1. 1.3 Organisational Objectives 1.3.4 social auditing
IB Unit 1 Business Organisation and Environment
1.3 Organisational Objectives social auditing
Mr Greenbank

2. Learning Objectives By the end of this lesson students should:
Be able to define social auditing
Understand the role of social auditing in assisting businesses in setting objectives
Understand the limitations of social auditing.

3. What is social auditing?
Social auditing is a way to ensure that socially responsible objectives are being met and implemented. A social audit is an independent assessment of how a firm’s actions affect society.
It usually includes: the firms environmental impact (pollution etc), staff management (health and safety) and contributions to society e.g. charities or involvement in local projects.

4. Environmental audit?
An independent review of a firms activities that examines only the impacts on the environment is known as an environmental audit.
Many large multinational businesses use both environmental and social auditing.

5. Key aspects of social auditing?
A key part of social auditing is for the firm to devise policies to deal with its impacts on society. e.g. to devise CSR policies.
Using renewable and sustainable resources
Using reputable and socially responsible suppliers
Systems that cater for the well being of employees
Establish an ethical code of conduct
Monitor staff commitment to CSR

6. Limitations to Social Auditing
Cost! The firm must have the financial resources to satisfy recommendations
The audit is not always favorable which can publicize the weaknesses of the business. Therefore it could in hindsight harm the reputation of the business.

7. Learning Outcomes By the end of this lesson students should:
Be able to define social auditing
Understand the role of social auditing in assisting businesses in setting objectives
Understand the limitations of social auditing.