CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
In the era of corporate social responsibility, where corporations are often expected not just to deliver value to consumers and shareholders but also to meet environmental and social standards deemed desirable by some vocal members of the general public including the host communities, social auditing can help companies create, improve and maintain a positive public relations image. In essence, social auditing will enhance rural development by means of corporate social responsibility by companies (Zadek, Pruzan & Evans, 1997). Social auditing also entails a formal review of a company’s endeavors in social responsibility. A social audit looks at factors such as a company’s record of charitable giving, volunteer activity, energy use, transparency, work environment and worker pay and benefits to evaluate what kind of social and environmental impact a company is having in the locations where it operates (Zigga, 2003).
Social audits are optional i.e. companies can choose whether to perform them and whether to release the results publicly or only use them internally. It also involves the process of evaluating a firm’s various operating procedures, code of conduct, and other factors to determine its effect on a societal development. The goal is to identify what, if any, actions of the firm have impacted the society in some way. A social audit may be initiated by a firm that is seeking to improve its cohesiveness or improve its image within the society by means of contributing to the development of the community. If the results are positive, they may be released to the public (Wikipedia, 2015). For example, if a factory is believed to have a negative impact, the company may have a social audit conducted to identify actions that actually benefit the society. Companies around the globe are beginning to assess their social performance and report the results of those assessments as a means of demonstrating their commitment to social responsibility. These audits can help companies identify risks, noncompliance with laws and company policies, and areas that need improvement. As a result, it can be used as a tool for rural development. An audit should provide a systematic and objective survey of the firm’s ethical culture and values. Audits can also spotlight social responsibility activities and accomplishments related to environmental impact, sustainable development, consumer welfare, fair trade, treatment of employees, and relationships with other stakeholders. These reports are often called “social audits,” “social responsibility reports,” or “corporate citizenship audits (Zadek, Pruzan & Evans, 1997).”
Leave a Reply
You must be logged in to post a comment.