Social Audits. Community Development Audit

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The organization affirms the interdependence of its enterprise with the well being and self-reliance of the community. The organization builds enduring and mutually beneficial partnerships with the communities in which it operates and with which it interacts.

Community Involvement:

  • The organization’s community partnership policy is in written form and is publicly available. The policy commits the organization to forging enduring community partnerships and long-term relationships that contribute to the quality of life in the community.
    • Obtain a copy of the policy and review with BOD member. Determine if the organization has made a formal commitment to community involvement at the top.
    • Discuss community involvement with management (or individual in the organization responsible for community development), including objectives, policies and procedures and review mechanisms.
  • The organization provides information on local and regional social issues to its stakeholders through events and services, including Company newsletters, “brown bag” sessions and public bulletin boards.
    • Review newsletters, bulletin boards, publications, etc.
    • Discuss with management procedures in place to obtain and provide information.
    • Gauge stakeholders’ knowledge of availability of information through inquiry of employees, customers, vendors and BOD members. Conduct written survey, if considered necessary.
  • The organization provides opportunities for work placements, internships or similar in-house training opportunities in partnership with local educational institutions or community organizations, when appropriate.
    • Discuss with management procedures to identify and implement partnership opportunities.
    • If partnerships do exist, interview personnel at community organizations to determine effectiveness.


  • 1. The organization donates at least __% of pre-tax profits to charitable organizations (averaged over the previous three fiscal years), of which up to ___ may be contributed in volunteer time and/or donations in-kind. (While it may not be appropriate for not-for-profit organizations to make monetary contributions, they should consider contributing volunteer time.) 
    • Discuss with management the organization’s donation procedures, including the process used to determine how much is given, to whom, when and using what type of donation (i.e. cash, volunteer time, product). Does the organization have any type of employee matching contribution program?
    • Determine the amount donated in the last year through discussion with management and review of accounting records and receipts, as considered necessary.
    • Discuss with management how contribution of volunteer hours is encouraged within the organization and how the organization tracks such hours.

Community Economic Development and Locally-Directed Investment:

  • The organization gives priority to local employment and local suppliers. 
    • Obtain a copy of the purchasing policy and discuss procedures for using local suppliers with procurement personnel.
    • Discuss hiring practices with human resources personnel.
    • Review list of most frequently used vendors to determine the extent to which local suppliers are used.
  • The organization allocates __% of its annual donations budget to local community and economic development projects that address job skills training, job creation and self-sufficiency training.
    • Discuss with management contribution procedures for local community development projects.
    • Review a list of donations to determine the amount that is given to community development projects and vouch to supporting documentation, as considered necessary.

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