the social audit movement

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The Social Audit Movement

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THE SOCIAL AUDIT MOVEMENTTo fulfill the assignment of social responsibility accounting subject

BY :

KARIMAH JAMAL 125020307111053 IQBAL MAULANA 125020307111020

Accounting Department. Faculty of Economic and BussinesBrawijaya University THE SOCIAL AUDIT

What is it?

The social audit is a business statement published every year to present a set ofinformation about the social projects, benefits and actions addressed to employees,investors, market analysts, shareholders and the community at large. It also functions as a strategic instrument to evaluate the practice of corporate social responsibility.Through its social audit the company shows what it does on behalf of its professional staff, their families, collaborators and the community at large. Transparency is given to the activities developed to improve quality of life. Its main function is to make public the company's social responsibility, thereby strengthening the links between company, society and environment. When put together by multiple professionals, the social audit shows and measuresthe company's concern about people and about life in our planet.

Background

In the United States and Europe during the 60s, public repudiation of the war inVietnam triggered a movement to boycott the goods and shares of some companies that were associated with the conflict. Society demanded a new ethical attitude and some companies began to provide accounts for their social actions and objectives. Drawing up and publishing annual reports containing information of a social nature led to what we now know as "the social audit". n Brazil the idea began to be discussed in the 70s, but only in the 80s the first social audits were published. From the 90s onward, corporations of various sectors began to publish their results annually. The issue only gained national attention in June 1997 when sociologist Herbert de Souza - Betinho - launched a campaign for companies to publish their social audit on a volunteer basis. With the support and participation of prominent business personalities, thecampaign took off and led to a series of debates in the media and in seminars and forums.We can now see the success of this initiative and assert that what is now underway is aprocess of shaping another mentality and innovative practices amid the business sector.

Why publishing it?

Because it's ethical. Being fair, good and responsible is a reason in itself. Because it adds value. The social audit gives the company a reference that is beingmore and more appreciated by investors and consumers in Brazil and throughoutthe world. Because it reduces the risks. In a globalized world where information takes onlysome minutes to be spread all over international markets, ethical and transparentconduct has to be an integral part of any organization's strategy. Because it's an instrument of modern management. The social audit is a valuabletool for the company to administrate, measure and publicize the practice of socialresponsibility in its undertakings. Because it's an instrument of evaluation. Market analysts, investors and financingagencies such as BNDES, BID and IFC now include the social audit in the list ofdocuments required to assess a company's risks and projections. Because it's innovative and transforming. Publishing an annual social audit meanschanging the old approach - indifferent to the satisfaction and welfare of employeesand clients - to a modern view where the company's objectives include the concernof social and environmental responsibility.

Who benefits?

The social audit benefits all groups involved with the companys activities. Itprovides useful information for directors to make decisions regarding the social programs the company sponsors. Preparing the social audit stimulates the employees to take part in choosing social actions and projects, thus improving internal communication and integration between managers and staff. Suppliers and investors learn how the company faces its responsibilities with regard to human resources and the environment, which is a good indicator of how the company is run. The social audit shows consumers its philosophy and the quality of the product or service that is provided, pointing to the way the company chooses to make itself known.The State also benefits through the identification and formulation of social policies. AsBetinho would say: "the social audit has no owners, just beneficiaries."

The stamp

In 1998, in order to encourage more corporations to participate, Ibase launched theIbase/Betinho Social Audit Stamp, awarded each year to companies that publish theirsocial audit according to the model suggested by Ibase.The stamp allows companies to show on their packaging and in reports, sites andpublicity campaigns that they invest in education, health, culture, sports and theenvironment.The Ibase/Betinho Social Audit Stamp shows the company has already taken the first step towards becoming a citizen-company committed to increasing quality of life of itsemployees, the community and the environment. Its annual publication presents to thepublic its internal and external investments.

The model

Since 1997, Ibase has been calling the attention of the business community to theimportance and need for a single and simple model for the social audit.Ibase believes that simplicity guarantees a greater number of companies involved. So,after meeting and debating with different sectors of society and various representatives of public and private companies Ibase developed a model that is simple and objective, which stimulates companies to publish their social audit regardless size and sector.If information is not presented according to a minimum standard, it becomes difficultto make a proper evaluation of a company's social function over the years. Thepredominance of objective data is fundamental to enrich this type of statement. Although it is no easy task to correlate financial factors with social data, the indicators presented in the model suggested by Ibase help the comparative analyses of the company over time or among other companies of the same sector. Society and the market are the chief auditors of the process and the results achieved.

Objectives of a Social Audit Assessing the physical and financial gaps between needs and resources available for social aims and objectives. Creating awareness among beneficiaries and providers of local social and private services. Increasing efficacy and effectiveness of local development programmes. Scrutiny of various policy decisions, keeping in view stakeholder interests and priorities, particularly of rural poor. Estimation of the opportunity cost for stakeholders of not getting timely access to public services. Advantages of Social Audit Encourages responsible business practices Encourages community participation and local democracy Benefits disadvantaged groups Promotes ethical decision making and sharing responsibilities Develops human resources and social capital The Institute of Social Auditing of Ireland (ISAI) is an Irish (not for profit) body formed to promote the concepts of accountability within all sectors of Irish Society. Social Auditing is a systematic and objective procedure by which an organisation can measure and validate the social, community and/or environmental impact of its activities to its stakeholders. The declared aim of the ISAI body is to encourage community action in a sustainable manner through fostering the widespread adoption of Social accountability and auditing techniques and practices within all sectors of Irish Society. The ISAI should, through its membership, be able to utilise the new social audit techniques in order to document how partnership action is transforming local communities throughout Ireland. The ISAI is to encourage collaborative, ongoing partnerships with organisations outside of ISAI, both public (agencies, support systems) and private (funders, corporations, community action groups, etc.), which would benefit from contact with the ISAI and to support the development of accredited training in Social Auditing for social audit practitioners.

Purpose of the Social Audit

This tool is designed to be a handy, easy to use reference that not only answers basic questions about Social Audit, reasons for conducting Social Audit, and most importantly gives easy-to-follow steps for all those interested in using Social Audit.

The purpose of conducting Social Audit is not to find fault with the individual functionaries but to assess the performance in terms of social, environmental and community goals of the organisation. It is a way of measuring the extent to which an organisation lives up to the shared values and objectives it has committed itself to. It provides an assessment of the impact of an organisation's non-financial objectives through systematic and regular monitoring, based on the views of its stakeholders.

Salient Features

The foremost principle of Social Audit is to achieve continuously improved performances in relation to the chosen social objectives. Eight specific key principles have been identified from Social Auditing practices around the world. They are:

1. Multi-Perspective/Polyvocal. Aims to reflect the views (voices) of all those people (stakeholders) involved with or affected by the organisation/department/programme.

2. Comprehensive. Aims to (eventually) report on all aspects of the organisation's work and performance.

3. Participatory. Encourages participation of stakeholders and sharing of their values.

4. Multidirectional. Stakeholders share and give feedback on multiple aspects.

5. Regular. Aims to produce social accounts on a regular basis so that the concept and the practice become embedded in the culture of the organisation covering all the activities.

6. Comparative. Provides a means, whereby, the organisation can compare its own performance each year and against appropriate external norms or benchmarks; and provide for comparisons with organisations doing similar work and reporting in similar fashion.

7. Verification. Ensures that the social accounts are audited by a suitably experienced person or agency with no vested interest in the organisation.

8. Disclosure. Ensures that the audited accounts are disclosed to stakeholders and the wider community in the interests of accountability and transparency.

The following figure depicts the principles of Social Audit and universal values:

These are the pillars of Social Audit, where socio-cultural, administrative, legal and democratic settings form the foundation for operationalising Social Audit. The Social Audit process is intended as a means for social engagement, transparency and communication of information, leading to greater accountability of decision-makers, representatives, managers and officials. The underlying ideas are directly linked to concepts of democracy and participation. The application of Social Audit at the village level holds tremendous potential for contributing to good local governance and increased transparency and accountability of the local bodies.

Who can use the Tool?Social Audit Toolkit can be used by government departments, private enterprises as well as the civil society. However, the scope in terms of audit boundaries would be specific to that of a government department, private organisation, an NGO or a community. In case of private organisations, the emphasis may be on balancing financial viability with its impact on the community and environment. In case of NGOs, in addition to using them to maximise the impact of their intervention programme, they could also be used as effective advocacy tools. Depending on the resources available Social Audit could be comprehensive, state-wide, and can also be localised to the community level.Applying the ToolThe six steps of Social Auditing are:1. Preparatory activities2. Defining audit boundaries and identifying stakeholders3. Social accounting and book-keeping4. Preparing and using social accounts5. Social audit and dissemination6. Feedback and institutionalisation of social audit

The first two steps are critical when a department decides to incorporate social accounting, social book-keeping and social auditing. The department needs to look at its vision, goals, current practices and activities to identify those that are amenable to social auditing purposes. Small work groups (say, seven persons) are to be formed which would spend about two days each to list down the social vision, core values, social objectives and map stakeholders and their involvement. Ensure involvement of various functionaries with due representation to gender, while forming small groups. The small groups should have access to project documents, process documentation, department guidelines and policy notes.

The next activity would be to assign the task of matching the activities with the social objectives and identifying gaps. This again could be carried out by a small group drawn from the managerial cadre and execution/implementation groups at the field level. All this information would be then looked into; to develop a plan for Social Auditing, including who would be responsible in the department, monitoring and identifying the resources required. This responsibility again could be given to a small group of three individuals.

Stakeholder consultation, involving department functionaries and civil society, would be the forum for sharing the Social Audit plan. This consultation would clarify the issues important for Social Auditing, role of stakeholders, as well as commitments from them. The outcome of the consultation would be fed into the process of detailing out: the indicators to be monitored; which existing records are to be used; and how additional information would be collected. The next key step is to fix responsibilities for various activities. The activities include preparing formats for social account-keeping, compilation of data and reporting the same on a monthly basis (internal use). Managers of the department/programmes can use this information for monitoring as well as providing feedback for improving performance and overcoming bottlenecks. Ideally, Social Audit should be conducted regularly, and the method should be developed through a participatory relationship between the auditor and the organisations/departments. The following figure depicts the detailed steps followed in the social audit cycle.

In addition to using the Tool kit exercises in the right sequence, it is vital that the process is participative and inclusive. The cycle starts with deciding to do a Social Audit and at the end of each year planned targets and actual achievements are to be compared.

The table on the next page identifies 21 essential social media communications practices. They are grouped into four categories compatible with the widely used Strategic Prevention Framework. 1) assessment 2) capacity and planning 3) implementation and evaluation, and 4) support.

1. Assessment Includes the core tasks of conducting a communications assessment that includes clarity of coalition vision, mission, and identity in both online and offline communications.

2. Capacity & Planning Includes conducting an inventory of what you have to work with or need to acquire e.g., staff, knowledge, experience, tools, etc. to design, plan and carry out social media communications strategies. Critical to this step is the ability to design for participation and strategically selecting tools that fit the interaction desired.

3. Implementation & Evaluation includes implementing the plan by weaving your coalitions online/offline presence and attending to identified metrics/measures monitoring and tracking social media actions and results.

4. Support Includes non-communications practices within the coalition that helps to ensure the communications actions are successful.

The following table also offers quality standards or criteria for each practice and describe in brief what the practices look like. The list, on its own, has substantial value in the audit process. It can be used as a checklist to help determine if a coalition is actually performing each social media communications practice. But more importantly, the audit process reveals whether quality criteria are being met, and if not where improvements can be made.

Essential Social Media PracticesSocial Media PracticesQuality Criteria/Standards

AssessmentClearly stated communications visionThe coalitions communication vision is aligned with, but distinctly different from, the actual mission of the coalition

Clearly identified goals and outcomesSMART communications goals and outcomes are --Specific, Measurable, Achievable, Realistic and Timely.

Select priority populationSpecific audience groups are identified and may include key stake holders, partners, sectors and influencers

Select platformThe coalition has selected a specific platform based on its ability to support communication goals

Guidelines & social media policiesGuidelines and policies in place to clarify process and define appropriate social media actions

Listening researchResearch accomplished to learn what other coalitions are doing and what/where the conversation are happening.

Asset inventoryAn inventory of assets (resources, members, volunteers, knowledge, etc.) you can apply and the unique gift the coalition adds.

Capacity & PlanningSelect Tool(s)Tools are selected based on their ability to support your goals and accessibility to your priority population

Establish network/community Active steps taken to understand and enable development of your online network or community.

Train spokesperson(s) & membersAppropriate training given to people responsible for providing information and participating on behalf of the coalition and guidelines provided for members, partners and others

Nurture valuable partnershipsRelationships are established with partners, sectors and stakeholders aligning with your goals

Monitor & evaluateActivities are continuously monitored and evaluated for the purposes of accountability and improvement.

Implementation & EvaluationWebsiteStrategic linkages and integration between social media efforts and your coalition website

BlogStrategic linkages and integration between social media efforts and your blog

E-Mail marketingStrategic linkages and integration between social media efforts and your e-mail communications or e-newsletter

Other Social Media PlatformsStrategic linkages and integration between all social media platforms

Print materialsStrategic cross-promotion of social media efforts via printed materials e.g., products, letterhead, business cards, etc.

OfflineStrategic cross-promotion of offline activities via media AND social media

SupportSupport at the leadership levelManagement understands and supports social media as part of the overall communication strategy of the coalition

Allocate sufficient resourcesFinancial and human resources are dedicated to supporting social media efforts

Involve all interested membersSocial Media is not seen as an isolated function; most if not all members have some knowledge and/or participation in social media communications efforts.