Social auditing creates an impact upon governance. It values the voice of stakeholders, including marginalised/poor groups whose voices are rarely heard. Explain the benefits of Social Audit.
CS Professional · Compliance Management, Audit and Due Diligence · PYQS · June 2025
Social auditing creates an impact upon governance. It values the voice of stakeholders, including marginalised/poor groups whose voices are rarely heard. Explain the benefits of Social Audit.
Answer & Explanation:
A social audit examines issues regarding internal practices or policies and how they affect the identified society. The activities included tend to pertain to the concepts of social responsibility. This can include activities affecting the financial stability of a region, any environmental impact resulting from standard operations and issues of transparency in reporting. Benefits and Advantages of Social Audit; Financial data on social activities/programs/interventions: Social Audit assesses the source of funding, its utilisation and appropriate reporting to the Governing Body of the Social Enterprise. Encourage for social performance: Social Audit assesses the impact of the activities undertaken and brings the social point of view to the attention of the management, and thus encourages the Social Enterprise to perform better. Improve relationships with Stakeholders: By Implementing the auditors' recommended improvements, it helps the Social Enterprise to meet stakeholder expectations, enabling it to build a good relationship with them in the long term. Comparison of different activities: The Social Audit provides data for comparing effectiveness of different types of social welfare programmes undertaken and this further enables to assess which activity has better social impact. Enhances Social Reputation: Social Audit helps the organization to build up the image and reputation of the organization in the minds of the public. Sense of Social Responsibility among Shareholders and Community as a whole: Social Audit helps shareholders as well as other stakeholders realize the importance of socially beneficial programmes and extend their cooperation to the Social Enterprise's programmes of social welfare and development.
Topics: Social Audit
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