Social Auditing: Relevance To Commercial And Corporate Entities

Research Background

Social auditing is a procedure which allows an institute to evaluate and exhibit its corporate, social and conservational impressions both positive and negative. It is a means of determining and gauging the magnitude in which an organization accounts for the collective ideals and aims it sets itself to. Social auditing gives an evaluation of the influences of a non-fiscal goal through methodically and frequently watching its performance and the opinions of its investors (Epstein, 2006). The process entails the indulgence of shareholders which comprises of contractors, volunteers, consumers, sponsors, traders, staffs and local citizens concerned with the organization. The audits are developed by individual companies, or those inherently involved after that where a panel of people with no affiliations to the organization validates the audits’ impartiality and accuracy.

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Currently, worldwide organizations encounter a wide range of barriers in the sense of responsibility towards humanity and the environs. One means by which these challenges could be managed is to engage the use of social reviewing to help them advance their status and how they are perceived by their investors (Zairi & Peters, 2002).

Research Background

With increasing competition and shifting the marketing logic to the services dominant logic from the goods dominant logic the perceptions of the business communities have changed drastically. In this new concept, the business organizations are providing great emphasis on the customers. At present, for the business organizations, the customers are most important. Hence the reactions of the customers on the organizations are vital for the organization, and most of the business policies and marketing strategies are formulated by keeping the customers at the center (Berk and DeMarzo, 2012). The customers of the organizations are the part of society; hence, the organization urges to review the perceptions of society about their corporate, social and conservational performances. Apart from the in the last few decades, the applications and importance of corporate social responsibility (CSR) have been increased immensely. Most of the people and the organization are concerned about the CSR strategies and CSR performance of the organization as social accountability of the organizations is a much discussed topic in the modern society. In this context the organizations need to explore the perceptions of the society about the organization; thus, need to perform the social audit.          

Problem Statement

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The performances of the business organizations are largely dependent on the societies, where the organizations operate their business. Especially, the marketing and selling activities of the businesses are immensely dependent upon the societies where the consumers exist because of the sale volume or productivity of the organizations reliant upon the society. Hence, the organizations need to audit their impact on the society and the perceptions of the people about the society (Carrel, 2010). The problem statement of the project is how to analyze and investigate on how social auditing is relevant to commercial and corporate entities globally, its effects to consumers and an organizational workforce.

Problem Statement

Aims and Objectives

This project aims to study and investigate the effects of company collective accountability in the lucrativeness of businesses. The objectives are:

  1. To evaluate the impact of social auditing on company performance
  2. To analyze the tangible and fiscal gaps between requirements and means accessible for indige nous development
  3. To generate consciousness among recipients and providers of native communal and prolific services
  4. To improve effectiveness and value of indigenous development agendas

As per the aims and the objectives of the research is concerned, the social auditing is defined by the theoretical framework as it is surrounding the control and also monitoring the forms of the auditing. It is simply surrounding the construction of the study which is established in the form of the relationship as it is described in this study. The simple enhancement of the study can be simply made by illustrating the buyer-supplier relationship and also the theories are related to the social auditing process as is surrounding the performance of the company (Fukukawa, 2014). Therefore the social areas and the financial auditing is being made in the form of illustrating the work as it is describing the understanding of the categorization. The progress is being made by illustrating the concepts of the social audit which are being explained in the form of the study and also the production with the distribution must be taken care off for the purpose of providing satisfaction to the end customers (Zu, 2009).

As per the coordination of the network is considered for the study, it is simply circulating the production and the distribution of the products to the end suppliers appropriately. The improvement of the supply chain in the companies depicts the improvement of the competitive abilities and also the enhancement of the study and also it is surrounding the appropriate structure which is being explained in this case (Gond and Moon, 2012). The companies are involved in undertaking the social responsibilities that are involved in illustrating the prior practices and also the concerns regarding the CSR issues has driven to monitor the suppliers for the increasing the process of supply.

As per the research, the vital argument is surrounding the implementation of the social auditing in the processes conducted by the companies for the purpose of perceiving the control. It is simply putting the in-depth emphasis on the social audit concepts which are depicted to be very much useful for the purpose of managing the needs of the organization and also the rational focus is being made on the control. The monitoring is defined to be a type of the rational control which is implemented for the purpose of conducting the control mechanism with monitoring (Griseri Paul. and Seppa?la?, 2010). This is defined to be an effective method which helps in minimizing the risks of the opportunist behavior and also the theories are related to being based on the beliefs that all the employees of the companies must consist of the potentials for the developing their organization in which they are working. Therefore the practice of the social auditing is supporting the companies with providing the process of the monitoring the actions and also the social auditing is also included in the supply chains processes conducted by the companies. The CSR implementation must be made for the purpose of relating to the mutual respect and also the sharing of the goals with the commitment can be easily characterized by trust (Haerens and Zott, 2014). The procedural justice can be easily achieved with illustrating the fairness between the suppliers and the buyers which simply helps in strengthening the buyer-supplier relationship. 

Aims and Objectives

Research Hypothesis

The Null Hypothesis for this research study will be:

H0: There is no positive relation between the social auditing and the performance of the commercial and corporate entities.

The alternative hypothesis for this research study will be:

H1:  There is a positive relation between the social auditing and the performance of the commercial and corporate entities.

Conceptual Framework

The conceptual framework as defined in this case is simply explaining the theories which are surrounding the social audit. The theoretical explanation of the social audit with structuring the usefulness in the companies is provided, and also the relationship with buyers and the suppliers are being determined in this research (Hawtin, Hughes and Percy-Smith, 2007). The tangible and the intangible gaps are also explained in this case with illustrating the indigenous developments in the agendas and also the relationship between the communal and the prolific services are explained in the literature review.   

Research Methodology

The research methodology is one of the most important chapters of the research study as this particular chapter provides the conceptions that help in selecting the most suitable tools and techniques as per the characteristics of the research topic and the requirements of the study. Hence, the research future is largely dependent on the selection of the proper tools and techniques for the research study (Horngren, 2014). The applications of the research onion help in recognizing the most accurate tools and techniques for the undertaken research. As per the nature of the research study and the requirements of the study the mixed methodology has been adopted for the research that will help in accumulating a widespread as well as in-depth knowledge of the research subject.   

Research Philosophy

The research philosophy is important as it helps in defining the progress of knowledge collected throughout the research study. Besides this, it also assists in distinguishing the characteristics of knowledge so that support in recording a superior description of the research progress. There is three common research philosophy used by the researchers: positivism, realism, and interpretivism (Kim, Nofsinger and Mohr, 2010). As the positivism research philosophy support in positive checking of the information and the research process hence, the positivism is selected as research philosophy. 

Research approach

The progress pattern of the undertaking research can be determined by the research approach. There are mainly two types of research approaches: deductive approach and the inductive approach (Ketchen and Bergh, 2007). The deductive approach supports the idea of observation of different source of information, and it suits the pattern of the undertaken research study; hence the deductive approach has become the choice of the study.       

Literature Review

Research design

According to the need of the research subject, a descriptive design for the research has been adopted that helps in the analysis the collected data in more detail ways. There is more different types research design used by the researchers such as explanatory design, exploratory design, etc. (Koutra, 2013). However, as the descriptive design helps in extracting the reason the occurrences with the verification theories of the research study.

Research Data

Data is vital for the research as it help in representing the results of the research study in a proper manner as well as the data improve the quality reliability of the research. There are mainly two types of data: primary data and secondary data. The data collected from the literature reviews are the secondary data, and the data collected by the researcher is called primary data. The secondary data help in forming a basic idea about the research topic and the primary data provides a current situation of the research subject. The primary data again of two types quantitative data and qualitative data (Krivogorsky, 2012). The quantitative data collected from quantitative research and provides a widespread conception about the topic. Alternatively, the qualitative data collected by qualitative research that help in gaining deep detail idea about the research topic. For qualitative study, interviews are conducted among the senior managers of an organization. Moreover, for quantitative research, a door to door survey has been conducted among the people of the society.


For interviews, the senior managers of an organization are considered, and 20 managers are interviewed for this purpose. A semi-structured questionnaire has been used for the interviews. For survey, more than 100 people are surveyed by random sampling process, and from them, 100 well filled up survey paper have been selected (Mallin, 2016). A well-structured questionnaire with multiple choice questions has been used, and from the result, numeric data has been collected.


Two type’s variables have been applied for the research the perception of the people is independent variable, and the economic performance and CSR performance are dependent variable for measuring the research study. 

Data analysis

The data analysis is vital for the research. For quantitative research, a statistic analytic tool is used and for the qualitative data has been collected in a descriptive way and analyzed in detail (Manos and Derori, 2016).    

Procedure Chart


Main Actions/ Stages

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Subject choice and its scope


Recognition of secondary data sources


Foundation of Research proposal


Groundwork of literature review


Explanation of research methodology


Making interview/survey, ethics form


Assembling primary data


Analyzing data


Comparing findings


Conclusion & recommendations



Finalizing & submission



The following approaches and policies will be carried out to examine the need for this project efficiently. These are;

  1. Surveys

Research Hypothesis

A lot of data will be gathered through surveys. This will include handing out of questionnaires, analyzing company balance sheets and performance deterioration or improvement it has undertaken after a social audit. Probing company stakeholders on the changes they perceive were brought about by social auditing (Neuman, 2002). This will be carried out by in-person surveys, telephone surveys, mail surveys and online surveys with the inclusion of incentives for people who complete the surveys as accurately as possible to increase and improve the amount of response.

  1. Observation.

Such will be carried out by monitoring consumers and all the entities directly involved in an organization’s development and growth. This will include watching them within their work environment with help from external parties. This will provide a much more precise picture of the impacts of social auditing on the corporate workforce.

  1. Documentation and prose analysis

This is going to be done by collecting available and accessible statistical data which has been already generated by different and reliable sources. This is going to include journals, internet information, books and newspapers and company reports. Studies done by various sources that have been documented will also be another source (Kothari, 2004). The research methodology will be of a mixed method that is, both quantitative and qualitative analyses methods. Qualitative analysis will be utilized by the surveys and observational methods while quantitative analysis will be accomplished by the use of data from online sources, company reports, books, and newspapers.

The analysis is undertaken in the form of implementing the mixed methodology. The qualitative analysis made in the form of the surveys and the interviews are conducted as per the analysis is being provided. The development of the structure is being made by illustrating the positive results as it is being made in the form illustrating the social auditing implementation in the companies are beneficial or not. The explanation of the work is surrounding the social auditing, and its relevant characteristics are measured in the form of the commercial and the corporate entities (Martin, 2006). The interviews are conducted by the 20 managers, and also the 100 respondents are undertaken for the survey process for the analysis of the research. The results are proven to be positive and also are satisfying the aims and the objectives of the research as it is being undertaken in this study. The social audit process is also providing the appropriate facilities to the increase the potentials of the corrective action plan, and also the improvement in the codes of the conduct can be easily undertaken.

Conceptual Framework

The social auditing play vital role in the organization as it helps in recognizing the perceptions or views of the society about the organization. Hence, its importance in the contemporary organization is gradually more increased. The undertaken research adopted a mixed methodology to conduct the research. In the quantitative research, the people of the society are surveyed, and they provide adequate information about the company’s social accountability initiative and their views about the company (Morsing and Beckmann, 2006). Moreover, the managers also contribute with their valuable knowledge in the qualitative research. Therefore, it is recognized that social auditing has a substantial contribution to the organizational performances.        


As per the research finding and results it is concisely perceived that the social auditing plays crucial role for the organization as with the help of the social auditing the organization can be able to recognize the perception of society on the organization. It supports in analyzing the corporate, social as well as the conservational impression of the organization on the society (Noronha, 2015). The impression can be positive as well as negative the social auditing help the organization in collecting the information that helps in measuring the social impact of the organization. Moreover, it will help the organization in devising more effective strategies that support in improving the performance of the organization. It also supports in analyzing tangible and fiscal gaps between the needs and for real development of the organization. It also supports in improving the effectiveness and value of the actual growth plan (Scott and Jacka, 2011). Above and all, it increases the awareness of people about the organization that will help the organization in growing.         


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