Question

In two paragraphs:
List the three steps involved in conducting a social audit?

Answer 1

The SAA process consists of three different steps, each one of it can be seen as a different module. This gives benefit to the organisation. Before the embarking on the steps, there is a stage called as getting ready.

In this stage, there is a proper understanding of the overall framework, and the principles and history of SAA. Before any preparations, the organisation first has to decide whether it wants to do the SAA process or not. It looks into the considerations and implications if the organisation wants to do it, what are the requirements of the resources and how to manage the process.

Step 1: Social, environmental and economic planning : in the first and foremost step, the organisation has to prepare a framework of mission, values, objectives and activities. This is an important step where the organisation has to link its purpose and values with its activities. A stakeholder map is produced which tells who has the interest in the organisation, and who are the people affecting the working of the organisation. These stakeholders can be both internal and external stakeholders.

Step 2: Social, environmental and economic accounting:

• scope, indicators and consultants: in the second stage, identifying indicators and adopting the method of of data collection is done after reviewing the scope. Then stakeholder consultation is given, where the organisation puts together the information from each stakeholder. Its a step in which the analysis is done and then the accounts are prepared based on the data collected. Apart from booking keeping, the organisation also has to understand the economic impacts, and its impact on the environment, and the ways to measure them.
• Human Resources : this includes the stakeholders such as staff, families of staff, volunteers and consultants.
• Good governance and accountability: this includes the stakeholders like trustees, members, advisory councils, directors and management.
• Financial sustainability: reporting on systems such as sustainability strategy, risk management strategy and financial accounts.
• Economic impact: includes the ways in which you can measure the impact on the economy like purchasing, policies, contribution made to the economy, direct and indirect impacts on local economy.

Step 3: The audit: the last step includes drafting of social accounts and presenting them to panel. The panel consists of about two to four people, who are appointed by the organisation. Members of the panels would usually, be the experts in the function areas of the organisation, or someone who has a strong understanding of the local environment in which the organisation operates. The panel must be objective and impartial, and hence the organisation has to appoint someone who's decision is respected.

Panel process is carried out for two days: the first day is referred to as social audit trail; that involves a visit to the organisation for a sample check of the social book keeping data. This is conducted by social auditor, who presents a report of his findings, to rest of the panel on the second day. The panel meeting usually lasts for around four to six hours and includes opportunities for both panel menders and the organisation's representative to comment and go through the overall report. Social account will represent the organisation. The main objective of the entire meeting is that the panel must evaluate the social accounts presented and ensure that they are completely gathered and reasonably interpreted.

Notes will be prepared after the final meeting, that covers the items noted in the social audit panel checklist. Changes would be made in the draft and modified version needs to be shared with the chair and the panel members.