A social audit is a systematic study and evaluation of an organization’s social performance, as distinguished from its economic performance. It is concerned with possible influences on social quality of life instead of the economic quality of life. It is a process of reviewing official records and determining whether state reported expenditures reflect the actual money spent on the ground The social audit leads to a social performance report or social audit report for management and perhaps outsiders also.
A social audit is a method of measuring, considerate, reporting and eventually improving an organization’s social and ethical performance. Social audits have several aims. One is to assess the type of social and environmental influence that the company has in its local community. Another aim is to make a judgment of the material and monetary shortfalls between the needs of the community and the assets that are available for the development of the local society. It helps to narrow gaps between vision/goal and reality, between efficiency and effectiveness.
Social Audit is a systematic, regular, and objective accounting procedure that enables organizations to establish social values and criteria against which they can measure external and internal performance and their social plans. Local Livelihoods has developed a practical Social Audit model designed for Community Enterprises to plan, manage, and evaluate non-financial activities and to create a system for communicating with stakeholders.