Social Accounting – measuring impact. emphasis on early intervention to reduce the need for late, high cost crisis action; emphasis on early intervention.

Social Accounting – Social Accounting – measuring impactmeasuring impact

emphasis on early intervention to reduce the need for late, high cost crisis action; emphasis on early intervention to reduce the need for late, high cost crisis action;

emphasis on early intervention to reduce the need for late, high cost crisis action;

What is social accountingWhat is social accounting

► Social Accounting is the process Social Accounting is the process whereby an organisation can whereby an organisation can accountaccount for its social performance, for its social performance, reportreport on on and and improveimprove that performance. that performance.

► It assesses the social and It assesses the social and environmental impact and the ethical environmental impact and the ethical behaviour of an organisation in relation behaviour of an organisation in relation to its stated values and objectives and to its stated values and objectives and to the views of its stakeholders.to the views of its stakeholders.

► From Social Audit Manual – produced by CBS NetworkFrom Social Audit Manual – produced by CBS Network

Where did social accounting Where did social accounting come from?come from?

►Emerged from community enterprise in Emerged from community enterprise in early 1990s – reasons…early 1990s – reasons…

►Developed through working with social Developed through working with social enterprises – stress empowerment!enterprises – stress empowerment!

►Social Audit Network of practitionersSocial Audit Network of practitioners►Manual and Quality and Impact Project Manual and Quality and Impact Project

20052005►Revised methodology in 2008 + Revised methodology in 2008 +

wallchartwallchart

Getting ReadyGetting Ready

► Getting Ready: Understanding social Getting Ready: Understanding social accounting and audit – (do we want to accounting and audit – (do we want to do this?)do this?)

►What does it involveWhat does it involve►What are we already doing What are we already doing (exercise1)(exercise1)

►Are we committed to doing it Are we committed to doing it ► Financial and people resourcesFinancial and people resources

TheThe three stage processthree stage process

► Step One: Social, Environmental and Step One: Social, Environmental and Economic Planning – (who are we?)Economic Planning – (who are we?)

►MissionMission►ValuesValues►Objectives and ActivitiesObjectives and Activities► Key stakeholders.Key stakeholders.

StepStep TwoTwo

► Social, Environmental and Economic Social, Environmental and Economic AccountingAccounting – (how are we doing?) – (how are we doing?)

► decide on the scope of the auditdecide on the scope of the audit► agree the indicators to measure agree the indicators to measure

performanceperformance► identify qualitative and quantitative identify qualitative and quantitative

information information ► carry out the stakeholder consultationcarry out the stakeholder consultation

StepStep ThreeThree

► Social, Environmental and Economic Social, Environmental and Economic Reporting and Audit - (reporting back and Reporting and Audit - (reporting back and moving on)moving on)

► collate information and write up accountscollate information and write up accounts► present draft accounts to an audit panel present draft accounts to an audit panel ► make changes as recommended by panel – make changes as recommended by panel –

leading to audit statementleading to audit statement► feed back findings to stakeholdersfeed back findings to stakeholders

SocialSocial Audit: the Audit: the PrinciplesPrinciples

► Clarify purposeClarify purpose► Define scopeDefine scope► Engage stakeholders – (multi-perspective)Engage stakeholders – (multi-perspective)► Determine materialityDetermine materiality► Make comparisonsMake comparisons► Be transparentBe transparent► Verify accountsVerify accounts► Embed the processEmbed the process

SocialSocial Audit: Organisational Audit: Organisational Key AspectsKey Aspects

1.1. People – staff, volunteers, policies, People – staff, volunteers, policies, engagementengagement

2.2. Good Governance - Good Governance - 3.3. Asset lock and use of surplusAsset lock and use of surplus4.4. Financial sustainabilityFinancial sustainability5.5. Environmental sustainabilityEnvironmental sustainability6.6. Financial and economic impactFinancial and economic impact

TheThe Social Audit CycleSocial Audit Cycle

Cycle Diagram

Snags and Benefits Snags and Benefits (exercise 2)(exercise 2)

► Pair up with someone Pair up with someone ►Discuss what you see as the Discuss what you see as the

snags and benefits of social snags and benefits of social accounting accounting

►Group feedbackGroup feedback

The Benefits of Social AuditThe Benefits of Social Audit

► effectively monitor and steer performanceeffectively monitor and steer performance► allow “stakeholders” to affect behaviour allow “stakeholders” to affect behaviour

and influence policyand influence policy► accurately report on achievementsaccurately report on achievements► assess social, community, environmental, assess social, community, environmental,

cultural added-valuecultural added-value► improve social performanceimprove social performance► an internally generated and externally an internally generated and externally

verified processverified process

From Social Audit Manual – produced by CBS From Social Audit Manual – produced by CBS NetworkNetwork

Other feedback …Other feedback …

► In some cases social audit process has In some cases social audit process has helped to secure new funding packageshelped to secure new funding packages

►Has helped some groups in addressing Has helped some groups in addressing major governance issuesmajor governance issues

►Has helped some groups develop new Has helped some groups develop new policiespolicies

►Has helped groups to measure Has helped groups to measure additional benefitsadditional benefits

[the rationale for government funding [the rationale for government funding investment]…investment]…

emphasis on early emphasis on early intervention to intervention to

reduce the need for reduce the need for late, high cost crisis late, high cost crisis

action;action;

John Swinney – letter to COSLA June 2010John Swinney – letter to COSLA June 2010

Example –Out of School Care Example –Out of School Care providersproviders

►Were able to verify the quality of Were able to verify the quality of childcare provided from the view of childcare provided from the view of a wide range of stakeholdersa wide range of stakeholders

►Consultation with parents gave Consultation with parents gave good feedback on the economic good feedback on the economic benefits through increased benefits through increased disposable incomedisposable income

►This information could be used to This information could be used to show the local economic multiplier show the local economic multiplier effect of the provisioneffect of the provision

The essence of social The essence of social accountingaccounting

►……..accounting for what we do and ..accounting for what we do and listening to what others have to listening to what others have to say, so that future performance say, so that future performance can be more effectively targeted can be more effectively targeted at achieving our chosen at achieving our chosen objectives….objectives….

For more informationFor more information

Social Audit NetworkSocial Audit Network

socialauditnetwork.org.uksocialauditnetwork.org.uk