Emerging Dimension of Social Audit in Indian Corporate Sector

Abstract

Firms have to recognise their due responsibilities and consider these in the planning and action stages. Economic performance of a business unit itself is an issue of great social audit to an evaluation of the contribution of business to 'Social Service' areas only. Economic growth itself is the basic social service to be done by the business in Indian conditions. This has to be done with due regard to the efficient and effective use of resources, preservation and development of resources and with the least possible adverse side effects on any part of the society. It should be readily realised that if 'Social Audit' is restricted to the evaluation of the contribution made by business to education, recreation, charity and other such peripheral activities, it will conceal more than what it will reveal. Can't we consider it possible more than what it will reveal. Can't we consider it possible that a businessman may make significant contributions to charity, education and politics by exploiting labour, consumers and investors? Is this not what might have happened or may be happening even today in Indian in many cases? Social Audit in a restricted sense is bound to serve as a smoke-screen to hide such evil sources of contributions to socio-political causes. Such an audit will not be useful for social view-point in our country. As against the restricted concept of Social Audit as the measurement and evaluation of an organisation's performance in social service areas, we, in India, should adopt the broad view of Social Audit as a "comprehensive evaluation of an organisations fulfilment of its responsibilities towards different stakeholders. As a matter of fact, the focal point of Social Audit should be human being rather than the organisation.