A Complete Guide on Social Responsibility Audit in India

The importance of addressing social and environmental challenges while ensuring financial viability. As organisations increasingly seek to balance their for-profit objectives with social responsibility commitments, the concept of social auditing has become increasingly important. 

What is a Social Responsibility Audit?

A social responsibility audit in India: 

• To assess whether project/program/work-based activities are functioning following the stated strategic intent and plans.
• Evaluate stated performance in terms of impact/outcomes. 
• Suggest ways to improve impact measurement and/ or performance through management letters. 

Is social responsibility audit a new concept like the social stock exchange?

No, social responsibility audit is not a new concept in India. The concept of social audit was first introduced in the 1990s as a means of assessing the performance of rural development programs. It has since spread to various sectors, including education, health and public services. Social auditing has become increasingly important with the introduction of the Social Stock Exchange (SSE): The SSE can be used to raise capital for social welfare and sustainable development that can be assessed through the social audit process. Social enterprises listed on the SSE can use the capital raised to create social welfare and sustainable development. This impact is then assessed through the social audit process.

Objectives of the Social Audit

The main objective of the social audit is to identify the impact created by social enterprises as a result of activities, interventions, programs and projects implemented during the reporting period. The main objectives of the social responsibility audit in India are:

• Assess the impact created by social enterprises through the implementation of activities, interventions, programs or projects.
• Verify the reality and relevance of the implementation of an activity, intervention, program or project.
• Identify and report on gaps between the desired objectives and the actual impact achieved by the social enterprise.
• Assess the nature, intensity and duration of the project's impact.

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