What do you understand by Corporate Social Responsibility Audit ? Being the company secretary of XYZ Ltd. you are asked to design and implement a framework for Corporate Social Responsibility Audit. Suggest an indicative

A Corporate Social Responsibility audit aims at identifying environmental, social or governance risks faced by the organization and evaluating managerial performance in respect of those. Corporate Social Responsibility ("CSR") is a broad term however, for the purpose of addressing the scope of a CSR Audit, CSR is about managing and taking into consideration organization's operational, processes and behavioural impact on society and stakeholders from a broad perspective. CSR audit has yet to gain momentum but the concept aims to give an independent opinion by external auditor, on the extent of alignment of CSR objectives with the business goals and level of managerial commitment and performance with regard to attainment of social responsibility objectives defined by the company's Board. An Indicative CSR Audit Programme is given below: Segments Assessment Tools Scope Objectives Coverage The exhaustiveness of CSR objectives Integration The extent to which the CSR objectives of the company are aligned with its business goals. Commitment The clarity of roles and powers assigned to management for fulfilment of CSR objectives. Integration of Social responsibility throughout the organisation. Implementation Processes Identification of the implementation procedures, time frames, risk and performance management tools for fulfilment of CSR objectives. Manner of delivering CSR activities either by way of foundation/ Trust route or by imbibing them into day to day activities. Resources Allocation of funds, manpower, infrastructure etc. Monitoring/ Reporting Internal control systems to monitor the adequacy of mechanisms (including periodic reviews) in relation to fulfilment of CSR objectives. Reporting: Communication of adequate data in relation to CSR objectives to various stakeholders Outcome Impact Analysis Analysing the impact of CSR activities carried out by the company in various areas and the quality maintained. Feedback Identification of control weaknesses and make recommendations for improvement to CSR programs of the company. Identification of areas requiring changes.