What is an optional, independent audit that evaluates a business's corporate social responsibility practices?

A social audit is an optional, independent evaluation focusing on a company's corporate social responsibility (CSR) practices. It examines how well a business is performing in terms of its social, ethical, and environmental responsibilities. This type of audit helps stakeholders, including shareholders, employees, customers, and the community at large, understand how the company's operations align with societal values and contribute to sustainable development.

The social audit process generally involves assessing the impacts of the company’s policies and practices on various stakeholders, documenting its CSR initiatives, and identifying areas for improvement. Companies might conduct such audits voluntarily to enhance their reputation, gain insights into their social impact, and demonstrate accountability in their commitments to CSR. This differs significantly from other types of audits focused predominantly on financial performance or legal compliance.