A social audit attempts to measure a company’s actual social performance against the social objectives it has set for itself. A social audit may be conducted by the company it-self. However, one conducted by an outside consultant who will impose minimal biases may prove more beneficial to the firm. As with a financial audit, an outside auditor brings credibility to the evaluation. This credibility essential if management is to take the results seriously and if the general public is to believe the company’s public relations pronouncements .
Social audit is an organization’s systematic review of its performance in the area of social responsibility activities; assesses the firm’s short and long-run contributions to society.