Question

Distinguish between management and social audit

Answer 1

A management audit is an analysis and assessment of competencies and capabilities of a company's management to carry out corporate objectives. The purpose of a management audit is not to appraise individual executive performance, but to evaluate the management team in its effectiveness to work in the interests of shareholders, maintain good relations with employees and uphold reputational standards.A social audit is a formal review of a company's endeavors in social responsibility. A social audit looks at factors such as a company's record of charitable giving, volunteer activity, energy use, transparency, work environment, and worker pay and benefits, to evaluate what kind of social and environmental impact a company is having in the locations where it operates.