The document discusses social auditing, which involves systematically evaluating an organization's social performance. Social auditing discloses a company's involvement in socially oriented activities that benefit employees and the community, as well as efforts to prevent environmental pollution. The objectives of social auditing are to improve the business, pay fair dividends and wages, reduce prices, and provide bonuses and community assistance. Social auditing is needed for social consciousness, monitoring unethical practices, accountability, performance evaluation, and as an informative system. It involves regular evaluation of social activities and has a wide coverage as a supplement to social responsibility.

1. SOCIAL AUDITING
BY,
MATHEW .V . JOSEPH
MBA
MARIAN COLLEGE,KUTTIKANAM,
KERALA

2. INTRODUCTION
• The first use of the term "social audit" is generally
attributed to George Goyder in the 1950s
• Social audit is a technique used for finding out how
the social responsibilities are being discharged by a
business unit.
• Used for judging social responsive ness of
companies.
• A performance appraisal technique –evaluates
performance in relation to ecological balance,
welfare employees, consumer protection,
community service, etc.

3. SOCIAL AUDIT
social audit refers to the systematic evaluation of
an organization’s social performance. It discloses
the company’s involvement in socially oriented
activities, activities taken for the well-being of the
employers of the concern, activities as to
prevention of environment from pollution etc.

4. Objectives of Social Auditing
•Principal objectives.
•Secondary objectives.

5. Principal Objectives of Social
Audit
1. The extension, development and improvement
of the company’s business and building up of its
financial independence.
2. The payment of a fair and regular dividend to
the shareholders.
3. The payment of fair wages under the best
possible conditions to the worker.
4. The reduction of prices to the consumers.

6. Secondary Objectives of
Social Audit
1. Provision of a bonus to the workers.
2. Assist in promoting the amenities of the locality.
3. Assist in developing the industry in which the
firm is a member.
4. Promote education, research and development
in the techniques of the industry.

7. Need for Social Audit
•Social consciousness
•Monitor unethical practice
•Social accountability
•Informative system
•Evaluating performance

8. FEATURES OF SOCIAL AUDIT
• Systematic evaluation
• Measure social performance
• Conducted on regular intervals
• Wide coverage
• Supplement to social responsibility
• Acts as a guide

9. Category of Information to
be disclosed
1. Community Involvement: Under this category, socially
oriented activities that are primarily of benefit to the general
public must be specified.
2. Human Resources: Social performance directed to the well-
being of the employees comes under this category.
3. Physical Resources and Environmental Contribution: It refers
to the activities directed towards alleviating or preventing
environmental deterioration. It, also Includes the adherence to
the law and going beyond it in areas such as air , water quality
etc. Conservation of scarce resources and the disposal of solid
waste also come under this category.
4. Production or Service Contribution: It is mainly concerned
with the impact of company’s product or service on society. This
includes product quality, packaging, advertising, warranty
provisions and product safety.

10. Persons Benefited by the
Disclosure of information
• Financial Institutions.
• Shareholders.
• Academic Institutions and Consultants.
• Government.
• Trade Unions and Political leaders.
• Environmentalists.