The idea of social accountability has gained credence all over the world. Social Accounting and Audit helps organisations to evolve and strategise policies and practices that promote social capital and build harmonious relations between business and other segments of society. Respecting stakeholders beyond shareholders, contributing to the economic, social and environmental development of the communities in which it operates, conscientious stewardship, respecting human dignity, etc. are a few principles organisations need to adapt.
Social accounting and audit allows a socially responsible business to build on its existing monitoring, documentation and reporting systems to develop a process whereby it can account fully for its social, environmental and economic impacts, report on its performance and draw up an action plan to improve on that performance. Through the social accounting and audit process it can understand its impact on the surrounding community and on its beneficiaries and build accountability by engaging with its key stakeholders. In this way it can prove its value and improve its performance.