Social Accounting – measuring impact
emphasis on early intervention to reduce the need for late, high cost crisis action; emphasis on early intervention to reduce the need for late, high cost crisis action;
What is social accounting ► Social Accounting is the process whereby an organisation can account for its social performance, report on and improve that performance. ► It assesses the social and environmental impact and the ethical behaviour of an organisation in relation to its stated values and objectives and to the views of its stakeholders. ► From Social Audit Manual – produced by CBS Network
Where did social accounting come from? ► Emerged from community enterprise in early 1990s – reasons… ► Developed through working with social enterprises – stress empowerment! ► Social Audit Network of practitioners ► Manual and Quality and Impact Project 2005 ► Revised methodology in wallchart
Getting Ready ► Getting Ready: Understanding social accounting and audit – (do we want to do this?) ► What does it involve ► What are we already doing (exercise1) ► Are we committed to doing it ► Financial and people resources
The three stage process ► Step One: Social, Environmental and Economic Planning – (who are we?) ► Mission ► Values ► Objectives and Activities ► Key stakeholders.
Step Two ► Social, Environmental and Economic Accounting – (how are we doing?) ► decide on the scope of the audit ► agree the indicators to measure performance ► identify qualitative and quantitative information ► carry out the stakeholder consultation
Step Three ► Social, Environmental and Economic Reporting and Audit - (reporting back and moving on) ► collate information and write up accounts ► present draft accounts to an audit panel ► make changes as recommended by panel – leading to audit statement ► feed back findings to stakeholders
Social Audit: the Principles ► Clarify purpose ► Define scope ► Engage stakeholders – (multi-perspective) ► Determine materiality ► Make comparisons ► Be transparent ► Verify accounts ► Embed the process
Social Audit: Organisational Key Aspects 1. People – staff, volunteers, policies, engagement 2. Good Governance - 3. Asset lock and use of surplus 4. Financial sustainability 5. Environmental sustainability 6. Financial and economic impact
The Social Audit Cycle
Snags and Benefits (exercise 2) ► Pair up with someone ► Discuss what you see as the snags and benefits of social accounting ► Group feedback
The Benefits of Social Audit ► effectively monitor and steer performance ► allow “stakeholders” to affect behaviour and influence policy ► accurately report on achievements ► assess social, community, environmental, cultural added-value ► improve social performance ► an internally generated and externally verified process From Social Audit Manual – produced by CBS Network From Social Audit Manual – produced by CBS Network
Other feedback … ► In some cases social audit process has helped to secure new funding packages ► Has helped some groups in addressing major governance issues ► Has helped some groups develop new policies ► Has helped groups to measure additional benefits
[the rationale for government funding investment]… emphasis on early intervention to reduce the need for late, high cost crisis action; John Swinney – letter to COSLA June 2010
Example –Out of School Care providers ► Were able to verify the quality of childcare provided from the view of a wide range of stakeholders ► Consultation with parents gave good feedback on the economic benefits through increased disposable income ► This information could be used to show the local economic multiplier effect of the provision
The essence of social accounting ► …..accounting for what we do and listening to what others have to say, so that future performance can be more effectively targeted at achieving our chosen objectives….
For more information Social Audit Network socialauditnetwork.org.uk