Complete Audit: A new look at social audit

Abstract

It is a Research paper. The purpose of this article is to evaluate the current state of social audit. Analyzed the importance of social audit in every social activity. Universal imperatives of social audit are shown with examples. The development by public or private sector is discussed with their social achievements. This research paper also consist the availability and use of social audit method.  In this paper it tried to show that how it is important in present time. Social Cost and Social Profit can easily understand here with article. Social Audit is not a evaluation of social cost and social benefit while it is a evaluation of  every action which is done for society.

Keywords: Social Cost, Social Profit, Services, Transparency and Responsibility.

From the very beginning of Vedic Era Social Responsibility and Social welfare have been kept on top priority in Bharat and even the goal of Social Welfare has been achieved. But the current model of development could not prolong for one hundred years because it created a kind of narrowness in human emotions and its Thinking.

In present time, to fulfil civic need and Implementation of Schemes, Bharat is using two kinds of means to obtain the target (Social welfare). They are ornate as Private and Public (Government) Sector respectively.When we discuss the progress of these sectors, in the context to the fact of above, has evaluated as follows:

Analysis-

It is clear from the above tabulation study that Bharat has made a good Progress in private sector during 2001 to 2009. During this period only three fields are in private sector where they were noted reduction in paid up capital. Here it is notable that whether the loss shown by private sector was real one? This loss may result of internal mismanagement or result of processing or other causes (which were ignored). But in New trends show Profit in these three fields too. We must mind it that Natural resources of any country may not be treated as personal Assets for any industrialist while every civil citizen has equal rights for it. Statically analysis also shows this Profit from these Assets is being accumulated for a particular or groups i.e. few industrialists.  

Another aspect of this study is that inspite of a common man’s right on natural resources or an asset, private sector is getting a continuous increase in its capital that indicates unexpected growth in profit. it is clear indication of disobeying tax system because one side company’s capital is increasing (means gaining profit) and other side collection of tax is remains constant. Such type of situation creates economic disparities and is beyond the imagination of equal rights for all in any nation. It is a good thing that government of Bharat has taken some positive steps towards this situation. In the resultant of it, Bhartiya government shows positive attitude and amended Bhartiya Company Act., by adding a new section. It makes the corporate responsibility (CSR) in context of social cost and profit. Now CSR is solid relevancy of social audit in Bharat.

SOURCE: MINISTERY OF CORPORATE AFFAIRS

Note:  From 2006 onwards, total of manufacturing is available

Analysis

Public sector, for a democratic country like Bharat has been considered a better source for development. By statically Analysis it is finding that public sector has made a good progress and gaining profitable condition in Bharat. But if we analyse it on the basis of Social Audit (as a broad meaning) we find that there is a great difference between real development and the work shown on paper. It is evident from the analysis that we are still struggling for development. In other words we are so far from the target of development and there is more to be done in this context. For example, public sector shows a considerable increase of 44.54 million average capital formations in the field of power, water and gas but it does not mean that we have fulfilled the demand of common man in this regard. The same condition can be seen in the other fields also where the result is not much different. Now we can analyse a government scheme through another example. We can take JSSY (Janani and shishu surksha Yozana or mater) it is implemented through NRHM (National Rural Health Mission) in Bharat. This scheme has some objectives such as: To reduce maternal and infant mortality rates (MDR & IDR); to ensure safe Institutional delivery; to ensure the health of mother and baby. To achieve above objectives and civic awareness, incentives and transportation charges on the provided by the government to all (including who have more than two babies). It is indirect violation of national Population Control Policy. According to statistical department of Bharat, 20% growth recorded since the start of the scheme. Thus this is an example of Social Cost occurring by government. Exploitation by a government can easily noted in Bharat by using contractual employees at low salary. It is another example of social cost increasing by government.

Thus Public sector is accelerating social costs. A intensive analysis shows that The public sector is struggling for its existence at the present time.

What is Social Audit?

Social audit is a continuous process whereby any monetary or non-monetary social activity is evaluated in a manner so that goal of public welfare can be achieved with full transparency, social accountability and cater to the of society needs.

In other words we can say “Social audit is a continuous process whereby any monetary or non-monetary social activity is evaluated in a manner so that goal of public welfare can be achieved with full transparency, social accountability to meet the needs of society.”

A Monthly Magazine named ‘Gramin Bharat’ defines Social Audit as- “Social Audit is the name of that parliament where all activities of each Project are audited.”

Social audit can be summarised like –

"Social audit, audits entirety, holding that the totality process under which enforcement action, implementation, results and evaluation of accounting is righteous so that goal of public welfare can achieve by with full transparency, social accountability and Ensure extensive participation in the overall development.”

Evolution of Social Audit

Social Audit in Bharat: In Vedic era (5000 BC) The tradition of accounting and evaluation functions based on the evidence it can be found that The social audit has been practiced in India since ancient times. ‘Kautilya ka arthsastra’, Manusanhita’, ‘SukraNeeti’texts such as social audits in India are witness to the existence of antiquity.

In Mnusnhita(200BC to 200AD) the Profit and articles related concept is clearly mentioned. in verse number 127 of chapter 7 in manusanhita It is clearly stated about determination and uses of tax paid to state. It is stated that Determination of tax must be after considering the cost, sales, and distance, expenditure on food, safety and collection cost while use should be based on righteous. In addition, it can be said about Shukraneeti (clearly nothing can be said about its period but it was associated with 10th century) that A large portion of the world was in the late. Even in bharat, literature and ideology related to accounting and social responsibility were available (solid evident is available regards). Professor Shukr made it clear by the tax revenue based polity discrimination that how income should be spent so as to maximize public welfare.

In Kautilya Era, Professor Kautilya emphasises on the necessity of best utilization of wealth with proper Audit. It must be done in proper way with honesty. According to Kautilya State tax revenue and income must be from the same source whereby people of the state do not have any bad effect (even direct or indirect). Sense of a verse from kautilya’s book named Political Science also stated that Even if revenue is low but the state is forbidden to use of impolicy to increase in it.

In Bharat, TISCO (Tata iron and steel company limited) is credited with ushering in the modern social audit. TISCO used modern social audit in 1979. Thereafter, significance in public schemes of it could be maintained only by 73rd constitutional amendment in Panchayti Raj.

For Social development in Bharat after independence government of Bharat invested a million corers Rupees through native or foreign institutions in the country. But in equitable way expenditure in this investment neither estimated nor test of the devastation in spite of development in community. Bad effects emerged from Planning and implementation of these programs is forced to think about the acts of the government.  Today, plan maker and Policy Determinants have no way of removing these bad effects.  At the present time, rather than the proper implementation and evaluation is considered more important than monetary income and expenses. The financial audit is very much in vogue to have to take because financial audit have a significant and universal method while financial audit is also a branch of social audit. Ironically, the social audit is essential to present the caps on the sidelines.

Unnecessary social costs are borne by society and its growing side effects with the Planning Commission; Government of Bharat is also concerned. Today, Not only in India but throughout the world, except to some scandalous social audit is not showing any interest or credibility.

History Social Audit in rest of the world: except India, A history of social audit is not long ago in the rest world. Here around 1940 is considered the infancy of society.

NEED OF SOCIAL AUDIT

Mainly need of social audit is due to prevention of exploitation of public and misuse of natural resources in the name of public welfare by someone. This type of exploitation can be seen in any government schemes, or in any business activity or activity implemented by NGOs too.

India's poor fiscal policies and plans, such as the law's weaknesses can be seen easily helplessness.  Today the need for full-fledged social audits has shown exigencies. At the present time, the developing country like Bharat, the biggest challenge is to have full control over NGOs and private Sector, and have a better coordination of these with the public sector. This challenge is impossible without Implementation of Social Audit. 

REPORT ON SOCIAL AUDIT (A CASE STUDY)

India is a country of many variables. Here are only a few steps of the walk mores change is coming (here people varies their mores after few steps of walk.). There are many variations to the requirements of the people. That's why here appropriate and right policies and determining appropriate decentralization is possible.

The current requirement of research concerning social audit branch of the Faculty of Commerce holds high expectations. Currently lack of the proper method of social audit the many questions are arising on current method and research. If there is a proper method of social in the world and bharat then-

- Why each scheme are tested not only his righteous since the introduction?

- Why indifferent to the social cost & social accountability of development and the economic benefits of each dimension is marching toward?

- Why the basis of the evaluation of social satisfaction and profitability with social and economic advantage is not being taken?

- Why legitimate accomplishment is sidelined at every level of evaluation?

- Why do not the monetary or non- monetary social actions such as social concern?

- Why social audit are not considered as complete audit?

- Why social audit is considered more important financial audit, while financial audit is also a branch of Social Audit.

- Why is universally accepted as a method of social audit financial audit could not be kept up to date on the world stage?

SOCIAL AUDIT AND OTHER AUDIT

Current perspective of social audit is being viewed like any other audit formats. The present scenario of use of social audit is as optional type. It is employed by the closure. In fact, all type of audit is various branch of social audit.

CONCLUSION

At the present time, notwithstanding marginal social audit is a key requirement. Depth study claimed that bharat facing several problems which poses in implementation and evaluation of every social activity as a trouble. In term of study, we may divide them into five types. As- 1. Social problems 2. Economic Problems 3. Legal & political problems, 4. Managerial problems & 5. Research problems.

In an atmosphere of corruption and inaction Social audit is not only necessary but also for better governance is a critical imperative. In the field of social audit research work is still insufficient. For a better social audit methodology the research work should essentially continuous in the world. The Legitimate Accomplishment concept may lead and strong impression in the development of a better and appropriate method of Social audit.

The essence is that social audit can be a system which can possible a compendious method for all kinds of Auditing and evaluation methods. Though in the present time there is no logical and universal method of social audit in the world however legitimate accomplishment concept may see as raw format of social audit for future. Conclusion is this there is huge need of intensive and high class research work in the field of social audit. At the end of my this article I will like to write that “Social Audit is not a evaluation of social cost and social benefit while it is a evaluation of  every action which is done for society.”

References

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By: DR. NEERAJ MEEL  (Ph.D. NET-JRF, DIT, ADCA, DTA)

Meelon ki Dhani village and Post- Katrathal Distt. –Sikar State- Rajasthan

E-Mail- dr.neerajmeel@gmail.com