SOCIAL AUDIT

PRESENTED BY-
RAUNAK RAJ--2141303103
ASHIT SAHOO--2141303104
 DEFINITION & CONCEPT
“A social audit is a formal review of a company’s procedures
and code of conduct regarding social responsibility and the
company’s impact on society”.

• The concept of “Social Audit” has been linked to “Corporate Social

Responsibility”(CSR)
• CSR is a management concept whereby companies integrate social
and environmental concerns in their business operations and
interactions with their stakeholders.
 COMPONENTS OF SOCIAL AUDIT
1. Social Component=The social component is concern with the relationship of the company with
society and the employees working in it.
2. Economic Component=Economic indicators of the organisation must be audited and required
actions should be consider if there is a case of any irregularity.
3. Health And Educational Component=The measurement of the health and educational facility in
the organization. Whether the required safety and health measures are taken by the
organization in the workplace.
4. Environmental Component=Whether the production process or working procedure is harmful
to the environment. Whether the working process of the organization is polluting the
environment and what measures are taken by the organization to minimize the impact on the
environment.
5. Political Component=The political environment in the organization is audited, which is the
analysis of the relationship between management and employees, and manager and workers of
the organization.
 How To Conduct A Social Audit?

1. Define the scope

2. Choose the people participating in the process
3. Define the key issues and a data collection procedure for
those issues
4. Setting criteria and standards
5. Assessment and Analysis
6. Generate a report for findings and verify it
7. Present the report
 IMPORTANCE OF SOCIAL AUDIT
1. Encourages Ethical Decision Making=Social auditing encourages ethical
decision-making by promoting transparency and accountability.
2. Social Impact Measurement=Social auditing helps measure the social impact of
business activities and identify both positive and negative effects.
3. Public Accountability=They enhance public accountability by making social and
environmental performance data accessible to the public, allowing for scrutiny
and feedback
4. Helps to reduce Social Inequalities=Social auditing can help reduce social
inequalities by promoting fair labor practices and community development
initiatives
5. Helps to identify areas for improvement=Social audit reports can help companies
identify areas for improvement in their operational and social responsibility
practices.
 Scope Of Social Audit
1. Corporate Social Responsibility
2. Equal Opportunity
3. Ethical Business Practices
4. Future Planning
5. Environmental protection
 OBJECTIVES OF SOCIAL AUDIT
1. Evaluate the effectiveness and impact of social
programs.
2. Identify areas for improvement in social services.
3. Ensure compliance with legal and ethical standards.
4. Increase transparency in the use of public resources.
5. It evaluates social and economic outcomes of
initiatives.
 PRINCIPLES OF SOCIAL AUDIT

TRANSPARENCY
TT & OBJECTIVITY TIMELINESS
Accountability

ACTION CREDIBILITY
SUSTAINABILITY
ORIENTED
 ADVANTAGES OF
SOCIAL AUDIT
1. Enhancing accountability
2. Promoting transparency
3. Measuring social impact
4. Identifying areas for
improvement and change
5. Supporting compliance with
regulatory reqirements
DISADVANTAGES OF
SOCIAL AUDIT
1. Conducting a social audit can be
expensive
2. It is a time consuming process
3. It has a limited scope
4. Difficulty in measuring the impact
5. Lack of expertise
THANK YOU