The document presents an overview of social audits, highlighting their role in assessing a company's social responsibility performance. It defines social audits, outlines their voluntary nature, and discusses practical applications, assessment areas, benefits, and limitations. Key points include the lack of standardization and the challenges faced in their implementation.

1. Social Audit
A Presentation by :-
- Bhaavani Hardik
- Pujara Sagar

2. It is Relatively a 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 Corporate Social 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 audits are 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 of the 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 Areas of 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 Data for 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 Audit as 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 to See you Soon
Again…….