Social Audit and Social Accounting is not new, but the movement (through the Social Audit Network) is trying to improve its reach and image as of late with the re-release of a training manual and accompanying CD. I have looked into the documentation for social accounting and found it to be overly cumbersome. Frankly, it looks like something dreamed up by consultants. That sounds a bit negative, but I do think there is a place for social auditing and accounting. I think we must quantify how good you are at fulfilling your social mission and this test needs to be rigorous. However, let’s focus on sustainability before overloading the organisations with reams of data collection. Examples of organisations taking on this paperwork are listed here.
Adding a laborious and tedious process to measure social enterprises’ missions is counter-productive at this stage, and I would argue-any stage. While the collection of vast amounts of data during an audit or preparation of accounts will provide a broad base of meaningful results, it is more akin to the social enterprise as council service, not social enterprise as commercial venture with a defined social mission. The latter of which I predict is the future of social enterprise. In fact, the Social Audit Network realizes this shortcoming and encourages the enterprise to “do as much as you can” in the audit. If we all understand it’s cumbersome, why not redesign the system to be more integrated with social enterprise operations.
Many may argue that creating an oversight body to carry out the audits across the sector is the answer. Hmmm, I am not sure we need another quango drawing down funds to feed a consultancy frenzy. Besides, in the end, the social enterprises will have to supply the data–returning the overhead to the organisations with the least amount of resources. If we want social enterprise to thrive, increase its impact, and realize the potential of the 3rd sector, we must innovate. This includes the sector’s measurement systems.
I suspect this view is a minority perspective. In fact, I noticed that John Pearce, the respected author of Social Enterprise in Anytown, is on the list of registered social auditors and the New Economics Foundation is backing the social audit movement. However, my customers would be hard pressed to spend time and resource on an audit in lieu of more services focused on their mission.
To be fair, I have not directly engaged the Social Audit Network, but I think the time is here to enter into a dialogue on the subject of the audits and accounting. Perhaps the resources of the nef can be directed at innovation in social accounting.
What do you think? Am I missing the point? Is there a better way?
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I think social accounting is vital but I agree, the Social Audit Network stuff is tedious in the extreme. But it’s not the only route into social accounting, and you’ll find social businesses who’ve managed to do it without boring everyone in the process. Have a look at http://www.frcgroup.co.uk for an example. Guardian Newspapers did a good one too: http://www.guardian.co.uk/values/socialaudit
I’m sure SAN will say that the process is important, and I’d agree, but surely it can be made more user friendly.
And I can’t help but take the bait with your digs at consultants – we’re not all bad! – check out http://www.socialbusinessconsulting.co.uk for another way to do consultancy in the social enterprise sector.
cheers
Rob
I came across this today – a social accounting initiative which seems to be aimed at social enterprises which are just starting on the road to social accounting – it appears pretty user friendly and adaptable
http://www.proveandimprove.org/new/
You can download the resources for free or buy them for £20.
I think the Social Audit Network have been involved, so they may well have shared some of your concerns!
Whilst we’re on the subject, the New Economics Foundation’s website, (they’re the people behind this toolkit) – is well worth a look
http://www.neweconomics.org
Thanks
Rob
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The rise and rise of social auditing has worldwide ramifications!. Becasue the role of the UK in development aid is respected much of what happens in the INGO and NGO sector in poor countries (what we call developing countries) follows the trends in the UK voluntary sector. Here in Kathmandu I attend the ‘Capacity Building Working Group’ of the Association of Inernational Non-Governmental Organisations’ on behalf of VSO. Before I arrived they invested heavily in developing a large policy document on …..Social Audit. I will be looking carefully at Rob’s suggested sources for something far more slimmed down than what has been done here. Right now I am in the process of editing it – the magnum opus I mean. Large quantities of bureaucratic gumph is stifling initiative in what is already a tough situation here – so we are relying on you guys not to produce War and Peace when something simple will do.