In order to reach the
objective of enriching economic wealth for the shareholders, the firm do it at the cost
of social and environmental disorder. And since many would not take into account the
social costs of such negative implications, their prices do not reflect the real cost. The
organizations do it more because of competitive reasons. However if the larger
interest of society is to be preserved, there has to be some consideration for social
good.
The company is expected to behave and function as a socially responsible member of
the society like any other individual. It cannot shun moral values nor can it ignore
actual compulsions. There is a need for some form of accountability on part of the
management which is not only limited to shareholder alone. In modern times, the
objective of business has to be the proper utilization of resources for the benefit of
others. A profit may still be a necessary part of the total picture but it sould not be the
only purpose. The company must accept its obligation to be socially responsible and
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to work for the larger benefit of the community.
Society expects businesses to share the fruits of progress and growth. Moreover, the Social Audit
social concern by the organization proves to be an asset for them in the long run
especially under environmental distress because of the goodwill and the positive
image earned all through these years.
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Activity 1 Social Audit
Enumerate examples where you see firms calculating the wealth generated, without
taking into account the social and environmental costs.
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Illustrate few examples of Indian companies who in your opinion care for
environmental protection or are driven by ethical norms or are conscious of extending
equal opportunity to its employees while pursuing their commercial activity of
generating wealth.
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16.6 SUMMARY
Social Audit in business intends to examine an organization’s efforts in enriching the
general welfare of the whole community and the whole society. In modern times, the
objective of business is to provide benefits to others and the society expects
businesses to share the fruits of progress and growth. Corporate accountability 37
Corporate Social encompasses the systems which a company establishes in order to develop policies,
Responsibility
indicators, targets and processes to manage the full range of its activities towards
society. Demand for increased corporate accountability today comes from all sectors
and various types of social audit system is being developed in order to take such
accounts. Few key developments enabled by technology and information revolution
has broadened the scope for such an audit to be made within organizations and shared
in public.