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    Chapter 5 - RD Moscosa

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    This document discusses social auditing and sustainability reporting. It outlines the benefits of social auditing such as credibility, improvement, and accountability. It also notes potential limitations like time and cost requirements. The document defines corporate social reporting and lists key dimensions as social, environmental, and economic. It provides examples of social reports and describes auditing the reporting process. Finally, it outlines several international standards used as criteria for sustainability reporting, such as the Global Reporting Initiative, ISO 14001 and ISO 26000.

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    Chapter 5 - RD Moscosa

    Uploaded by

    riclyniad
    32 views18 pages
    This document discusses social auditing and sustainability reporting. It outlines the benefits of social auditing such as credibility, improvement, and accountability. It also notes potential limitations like time and cost requirements. The document defines corporate social reporting and lists key dimensions as social, environmental, and economic. It provides examples of social reports and describes auditing the reporting process. Finally, it outlines several international standards used as criteria for sustainability reporting, such as the Global Reporting Initiative, ISO 14001 and ISO 26000.

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    CHAPTER 5 - RD MOSCOSA

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    This document discusses social auditing and sustainability reporting. It outlines the benefits of social auditing such as credibility, improvement, and accountability. It also notes potential limitations like time and cost requirements. The document defines corporate social reporting and lists key dimensions as social, environmental, and economic. It provides examples of social reports and describes auditing the reporting process. Finally, it outlines several international standards used as criteria for sustainability reporting, such as the Global Reporting Initiative, ISO 14001 and ISO 26000.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    32 views18 pages

    Chapter 5 - RD Moscosa

    Uploaded by

    riclyniad
    This document discusses social auditing and sustainability reporting. It outlines the benefits of social auditing such as credibility, improvement, and accountability. It also notes potential limitations like time and cost requirements. The document defines corporate social reporting and lists key dimensions as social, environmental, and economic. It provides examples of social reports and describes auditing the reporting process. Finally, it outlines several international standards used as criteria for sustainability reporting, such as the Global Reporting Initiative, ISO 14001 and ISO 26000.

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    of 18

    CHAPTER V: SOCIAL

    ACCOUNTING, AUDITING &


    REPORTING (cont.)

    BY: RICLYN D. MOSCOSA, CPA


    Learning Objectives:

    ´ To enumerate the benefits and limitations of Social


    Auditing
    ´ To enumerate the different dimension of social or
    sustainability reporting
    ´ To understand the concepts of auditing the social or
    responsibility reporting
    ´ To enumerate specific international standards as basis in
    the social or sustainability reporting process
    Advantages of Social Auditing
    Social Accounts which have been audited provides:

    ´ CREDIBILITY
    ´ IMPROVEMENT
    ´ VALUE
    ´ RELIABILITY
    ´ ACCOUNTABILITY
    BENEFITS & SNAGS

    ´ Sharpens the definition and focus of the ´ Time and effort is required
    organization
    ´ Cost of funding the activities involved
    ´ Extends accountability to main stakeholders
    ´ Recognition by stakeholders and others on the
    ´ Provides useful framework for all the activities value of doing
    of the organization
    ´ Reaching the views and opinions of non-
    ´ Gives credibility for the softer outcomes stakeholders who may be potential stakeholders
    ´ Measures the perceived social impact of the ´ Dangers of becoming a paper exercise only
    organization
    ´ Problems on the possibility of manipulating
    ´ Able to tie in with other audit process stakeholders views
    ´ Involves stakeholders in the organization ´ Complicating process through scientificating and
    professionalizing
    ´ Provides flexible and adaptable process
    ´ No current standard for the process
    ´ Stimulates honest external and internal
    appraisal of the organization ´ No recognized qualification of Social Auditors
    CORPORATE SOCIAL REPORTING

    A report published by a company or organization


    about the economic, environmental and social
    impacts caused by its everyday activities. It also
    presents the organization’s values and governance
    model and demonstrate the link between its strategy
    and its commitment to a sustainable global economy.
    (Global Reporting Initiative )

    “To align business activities


    with society’s expectations”
    STEPS OF SOCIAL REPORTING
    DIMENSIONS OF SUSTAINABILITY REPORTING
    Social
    q Concerns on the organizations impact to the social system within
    which it operates

    Environmental
    q Concerns on the organization’s impact on living and non-living
    natural systems, such as ecosystems, land, air and water

    Economic
    q Concerns on the organization’s impact on the economic
    circumstances of its stakeholders and on the economic system at all
    level
    EXAMPLE OF CORPORATE SOCIAL REPORT
    Auditing the Social Reporting Process

    Auditing the social or sustainability report is a process of ensuring that a


    company’s social or sustainability reports meets certain standards or
    guidelines.
    This should be verified by an independent external body i.e., external auditors.

    External auditors should ensure that:


    q The stakeholder engagement being reported did take place
    q The issues raised were accurately reported
    q The responses are genuine and incorporated in the daily business practices
    Benefits of Assurance Services in
    Sustainability Reports
    ´ It helps build trust in sustainability reports. Stakeholders will be able to rely on
    the information given in a report and that they can easily access the
    reports.
    ´ It confirms that the company is reporting in line with international standards,
    which may be required by law or internal policies.
    ´ It can help reduce legal risk associated with sustainability reporting by
    demonstrating that a company’s report is in accordance with the set
    guidelines.
    External Assurance in Sustainability
    Reporting
    ´ A company can publish its report independently, using their own data and
    analysis.
    ´ A company can use third party providers to help create or manage their
    report for them.
    ´ A company can submit its report to a third party organization that assesses
    the content and produces its own assessment against a standard set of
    guidelines.
    Different Types of Assurance Services

    ´ Third-party or peer review to assess a report against certain standards; this


    can be carried out by either an individual or a team.
    ´ Confirmation of data sources to help validate information in a report; this is
    carried out by an individual who assess whether the company has used
    credible and up to date for their report.
    ´ Certification of specific claims in a report; this can be carried out either by
    an individual group or group who check certain figures such as greenhouse
    gas emissions data against standards set by international bodies.
    International Standards which can be
    use as criteria in Sustainability Reporting
    AA1000 Accountability Principles
    ´ It is an assurance standard used by sustainability professionals for
    sustainability related assurance engagements to assess the nature and
    extent to which an organization adheres to the AccountAbilty Principles of:
    a. Inclusivity
    b. Materiality
    c. Responsiveness
    d. Impact
    ´ It focuses on the issues of completeness, materiality, regularity and
    timeliness, quality assurance, independent evaluation, public confidence,
    accessibility and information quality
    Global Reporting Standards (GRI) for Sustainability Reporting
    ´ It enable any organization – large or small, private or public – to
    understand and report on their impacts on the economy, environment
    and people in a comparable and credible way, thereby
    increasing transparency on their contribution to sustainable
    development.
    ISO 14001:2015 – Environmental management systems —
    Requirements with guidance for use)
    ´ It specifies the requirements for an environmental management system that
    an organization can use to enhance its environmental performance. ISO
    14001:2015 is intended for use by an organization seeking to manage its
    environmental responsibilities in a systematic manner that contributes to the
    environmental pillar of sustainability.
    ´ It helps an organization achieve the intended outcomes of its environmental
    management system, which provide value for the environment, the
    organization itself and interested parties. Consistent with the organization's
    environmental policy, the intended outcomes of an environmental
    management system include enhancement of environmental performance;
    fulfillment of compliance obligations and achievement of environmental
    objectives.
    ISO 14016:2020 - Environmental management — Guidelines
    on the assurance of environmental reports
    ´ This document provides principles and guidelines for assuring the environmental
    information an organization includes in environmental reports. It also provides
    guidance on:
    a. the output of the assurance engagement, i.e. the assurance statement and/or
    the assurance report;
    b. how the assurance engagement should address materiality, in terms of both:
    c. determining if material issues have been included in the environmental report;
    d. identifying any material misstatements and/or omissions.
    ISO 26000 – Social Responsibility
    ´ It provides guidance to those who recognize that respect for society and
    environment is a critical success factor. As well as being the “right thing” to do,
    application of ISO 26000 is increasingly viewed as a way of assessing an
    organization’s commitment to sustainability and its overall performance.
    ´ It helps clarify what social responsibility is, helps businesses and organizations
    translate principles into effective actions and shares best practices relating to
    social responsibility, globally. It is aimed at all types of organizations regardless of
    their activity, size or location.

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