1.3 Organisational objectives
Why is CSR so important? Click here for a PDF that explains.
Video link - Inside FoxConn
Guardian news story - How Apple has become more ethical under Tim Cook
Social Auditing
Social auditing is the process whereby an organization assesses its impact on stakeholders and wider society. It involves measuring and reporting on its social performance, assessing the performance, and looking at how improvements can be made.
Note, unlike financial reporting there are no legal obligations to carry out social audits. However, like financial audits they are usually conducted by independent organizations.
An environmental audit only considers environmental issues. These are commonly undertaken by businesses that can have a large environmental impact e.g. energy companies.
Social audits are only truly of value if businesses respond to them. Simply conducting an audit without any follow-up does not make a business socially responsible.
A key part of the auditing process is devising CSR policies, e.g. increasing the use of sustainable resources, or only working with socially responsible suppliers.
Task - Use the following link to write a short report illustrating how two businesses that make up the Richemont group have implemented socially responsible policies.