SOCIAL AND ENVIRONMENTAL AUDIT

SOCIAL AND ENVIRONMENTAL AUDIT - Transcript

SOCIAL AND ENVIRONMENTAL AUDIT In addition to concentrating on increasing profitability and improving financial stability organisations should be concerned about the impact of their operations on society and environment This need has given rise to social accounting and social auditing Environmental audits are based on occupational health emission standards disposal and storage of hazardous wastes and so on
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Social Audit
The

terms social accounting and social auditing are misunderstood as the same which is a misnomer Social accounting is a systematic assessment and reporting of those parts of a company s activities that have a social impact Social auditing is an approach that can be used for reporting the social performance of an organisation
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Blake

Fredrick and Myers define social audit as a systematic attempt to identify analyse measure evaluate and monitor the effect of an organisation s operations on society The emphasis on the cumulative effect of all operations rather than that of selected philanthropic activities corporate social responsibility programmes or similar initiatives
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Features of Social Audit
The

aim of conducting social audit is to influence the policies objectives and actions of the concerned organisation to improve its social performance Various approaches are inventory approach involving a simple listing of programmes developed to deal with social problems
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A

programme management approach is a more systematic effort to measure the costs benefits and the achievements of the organisation It is an extension of a traditional management audit to social programmes A cost benefit approach attempts to list all social costs and benefits occurred by an organisation in terms of money The social indicator approach pertains to utilizing social criteria suitable housing health job opportunities to clarify community needs
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Types of Social Audits
Social Social

balance sheet and income performance audit

Requires quantification of social costs and income to reduce social costs To asses the performance wrt areas of social concern Research to find out social impact of pollution To evaluate social performance in terms of social indicators that signify public interest
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Macro micro

social indicator audit
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Constituency



grope attitude audit


Government

mandated audits



Social

process or programme audit

To ascertain how corporate actions affect employees Depending on the audit the policies are modified By authorised government agencies to study an organisation s performance in areas of social concern such as environment protection This audit is limited to specific processes and programmes of the organisation that may have social implications It aims to appraise a programme which has already been initiated by the organisation
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ENVIRONMENTAL AUDIT
Environmental

compliance audit to check conformance with the occupational health and safety requirements and conformance with the emission standards and license requirement Environmental management audit to evaluate whether the organisation s management has the resources to reach level of compliance lack of clarity lack of proper training etc
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