Social audit

A social audit is an analysis of a company’s environmental and social impact. Social audits evaluate a company’s relationships with its employees. SHAREHOLDERS, and the local communities affected by its activities. Many CORPORATIONs have developed BUSINESS ETHICS standards. Social audits, usually conducted by an outside agency, review a company’s performance against its standards and make recommendations for improvement. A social audit will usually include analysis of a company’s • health and safety practices
• environmental practices
• community development
• working conditions
• labor practices
• human-rights protection
• training and promotion
Social audits are increasingly important to a company’s image; positive results are sometimes used as part of marmarketing strategies. In recent years multinational companies have faced increased scrutiny and pressure to improve CORPORATE SOCIAL RESPONSIBILITY. Reports of working conditions in textile factories around the world have influenced major U.S. retailers to review and take increased responsibility for practices in companies they purchase from. Social audits can be time-consuming and expensive. Some companies attempt to demonstrate their social responsibility through philanthropic and community services and socially responsible INVESTMENT efforts.