To be successful in carrying out social responsibility activities over the long run, managers must face the test of monitoring and improving their social responsibility efforts. To monitor and improve their efforts, many managers face the challenge of conducting a useful social audit. A social audit is the process of measuring the present social responsibility activities of an organization to assess its performance in this area. The basic steps in conducting a social audit are monitoring, measuring, and appraising all aspects of an organization’s social responsibility performance. Although some companies that pioneered the concepts of social reporting, such as General Electric, still continue their social audit efforts, other companies have been somewhat slow to follow but are now growing in noticeable number.

The Bank of America published a corporate social audit for 2010 called Opportunity in Motion. The Bank of America’s social audit focuses on company activities in areas like charitable giving, building communities through loans, total paper consumption, and greenhouse gas emissions. The audit focuses on the history of Bank of America activities in each area as well as improvement goals for each area.²⁶

Social audit measurements that gauge organizational progress in reaching social responsibility objectives can be taken in any number of areas. Naturally, the specific areas in which individual companies decide to take such measurements varies according to the specific social responsibility objectives to be met. Starbucks, a roaster, marketer, and retailer of specialty coffee in more than 50 countries, is well known for both setting responsible social goals and taking measurements to determine progress in reaching those goals. The Starbucks Global Responsibility Report: Goals and Progress 2010 gives us an excellent example of areas the company measures in conducting its social audit. A few of these areas are highlighted below:²⁷

1. Environmental Area—Starbucks is committed to minimizing its environmental footprint and inspiring others to do the same. Environmental footprint is a measure of the usage of environmental resources. The greater the amount of resources consumed by an organization, the greater the organization’s footprint. Here social audit measurements could focus on Starbucks closely monitoring recycling and waste procedures. In addition, measurements could focus on charting energy usage to see if energy is being used in a responsible manner. Starbucks could also make sure that company buildings are constructed in a socially responsible fashion. Such buildings, for example, would include dimensions that enable water conservation as well as energy conservation.

2. Community Area—Starbucks is committed to building better neighborhoods, cities, and countries where it operates. In this area, the company focuses on helping to promote community service, creating jobs, and supporting youth activities by issuing grants that enable youth activities in communities. These grants are called Starbucks Youth Action Grants. Social audit measurement in this area could include following up on grants being awarded to see if the awards are impacting society as planned.

3. Responsible Buying Area—Starbucks is committed to furnishing customers with products that are produced by suppliers who are also committed to socially responsible activities. As a result, Starbucks buys from suppliers who furnish safe and humane working conditions for employees. In addition, the company buys from suppliers who protect worker rights and comply with child labor laws. Measurements in this area could involve site visits to suppliers’ locations to see if working conditions are consistent with Starbucks values.

4. Wellness Area—Starbucks is dedicated to supporting policies and efforts to improve the health of individuals in communities in which it operates. The company is also committed to offering food and beverages that support the wellness of customers. As an example, Starbucks offers its customers low-fat apple bran muffins and drinks like the Iced Skinny Latte, which has only 60 calories and zero fat. Social audit measurements in this area could focus on determining if adequate and appropriate policies are being supported as well as finding out if enough health-conscious products are being offered to customers.