social audit & social accounting
Presented by Prem Priyesh Ragesh Rajeev Renu Sangeetha Sandeep
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Social Audit
It is the process that enables an organization to assess and demonstrate its social, economical and environmental benefits and limitations.
It measures the extend to which an organization lives up to the shared
values and objectives it has committed itself to.
Organisations whose social accounts have been audited should receive a SAN charter-mark All audited social accounts should be placed on the SAN website and be publicly available All SAN approved Social Auditors should go through accredited
training
SAN has to ensure the quality standards of the Social Auditors through peer review and continuing professional development
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Principles of Social Audit
Complete transparency in the process of administration and decision-making Right based entitlement for all the affected persons to participate in the process of decision making and validation. Immediate and public answerability of all representatives & functionaries of a public authority to affected people on relevant actions & inactions.
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OBJECTIVES I. To measure its social, environmental & economic impact . II. To report on its performance III. To provide the information essential for planning future action and improving performance. IV. To prove the value of the organisations work and improve their performance
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Benefits
Accurately report on achievements; evidence for internal external use for funders, contractors, investors Assess social, environmental, economic, (and cultural) added-value against mission and objectives Improved planning Better resource allocation And accountability
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What is Social Accounting and Audit?
A cyclical process to be embedded as part of an organisations planning Analysing qualitative and quantitative information not all impacts have financial value Through dialogue with stakeholders With external verification A framework; allows flexibility for the organisation eg scope of work, tools used within
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Getting Ready for Social Accounting and Audit
Understanding the process Looking at what you already do Get commitment Think about available resources Make it manageable! Actively decide to go ahead
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Social audit in India
Social audit is one of the audit functions with focus on monitoring various programs. In India, it is used in the context of the effectiveness of the schemes / programs run by the Government of India. Also, recently it has been used to check the effectiveness of the popular scheme NREGA (National Rural Employment Guaranty Act / Scheme).
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Advantages of social audit
To evaluate the social dimensions of the performance of the
company. To improve the social performance on the basis of the feed back provided by the social audit. Social audit increases the public visibility of the organisations. It reveals a socially commendable performance of the company
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social accounting principles
Multi-perspective
Comprehensive Comparative Regular Verified
Disclosed
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Three Step Process
Assessment
Assessment Assessment
GETTING READY Understanding process What organisation already does
STEP 1: PLANNING Mission Values Objectives
STEP 2: ACCOUNTING Deciding the scope Collecting data
STEP 3: REPORTING & AUDIT Drafting Social Accounts Social Audit Panel
Buy-in
Mission etc Stakeholders
Consultation data results
Social Audit Report
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Ease / difficulty of the process
Most difficult elements of the process 1. Setting up new systems to collect data 2. Carrying out consultation with stakeholders 3. Analysing the data 4. Writing the social accounts Easiest.. 1. Clarifying the mission, objectives, etc. 2. Working through the audit process 3. Assistance from outsiders very helpful 4. Some reported second time round less onerous
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Social Accounting process
Consideration should be given to developing social accounting kits for organisations with similar objectives More consideration should be given to analysing stakeholders and the relationships that an organisation has with them
Social accounting and audit should eventually become
compulsory for those organisations in receipt of funding provided that resources for this are made available
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Cont..........
It help us to build on shared key principles and develop a common verification process There should be a distinction between Organisational Objectives how an organisation affects the people and the planet; and Key Aspects how an organisation is managed (e.g.. governance, financial sustainability)
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conclusion
Social audit is an immediately result oriented exercise and a report prepared will have many things to contribute for the better performance and to improve the value of the organisation.
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