**Social Audit**

Social audit is defined as the systematic assessment of the social impact of the activities of a business firm. It involves the evaluation of a company's social performance by measuring and reporting on its social and environmental impact. The purpose of a social audit is to measure the social responsibility of a company and to identify areas where improvements can be made.

**Importance of Social Audit**

Social audit is an important tool for businesses to ensure they are acting in a socially responsible manner. It helps companies to assess their impact on society and to identify any negative effects they may be having. By conducting a social audit, businesses can identify areas where they can make positive changes and improve their social performance.

**Process of Social Audit**

The process of conducting a social audit typically involves the following steps:

1. **Defining the Scope**: The first step in a social audit is to define the scope of the assessment. This includes identifying the key areas to be evaluated, such as labor practices, environmental impact, community engagement, etc.

2. **Data Collection**: The next step is to gather the necessary data to assess the company's social impact. This may involve collecting information from various sources, such as employee surveys, community feedback, environmental impact assessments, etc.

3. **Data Analysis**: Once the data has been collected, it needs to be analyzed to identify any trends or patterns. This analysis helps to identify areas where the company is performing well and areas where improvements can be made.

4. **Reporting and Communication**: The findings of the social audit should be reported and communicated to relevant stakeholders, such as employees, shareholders, customers, and the wider community. This helps to create transparency and accountability.

5. **Action Planning**: Based on the findings of the social audit, an action plan should be developed to address any areas for improvement. This may involve implementing new policies and procedures, setting targets, and monitoring progress.

**Conclusion**

In conclusion, social audit is a systematic assessment of the social impact of a business firm. It helps companies to measure and report on their social performance and identify areas for improvement. By conducting a social audit, businesses can ensure they are acting in a socially responsible manner and making positive contributions to society.