History and Significance of CSR and Social Audit in Business: Setting a Regulatory Framework

Abstract

Business’s interest for social concern is not new. But, businesses core function is always driven towards financial performance. Businesses concern for social causes is evident from the philanthropic exercises that grew along with the growth of industries. To assess the financial, and the social performance of businesses, a systematic reporting mechanism was very much essential. Social audit is a mechanism for monitoring, measuring or appraising social performance largely in economic terms, primarily based on improving social activities, increasing public relations, and Corporate Social Responsibility also evolved as a philanthropic exercise and as consciousness grew, it became an integral element of the core business policy. This paper explores the patterns business adopts as an efficient Social Audit System, and tries to reach the aspirations of the stakeholders, discloses the information, and also develops a system of accountability which is best suited to the need of business and society. This paper systematically analyses guidelines and standards set by trans-governmental and private bodies, to arrive at a regulatory perspective for Corporate Social Responsibility (CSR) and Social Auditing in Business.