Social Auditing feedback control for organisations
George Clark is an Education Management Advisor recently returned to the UK. Through
separate contacts with Alana Albee ( co-author of NICDA materials) and John Pearce
(co-author of NEF materials) he became interested in what is coming to be called Social
Auditing because of how it mirrors and enlarges on the concept of Whole School Auditing
which he was helping to develop in Lesotho.
This short paper is his attempt to document the key UK initiatives in the Social Audit
field and to map the emergent training and certification possibilities.
(Contact: George Clark Tel: 01261 843950; email ggclark@srds.co.uk
; Web: www.srds.co.uk and www.caledonia.org.uk )
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What is now coming to be called Social Auditing is similar in many ways to Financial
Auditing except that it is about everything else that an organisation does apart from
handling money.
Few people have official training in preparing budgets or in bookkeeping and accounting
but most people have some idea of why it is necessary and what is involved. All the bits
of paper and number crunching add up to a review process that is called Financial Auditing
which is an official and measured statement of the extent to which you are effectively
doing what you are supposed to be doing.
In both cases we are dealing with social systems which survive in the long
term only through being alive to feedback concerning both their internal (subsystem) and
external (supersystem) environments. Effective and efficient organisations have a clear
vision of where they are going and of how they are going to get there. The Social Audit
process helps organisations achieve that clarity of purpose and efficiency of procedure.
Before a Social Audit can take place you have to be clear about:
| what you are trying to do as an organisation (objectives) both internally and
externally |
| how you are going to do it (action plans) |
| how you will measure and record the extent to which you are doing it (indicators) |
When those are in place it is easy to design simple procedures to log what is going on
from day to day (social bookkeeping) and to tally up the indicators every now and again
(social accounting) to make sure that you are on target and to do something about
it if you are not!
The Social Auditor is a critical friend (ideally an outsider) who
periodically checks the books and asks probing questions to help the
organisation reflect systematically on the effectiveness of its internal operations as
well as on its broad external impact.
The assistance of an experienced Social Auditor may be required at first to help an
organisation clarify its objectives, indicators, actions plans, and recording and
accounting procedures. Once the procedures are in place, however, the organisation will
have developed the skills required for evolving the system.
At present at least four systems of Social Auditing have been developed in the UK but
until recently it has not been possible to officially certify people as
effective Social Auditors. In what follows the key training materials are noted as are the
emerging certification possibilities.
"Social Auditing is a process which enables organisations and agencies to assess
and demonstrate their social, community and environmental benefits and limitations. It is
a way to measure the extent to which an organisation lives up to the shared values and
objectives it has committed itself to promote."
The Social Audit Resource Pack |
(1996) Alana Albee and T Justad |
Social Audit Training Manual |
C Whitehorn and A Albee |
Social Audit Training Pack |
(1998) NICDA |
Anne Molloy, Cecilia Whitehorn, NICDA, 23-25 Shipquay Street, Derry, BT48 6DC.
Tel: 01504 371733
email: NICDA_Derry@compuserve.com
NICDA has had a social audit course recognised through the Open College and is
currently working with a second group of social enterprises in the province who are
undertaking the training at the same time as doing a social audit of their own
organisation. (Contact Anne Molloy)
"Social auditing is the process whereby an organisation can account for its social
performance, report on and improve that performance. It assesses the social impact and
ethical behaviour of an organisation in relation to its aims and those of its
stakeholders."
Social Auditing for Small Organisations the Workbook |
J Pearce, P Raynard & S Zadek |
Measuring Social Wealth a study of social audit
practice for community and co-operative enterprises |
John Pearce |
Peter Raynard, NEF, Cinnamon House, 6-8 Cole Street, London, SE1 4HY.
Tel:0171 407 7447
email info@neweconomics.org
Website www.neweconomics.org
The New Economics Foundation (NEF) is running a nationwide social auditing pilot
programme (Social Auditing for Voluntary Organisations SAVO) involving 12 community
and voluntary sector bodies throughout the UK. (Contact Sara Murphy, NEF, 0171 407 7447)
Partnering NEF in Scotland is the Community Business Scotland (CBS) Network
which is launching its social audit initiative aimed at encouraging the spread of social
auditing as the accepted way in which community and social enterprises can report
regularly and competently on their performance to all stakeholders. (Contact John Pearce,
CBS Network, 01506 872296)
ISEA was established in 1996 as a professional body committed to strengthening the
social responsibility and ethical behaviour of the business community and non-profit
organisations. It has developed a set of objectives and training materials aimed at:
| fostering the international study of social accountability; |
| aiding in the design and development of standards and measures of performance in the
practice of social and ethical accounting, auditing and reporting (SEARR); |
| encouraging the convergence of SEAAR standards with sustainability accounting, and |
| designing and offering a professional qualification for social and ethical accountants
and auditors that leads to an association of international chapters. |
Institute of Social and Ethical AccountAbility, Thrale House, 44-46 Southwark Street,
London SE1 1UN
Tel: 0171 407 7370
email: Secretariat@AccountAbility.org.uk
Website: www.AccountAbility.org.uk
Social Enterprise Partnership
"Social Audit is a method for organisations to plan, manage and measure
non-financial activities and to monitor both the internal and external consequences of the
organisations social and commercial operations."
Social Audit Toolkit |
(1997) Freer Spreckley |
This handbook was first published in 1982 titled Social Audit a management
tool for Cooperative Working by Freer Spreckley and published by Beechwood College
Social Enterprise Partnership, West Midlands House, Gypsy Lane, Willenhall WV13 2HA,
UK.
Tel: 0121 6097190
The SEP in Birmingham now offers the National NVQ Course in Social Auditing
Contact Freer Spreckley or Cliff Southcombe on 01497 831770
This information is taken from Social Auditing what everyone wants; New
Sector The Magazine of Community and Cooperative Enterprise; Issue 35, May/June
1999. www.newsector.org.uk
In the City of Liverpool a second group of community-based economic development
organisations is about to introduce social accounting and social auditing. Each
organisation will nominate a social accountant who will undertake a new training programme
which has been recently recognised as an accredited course by the Merseyside Open Learning
Network. The Community Based Economic Development Unit of the City Council which is
sponsoring the new course hopes to see social auditing accepted as the norm for reporting
by community enterprises.
(Contact Mike Maguire or Helen Millne, CBED Unit, 0151 233 5428 0r 0151 233 5333
In Devon the Community Enterprise Unit, in association with the Devon CDA and the
Community Council of Devon, have developed an NVQ programme in Business Planning suitable
for people establishing social enterprises. Unit seven of the programme, Evaluate and
Develop Own Practice, makes use of the Social Audit model.
(Contact Debbie Stewart or Helen Vines, CEU, 013392 666 281)
Linking Beyond:
The following august professional bodies are recognising that old style auditing is no
longer sufficient:
ACCA The Association of Chartered Certified Accountants http://www.acca.org.uk/publications/aandb/199904_14.html
CIMA The Chartered Institute on Management Accountants http://www.cima.org.uk/
AltaVista is one of the more common Internet search engines. When I entered
"social audit" (complete with quotation marks) it came up with 614 sites. A
short selection is listed below
A movement in Australia to have a Social Audit of the State? http://www.labor.net.au/workers/magazine/8/news3_audit.html
A government movement in Canada to have a Social Audit to find the cause of poverty? http://www.pc.parl.gc.ca/news/stjacques/030399.htm
A six step approach for FOSTERing relationships http://www.corerelation.com/6steps.html
Jargon busting in the social audit arena http://www.crisp.org.uk/jargon.htm
Centre for Social and Environmental Research (University of Dundee) an info network http://www.dundee.ac.uk/accountancy/csear/aboutus.htm
Acknowledgements:
Thanks to Graham Boyd of the Caledonia Centre for Social Development (www.caledonia.org.uk) and Anne Molloy of NICDA for
help in the preparation of this immediate paper, and to Alana Albee (now the DFID Social
Development adviser for Tanzania), and to John Pearce and Alan Kay of CBS for having
helped me get my head around the concept.
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