What is a Social Audit?
A social audit is a thorough evaluation of a company’s initiatives, processes, and code of conduct concerning social responsibility and its influence on society. It serves to assess how effectively the company is realizing its social responsibility objectives and milestones.
Key Benefits
- A social audit provides a structured review of a company’s role in social responsibility and its societal impacts.
- It examines how well the company meets its social responsibility goals or benchmarks.
- Companies aim to balance profitability with social responsibility through these audits.
The Importance of Social Audits
In an ideal scenario, corporations strive to balance both profitability and social responsibility. A social audit allows organizations to internally assess their societal impacts, including whether they meet established goals and benchmarks. This audit helps determine if their actions are positively or negatively perceived, thereby affecting the company’s public image.
In today’s era of corporate social responsibility, businesses are expected to provide value not just to consumers and shareholders but also to meet environmental and social standards. Social audits assist companies in creating, improving, and maintaining a favorable public image, which subsequently can enhance earnings by mitigating the effects of negative publicity.
Key Aspects Evaluated in a Social Audit
The scope of such audits varies enormously. It can include aspects of social and public responsibility, along with employee treatment. Common components of a social audit encompass:
- Environmental impact from company operations
- Transparency in reporting public or environmental issues
- Accounting and financial transparency
- Community development initiatives and financial contributions
- Charitable donations
- Employee volunteer efforts
- Energy use and footprint impact
- Workplace environment (safety, equality, harassment-free conditions)
- Employee compensation and benefits
- Nondiscrimination and diversity practices
There is no one-size-fits-all standard for a social audit. These audits are typically optional, allowing companies the flexibility to disclose results publicly or keep them for internal use. This elasticity lets companies adapt the scope based on their specific objectives. For instance, one company may focus on its impact within a city, while another might extend the audit to cover several countries.
Inspirational Example of a Social Audit: Salesforce
Salesforce.com, a Fortune 500 enterprise and one of the largest software firms in the U.S., has committed to operating on 100% renewable energy globally as part of its social audit efforts. The company’s findings, including the annual Stakeholder Impact Report, are transparently listed on its website.
According to these reports, Salesforce is one of the pioneering cloud companies committed to powering all data center operations with renewable energy. Below is a representative example from their stakeholder report illustrating their progress towards the 100% renewable energy objective.
Leveraging Social Audit Findings
Since social audits are voluntary, the decision to release findings to the public also lies with the company. While favorable results might be shared, negative outcomes may be used internally to identify areas for improvement—and targeting these for the next audit.
For instance, an audit might reveal inadequate company involvement in community charitable activities. Executives can then implement strategies with clear measurable goals to ramp up community engagement, using the gathered data for the next social audit for better insights and enhancements.
By relentlessly striving to meet and exceed social responsibility benchmarks, companies can progressively improve their public perception. Essentially, social audits help to align profits with ethical considerations.
By conducting regular social audits, companies not only demonstrate their commitment to ethical practices but can also identify opportunities for sustainable growth. Engage in a social audit today to strengthen your company’s social impact and public image.
Related Terms: corporate social responsibility, sustainability, public relations, business ethics, transparency.
References
- Salesforce. “FY17 Stakeholder Impact Report”.
