'Social Audit'

Social Audit is a process of evaluating a firm's various operating procedures, code of

conduct, and other factors to determine its effect on a society. The goal is to identify
what, if any, actions of the firm have impacted the society in some way. A social audit
may be initiated by a firm that is seeking to improve its cohesiveness or improve
its image within the society. If the results are positive, they may be released to the public.
For example, if a factory is believed to have a negative impact, the company may have a
social audit conducted to identify actions that actually benefit the society.

A social audit looks at factors such as a company's record of charitable giving volunteer
activity, energy use, transparency, work environment and worker pay and benefits to
evaluate what kind of social and environmental impact a company is having in the
locations where it operates. 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.

A formal review of a company's endeavors in social responsibility. A social audit looks at

factors such as a company's record of charitable giving, volunteer activity, energy use,
transparency, work environment and worker pay and benefits to evaluate what kind of
social and environmental impact a company is having in the locations where it operates.
Social audits are optional--companies can choose whether to perform them and whether
to release the results publicly or only use them internally.

In the era of corporate social responsibility, where corporations are often expected not
just to deliver value to consumers and shareholders but also to meet environmental and
social standards deemed desirable by some vocal members of the general public, social
audits can help companies create, improve and maintain a positive public relations image.
Good public relations is key because the way a company is perceived will usually have
an impact on its bottom line.

Assessment Guidelines for An auditor performing social Audit

Community development, diversity, environment, international relationships, marketplace

practices, fiscal responsibilities, and accounting and financial monitoring are commonly
assessed social responsibility components. Social responsibility includes the way a
company treats and proactively contributes to its community, promotes fair working
conditions and a nondiscriminatory environment, conveys transparent and honest
accounting reports, and generally earns a reputation of trust and integrity in the markets it
serves.