Social Audit Regulation: Development, Challenges and Opportunities

This book takes the concept of social audit and lifts it beyond the role of functioning largely as a management tool. The book proposes a system in which social audit is regulated so as to provide a mechanism for effectively promoting corporate accountability in society. Taking this as its theme, this book provides both a conceptual explanation of the developmental perspectives of social audit regulation and empirical evidence of the impact of social audit practice from different parts of the world. It is the first book to explore the issues and challenges related to the development of effective social audit regulation.

Social audit: A mess or means in CSR assessment?

Social Audits play an important role in the measurement and analysis of a company's social performance. They provide corporations with a tool to plan and manage their social responsibility activities. Similarly, they provide stakeholders with a tool which they could use when monitoring, assessing and analysing concrete and accurate company data. Whilst the topic of social audits has been raised and discussed by a number of scholars, industry representatives and government institutions over the years, such contributions have mostly revolved around the general notion and importance of social audit, rather than addressing the most effective ways to achieve a widespread and reliable adoption of the practice through the implementation of specific legal regulation and other methods. This matter is of significant importance as corporations can exert a considerable amount control over the entire social audit process, allowing them to disclose only information deemed beneficial to their own corporate image instead of releasing all relevant social and environmental data. In order to achieve a truly transparent system promoting corporate accountability, there is an obvious need for social audits to be regulated. One of the purposes of this book is to provide an overview of the development of social audit practices and regulation. It also sets out to explore the issues and challenges which have arisen relating to this matter around the world.

Social audit failure: Legal liability of external auditors

In this chapter, we look at the step beyond reporting, to the external audit or assurance function. The role of any audit engagement is to provide a professional opinion on a set of financial or non-financial assertions reported by an organization's management, based on an agreed evaluative framework. Any such opinion is not a guarantee that the underlying report is free from fraud or misstatement. Where an audit opinion on financial statements is incorrect, this is referred to as an audit failure. Specifically, the textbook definition of audit failure has two components: that the financial statements contain a serious error and that the auditor has failed to detect the error due to the auditor's failure during the audit process.

Social Audit for raising CSR Performance of Banking Corporations in Bangladesh

Corporations' commitment to their social responsibilities has long been a global concern with reference to sustainability, transparency and fair practice, which is of great concern to stakeholders. Corporations are expected to be responsible to the society they operate within and do business in a socially responsible manner.

Social Audit Regulation Within the NGO Sector: Practices of NGOs Operating in Bangladesh and Indonesia

Social audit is one of those important mechanisms for strengthening NGOs’ accountability to poor communities (as NGOs’ key beneficiaries). However, conducting social audits within the NGO sector often rests on the individual interests and priorities of donors or NGOs themselves, effectively resulting in self-selection bias, and limiting the effectiveness and usefulness of social audits as a control and evaluation mechanism. The purpose of this chapter is to identify the prevalence, scale, and scope of social audits within the NGO sector, particularly NGOs engaging in microenterprise development programs. Accordingly, this study examined 20 NGOs operating in two countries - Bangladesh and Indonesia. Data were collected from publicly available sources and in-depth interviews with senior executives of the participating NGOs. Further, 10 interviews were conducted with a small sample of beneficiaries (individuals or groups from four of the participating NGOs) in order to gain an understanding of beneficiaries’ perceptions of the NGOs’ social audit mechanism. The findings reveal a range of approaches to social audit among NGOs, as well as the usefulness and limitations of this mechanism for strengthening NGO accountability, particularly to beneficiaries. Findings highlight that within the NGOs investigated the conduct of social audits remained voluntary and was strongly dependant on donors’ requirements. As social audit regulation within the NGO sector is minimal, the findings provide regulators with valuable guidance for better understanding the value of social audit as a mechanism to strengthen accountability of the NGO sector, particularly accountability to beneficiaries.

Serviço Social Audit Saúde no SUS/RN: projeto ético político profissional e de reforma sanitária

Health policies in Brazil, the decentralization of SUS management responsibilities for the three spheres of government has driven the creation and regulation of the audits of health services in the National Audit Office, this is a trend of neoliberal policies imposed by international bodies like the World Bank and IMF to peripheral countries characterized by productive restructuring and reforming the state focuses on the presence of two competing projects in the area of health: Health Sector Reform Project which is based on the democratic rule of law with the assumption of health as social right and duty of the State in defending the extension of the conquest of rights and democratization of access to health care guaranteed through the public financing strategies and the effective decentralization of decisions pervaded by social control and privatized Health Project which is based on the state minimum, with a reduction in social spending or in partnerships and privatization, stronger nonprofit sector, subject to capitalist interests, is made effective through strategies targeting health policy and refilantropização actions. In this context, the present study is an analysis on the work of social audits of public health in infants from a qualitative and quantitative approach, embodied by the critical method of dialectical Marxist social theory that enabled us to unveil the characterization, the demands, challenges and outline the profile of Social Work in teams inserted audits of SUS in RN, but also provided evidence to demonstrate the prospects and possibilities of this area of activity of social workers. It was also found that through the audit work that the state fulfill its role as bureaucratic and regulator of health services with efficiency, effectiveness and economy. Yet, paradoxically, the audits of SUS may provide a vehicle for enforcing rights and ensuring the fundamental principles contained in the project of health reform, because it can be configured in a space of political struggle as representing a new field of knowledge production that needs to be appropriate for a theoretical critic able to redirect the social interests in favor of the user. From this perspective, it is concluded that the work of social audits of public health in infants despite the social relevance that prints, as they constitute an activity study of reality and its transformation proposition requires a transformative political action guided the discussion Marxist theory holds that the ethical project professional politician of Social Work

Meta-regulation approach to raise social accountability In global supply firms

This Article proposes a meta-regulation approach to address the gap between the objectives, commitment, practice and outcome in the accountability practice of the global supply chain in the developing countries. The literatures on the accountability practice in the global supply chains typically focuses on the strategies for raising corporate social accountability standards in multinational buying firms and seldom focuses on this strategies in the outsourced firms in the developing countries. This article tries to fill this void by examining the situation in Bangladesh, the third largest RMG supply country in the world. It conceptualizes a meta-regulation approach with the aim of raising social accountability practice in this industry. It shows that this regulation approach is suitable to effectively raise this practice standard in a perspective where the non-legal drivers are meagrely low, global buying firms are highly profit driven and the governmental agencies are either inadequate or highly corrupt.

Corporate Social Responsibility Assurance: Theory, Regulations and Practice in China

This chapter aims to provide a comprehensive understanding of the theory, regulations and practice of corporate social responsibility (CSR) assurance in China. Built on stakeholder and related theories, it employs a demand-and-supply analytical framework to illustrate the development and current status of China’s CSR assurance market. It finds that government agencies, stock exchanges, accounting standard setters and industrial associations have collectively shaped the current regulatory framework on CSR reporting and assurance in China. Regarding demand, differences in the social and legal environments across such a large country influence the regional development of CSR assurance. Industries under intensive CSR regulations and/or social reporting pressure—for example, the finance, aviation and mining industries—more actively achieve CSR report assurance. Regarding supply, the CSR assurance market in China is shared by accounting firms and professional certification bodies. Different assurance standards adopted by the two streams of assurance providers have different foci, potentially leading to different assurance coverage and emphases.

Impact of Quality on Ethics and Social Responsibility in Marketing, in Industries in Kerala in the present Indian Scenario

The paper ‘Impact of Quality on Ethics and Social Responsibility in Marketing in Industries in Kerala in the present Indian scenario’ highlights the observations, based on a descriptive research carried out in five leading industries in Kerala, in the private and public sector. Ethics and social responsibilities, practiced in these industries, are reflected in the results of the survey conducted on specific queries like awareness of products/services provided by them, total understanding of the requirements of the customer, open discussion on technical matters, accountability of employees to the society and social needs, consumer ethics vis a vis business ethics etc. Team working goes a long way, in building relations, which in turn, results in a progressive and effective marketing strategy. This assumes paramount importance, considering the severe competition we are facing in the light of liberalization, privatization and globalization, which encompasses the globe. The prediction of India becoming a lead nation, along with USA, China and Japan, in this decade, can get fructified only if we follow a very high standards of ethics and social responsibility, in all domains including marketing. Organizations like TRW.Rane, Sundaram Fasteners, TVS Motors, in Chennai are a few among others in India, who have achieved the highest distinction in quality viz Deming Prize, and these demonstrate their commitment to quality, society and humanity at large. Cost effectiveness, without jeopardizing quality has become the need of the hour and MRTP has become history. This trait is being brought out through the survey and the results speak for themselves. Unethical practices like switch and bait, not only brings shame to the organization, and country but also results in the company getting wiped out from the market. Adherence to standards like ISO 14000 helps to maintain the minimum level of social responsibility and environmental friendliness. Like quality audit, safety audit etc, social audit is being insisted in all progressive countries to ensure that the organization comply with the minimum statutory requirements. The paper also touches upon Corporate Social Responsibility practiced in the industries and this becomes crystal clear through their commitment to improve the community. Green Marketing lays a lot of importance on the three Rs of environmentalism viz Reduce, Reuse and Recycle. The objective of any business is to achieve optimal profit and this is possible only by reducing the cost as well as waste. In this context, management tools like brainstorming, suggestion schemes, benchmarking etc becomes helpful. These characteristics are brought out through the analysis of survey results. The conclusions drawn throw a lot of information on the desirable practices with respect to Ethics and Social Responsibility in Marketing

Accountability, completeness, credibility and the audit expectations gap

This article deals with two concerns in achieving greater accountability in social reports: the lack of completeness of reporting, and the lack of credibility of reports. The article focuses, in particular, on the role of social audits in improving the completeness and credibility of reporting, thereby reducing the audit expectations gap. We suggest that this gap arises due to an over-emphasis on the validity of performance data at the expense of addressing completeness and credibility, both of which, we argue, require stakeholder involvement. The article reviews recent guidelines aimed at ensuring that companies produce reports that are complete in all material respects including those produced by the Global Reporting Initiative and the Federation des Experts Comptables Europeens, focusing particularly on AccountAbility's AA1000 Standard and AA1000S Assurance Standard. Finally, the article considers the development of a practical approach to social audit following principles increasingly being incorporated into developing assurance guidelines aimed at reducing the audit expectations gap.

La responsabilité sociale des entreprises transnationales : études de cas sur les audits sociaux et les droits des travailleurs en Chine

À l’heure actuelle, la régulation des chaines mondiales de production dépend principalement de mécanismes non étatiques tels que les codes de conduite et les audits sociaux implantés par les entreprises, les ONG et les organisations internationales. Dans cette recherche, nous évaluons si les audits menés par Nike, Adidas et Puma peuvent contribuer à renforcer les droits des travailleurs chinois. À l’aide d’entrevues réalisées sur le terrain auprès d’auditeurs et d’ONG, nous avons conceptualisé quatre conditions de base, lesquelles concernent la participation directe des travailleurs, le développement de capacités locales, le respect de la liberté d’association et la professionnalisation du travail d’auditeur social. Notre étude conclut que des étapes restent à franchir afin que les audits deviennent des outils d’avancement des droits fondamentaux. L’enjeu prioritaire demeure le développement de structures démocratiques afin de permettre aux ouvriers de former des syndicats libres et de négocier leurs propres conventions de travail.

La governance dei rifiuti in Europa. Territori, conflitti e partecipazione

I rifiuti come oggetti impegnano tutte le istituzioni umane in una lotta di definizione del posto che occupano e quindi del valore che assumono. In tale dinamica la gestione dei rifiuti diventa un fatto sociale totale che coinvolge tutte le istituzioni umane in una lotta di definizione territorializzata. La storia del movimento ambientalista ci mostra come partendo dal disagio nei confronti dell’oggetto si è passati ad un disagio nei confronti delle idee che lo generano. Modernizzazione ecologica e modernizzazione democratica sembrano andare per un certo periodo d’accordo. Nei casi di conflittualità recente, e nello studio di caso approfondito di un piano provinciale della gestione rifiuti, il carattere anticipatore dell’attivismo ambientalista, sta rendendo sempre più costosi e incerti, investimenti e risultati strategici . Anche i principi delle politiche sono messi in discussione. La sostenibilità è da ricercare in una relativizzazione dei principi di policy e degli strumenti tecnici di valutazione (e.g. LCA) verso una maggiore partecipazione di tutti gli attori. Si propone un modello di governance che parta da un coordinamento amministrativo territoriale sulle reti logistiche, quindi un adeguamento geografico degli ATO, e un loro maggior ruolo nella gestione del processo di coordinamento e pianificazione. Azioni queste che devono a loro volta aprirsi ai flussi (ecologici ed economici) e ai loro attori di riferimento: dalle aziende multiutility agli ambientalisti. Infine è necessario un momento di controllo democratico che può avere una funzione arbitrale nei conflitti tra gli attori o di verifica. La ricerca si muove tra la storia e la filosofia, la ricerca empirica e la riflessione teorica. Sono state utilizzate anche tecniche di indagine attiva, come il focus group e l’intervista.

An audit of assessment and reporting by Approved Social Workers (ASWs)

This paper examines the routine practice of Approved Social Workers (ASWs) in adult mental health services in Northern Ireland. It begins with a review of existing literature on the ASW role before describing how a retrospective audit, using a mixed methods approach, was used to collect data on eighty-four assessments carried out to determine whether compulsory admission to hospital was needed. Respondents were also asked to consider how such assessments might be affected by proposed changes to the law in this field. The key findings highlighted a number of areas of practice that may be improved. There were inconsistencies in how the assessments were recorded and an uneven distribution of workloads across ASWs. Some problems were identified with interagency working and, in a quarter of the assessments, the ASW reported having felt afraid or at risk. The authors make a number of recommendations, which include: the use of a standard reporting procedure; that organisations should consider how to deliver a more even distribution of ASW workload; that protocols should be developed that ensure that ASWs are not left alone in potentially risky situations; and that joint assessments with General Practitioners should be required, rather than just recommended.