Table of Contents

 GLOBAL SOCIAL AUDIT STANDARDS:...........................................................................2

 Objectives of social audit.........................................................................................................2

 Advantages of social audit.......................................................................................................3

 Auditing Process.......................................................................................................................3

 SOCIAL AND ENVIRONMENTAL AUDIT:........................................................................3

 REPORTING OF SOCIAL PERFORMANCE.......................................................................5

 BALANCED SCORECARDS.................................................................................................5

 TRIPLE BOTTOM LINE........................................................................................................6

  GLOBAL SOCIAL AUDIT STANDARDS:
A social audit is a way of measuring, understanding, reporting and ultimately improving an
organization's social and ethical performance. A social audit helps to narrow gaps between
vision/goal and reality, between efficiency and effectiveness.

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.

The key difference between development and social audit is that a social audit focuses on the
neglected issue of social impacts, while a development audit has a broader focus including
environment and economic issues, such as the efficiency of a project or programmed.

 Objectives of social audit

1. Assessing the physical and financial gaps between needs and resources available for local
development.
2. Creating awareness among beneficiaries and providers of local social and productive
services.
3. Increasing efficacy and effectiveness of local development programs.
4. Scrutiny of various policy decisions, keeping in view stakeholder interests and priorities,
particularly of rural poor.
5. Estimation of the opportunity cost for stakeholders of not getting timely access to public
services.
  Advantages of social audit
a) Trains the community on participatory local planning.
b) Encourages local democracy.
c) Encourages community participation.
d) Benefits disadvantaged groups.
e) Promotes collective decision making and sharing responsibilities.
f) Develops human resources and social capital

 Auditing Process

 SOCIAL AND ENVIRONMENTAL AUDIT:

A social audit is a formal review of a company's endeavors, procedures, and code of conduct

regarding social responsibility and the company's impact on society. A social audit is an

assessment of how well the company is achieving its goals or benchmarks

for social responsibility.
Environmental audit is a general term that can reflect various types of evaluations intended to

identify environmental compliance and management system implementation gaps, along with

related corrective actions. In this way they perform an analogous (similar) function to

financial audits.

Ideally, companies aim to strike a balance between profitability and social responsibility. A

social audit is an internal examination of how a particular business is affecting society. The audit

helps companies to determine if they're meeting their objectives, which may include measurable

goals and benchmarks. A social audit serves as a way for a business to see if the actions being

taken are being positively or negatively received and relates that information to the company’s

overall public image.

In the era of corporate social responsibility, corporations are often expected to deliver value to

consumers and shareholders as well as meet environmental and social standards. Social audits

can help companies create, improve, and maintain a positive public relations image. For many

companies, a good public perception helps foster a positive image of the company and ultimately

reduce negative impacts on earnings from bad press.

As the name implies, these audits are intended to review the site's/company's legal compliance

status in an operational context. Compliance audits generally begin with determining the

applicable compliance requirements against which the operations will be assessed. This tends to

include federal regulations, state regulations, permits and local ordinances/codes. In some cases,

it may also include requirements within legal settlements.

Compliance audits may be multimedia or programmatic. Multimedia audits involve identifying

and auditing all environmental media (air, water, waste, etc.) that apply to the
operation/company. Programmatic audits (which may also be called thematic or media-specific)

are limited in scope to pre-identified regulatory areas, such as air.

 REPORTING OF SOCIAL PERFORMANCE

Framework for social enterprise to measure and report on social performance. Reviewing social
reporting practice, and concepts central to financial reporting, this paper presents a framework
for social performance reporting in the context of social enterprises. A Statement of Social
Performance and is developed, through consideration of social reporting approaches, influences,
and issues in third sector and private sector organizations. This Statement is applied in the
context of an employment and training social enterprise, demonstrating its application in
practice.

 BALANCED SCORECARDS
The balanced scorecard is a strategy performance management tool – a semi-standard
structured report, that can be used by managers to keep track of the execution of activities by the
staff within their control and to monitor the consequences arising from these actions.

The phrase 'balanced scorecard' primarily refers to a performance management report used by a
management team, and typically this team is focused on managing the implementation of a
strategy or operational activities – in a recent survey 62% of respondents reported using
Balanced Scorecard for strategy implementation management, 48% for operational management.
Balanced Scorecard is also used by individuals to track personal performance, but this is less
common – only 17% of respondents in the survey using Balanced Scorecard in this way,
however it is clear from the same survey that a larger proportion (about 30%) use corporate
Balanced Scorecard elements to inform personal goal setting and incentive calculations.

The critical characteristics that define a balanced scorecard are:

 its focus on the strategic agenda of the organization concerned

 the selection of a small number of data items to monitor
 a mix of financial and non-financial data items.
  TRIPLE BOTTOM LINE
The triple bottom line (or otherwise noted as TBL or 3BL) is an accounting framework with
three parts: social, environmental (or ecological) and financial. Some organizations have adopted
the TBL framework to evaluate their performance in a broader perspective to create greater
business value. Business writer John Elkington claims to have coined the phrase in 1994