13 January 2016

Purpose of Social Compliance Audit

All enterprises need to remember their social responsibilities and contribute immensely in that area as well. Entrepreneurs usually focus on their sales with the aim to increase client base. This does not mean that they would neglect their social commitments. Interestingly, businesses looking for long term profitability tend to be a lot more socially responsible. They understand that social responsibilities help companies develop fair practice programs. Such programs are important for the company to grow. Interestingly, social commitments make companies comfortable with social compliance audits.

A social compliance audit can be defined as a process of documentation where a company is made accountable for the social practices they undertake. This audit serves an important purpose in highlighting the business in a good way. As per United Nations, the main purpose of a company to conduct such an audit is to identify business driven programers for companies. This is done mainly to harmonize current efforts so that the work flow remains consistently good. Continuous attempts are made to improve working conditions in global supply chains.

People Accountable for Social Compliance Audits

People responsible for social compliance audits are basically brand manufacturers and retailers. A social compliance audit is a process that allows them to exercise control over the supply chain. It also makes companies socially responsible with high regard for good quality work.

Goals for a Social Compliance Audit

The main objective or goal for social responsibility audit is to manage the practices and programs of a company. Audits are also needed to document processes a company carries out with respect to the society, the environment and the company’s contribution towards their own employees and shareholders. Social compliance audits work on the basis of well defined goals that help auditors work better and effectively. These goals include paying attention to the labor laws, inspecting the safety conditions of employees and the workplace conditions.

Role or Contribution of an Auditor

Auditors have the authority to propose recommendations during a social compliance audit. But auditors do not have the authority to judge the present company that is being audited. Auditors need to remember that they shall always remain impartial and independent when audits are taking place. Their goal must always remain towards gathering evidence and reporting the findings they have collected.

When practicing social compliance audits, it is important to remember the above factors. In fact, auditors need to have clarity about their roles and contribute as much as they can during the audits.