Benefits of Social Audit
A social audit is a systematic study and evaluation of an organization’s. Social performance is distinguished by its economic performance. It is concerned with possible influence quality of life, instead of the possible influence of the social quality of life. The social audit leads to a social performance report or social report for management and perhaps outsiders also. It is a procedure by which an organization/government accounts for its social performance to its stakeholders and seeks to progress its future social performance. The main objective is to assess the physical and financial gaps between the needs and resources available for local development.
Social audit is a technique to understand, measure, verify, report on and to improve the social performance of the organization. There are some benefits like:
(a) Encourage for social performance:
Social performance refers to any organizational activities that affect the general welfare of society. The idea of social performance emphasizes the total needs of a whole community and the whole society. It provides a recognized method for bringing the social point of view to the attention of management.
(b) Considered as a desirable opinion:
Through a social audit, organizations measure social performance which eventually the most desirable opinion that will help to obtain the goals ultimately. A person outside the company appraises the individual corporations. Hence, they can give an unbiased and disinterested view about the activities of the company employees.
(c) Providing data for comparing effectiveness:
It gathers information related production, distribution, and sales, purchases which help to compare one year with another and one organization with another. The social audit report is made to the company and not to the public. Hence the social auditor can give a frank opinion about the social welfare schemes of the company.
(d) Cost data on social programs:
The organization costs on social programs with gifts, corporate giving, religious support, and educational capacities and so on. The social audit measures it and calculates the performance of social responsibilities. It helps the organization to build up the image and reputation of the organization in the minds of the public.
(e) Avoid conflict:
The disagreement among management, owner, and employees will lead to conflict in the organization. To avoid those conflicts organizations select the procedure to measure social performance known as social audit. It supplies data for comparison of policies and standards. It creates team spirit and develops discipline.
(f) Extensive discount:
Sometimes social audit discloses some necessary information of vast areas that help to justify the social performance of every individual of the organization. It encourages greater concern for social performance throughout the organization. This will enable the company to maintain its profit volume unaltered. It can also pay a fair dividend to its shareholders in spite of the various constraints faced by the company.
(g) Information for effective response external claimants:
Several external claimants like suppliers, community, labors, government use the information for the effective response. It provides data for comparing effectiveness of different types of social welfare programmes.