Social Audit

 Impact Assessment Study by HR LAB.  I have demonstrated earlier,  the ESG rating, by agency like  CRISIL needs, more  good practice of inducting the third party "Social Audit" before publishing the ESG rating, when there is past history of ESG practice violation.   Any poor or exaggerated ESG rating shall alter the share market price. Now a days this is the perception of the investors that strong ESG compliance of company, is  good indicator of safe investment and excellent return. This is also the target of the Government of India to achieve the Sustainable Development Goal ( SDG Goal ). This SDG Goal mandate, mostly is achieved through  the regulatory authority SEBI.  The SEBI has mandatorily implemented the ESG evaluation of various companies. This rating evaluation now is not matured. The rating agency like the  CRISIL so far has been rating the ESG parameter of the various companies.    CRISIL mostly captures ES...

  . When some complain is there on the ESG Practice,  then continuous third party Social Audit is required from the "Social Auditor". This is mandatory to validate the  ESG practice whether improved or not ? This is good practice.  Rating validation through any public domain  information, mostly the voluntary BRSR document,  is bad practice, when past complain is there. In the ESG Rating, Social Audit, is necessary for accounting the business risks including the  impacts to all stakeholders, global citizens and covering mostly the human resource capital working in the company. This is basically the audit of the dominated HR function. This "Social Audit" needs, trained human resource expert to scan the social issues and welfare aspect on the human resource practices.     Since, ESG Audit, is mostly audit of the "non financial practices". Hence, the "ESG Audit", which is gaining shape compulsorily in the SEBI listed entity, needs honest ef...

CSR Impact Assessment  & Audit On  CSR Planning & Implementation  By HR LAB.  Nayara Energy Limited has jetty location  in Ocean, where this company unloads crude imported petroleum. Since, the company is using Ocean,  hence, it has "Social Responsibility" to protect the "Ocean Environment"  including the submerged heritage sites here. The crude petroleum products are transported to Vadinar Refinery, situated near the Ocean. In Nayara Energy Limited's Case Study two photographs have been given as audit evidence   of large scale oil spill . The oil spill  has damaged the "Ocean Environment". The CSR is needed towards the "Ocean Environment Protection". This is missing here! The CSR Projects were selected without conducting "CSR Need Analysis". This is skill gap of the Directors of the Nayara Energy Limited.  Most of the CSR Committee do not know where the CSR Funds needed to be used. There is absolute "Lack of Skill...

The boy with "Tiger's Heart", only conducts regular "Social Impact Assessment Audit" or meet "CSR Compliance". This is reality. Weak, confused CSR Head, avoids "Social Impact Assessment Audit" as well as the compliance. They wait for the limit to cross. This is poor culture. Such CSR Head, fails to understand the difference between the "National Vision" Vs. the "Individual Vision" and the difference between the "voluntary social audit" and the "compulsory social audit." Regular "Social Impact Assessment Audit" is a good sustainable practice.  Good Companies follow regularly  "Lean Management" with "5S Audit and Social Audit". They demonstrate here, social oriented responsibility. They do not wait for the threshold to cross, as seen in the Indian and small Chinese companies.  The  good practice of regular conduct of Social Audit, is a wisdom, which only comes from the compan...

* Birendra K Jha Practitioner "Social Impact Assessment Audit"; "Social Audit"; "CSR Audit";  Qualified Member of the Institute of Social Auditors of India; Director, HR Lab   The SEBI Board in its meeting held on September 28, 2021 had given specific note to the Ministry of Corporate Affairs (“MCA”), Ministry of Finance (“MoF”) and Ministry of Home Affairs (“MHA”) to change Company Law 2013 and FERA Provision on the accountability check by the Social Auditor. This has been done to ensure clean route in the social projects and the CSR fund utilization. The SEBI ICDR and SEBI AIF Regulations, have  already been amended. This amendment, with immediate effect has changed the SEBI Listed entities to conduct CSR's Social Impact Assessment Audit, as per the new Law.   Now, only Qualified Social Auditor can conduct the Social Impact Assessment Audit. The Ministry of Corporate Affairs is also changing the provision with regard to the Corporate Social Responsib...

* Birendra K Jha Practitioner "Social Impact Assessment Audit"; "Social Audit"; "CSR Audit";  Qualified Member of the Institute of Social Auditors of India; Director, HR Lab The SEBI (LODR) Regulations 2015, Amendment 2023, has moved one step further and defined clearly the "Social Impact Assessment" Audit and the "Social Auditor" and clearly given the Qualification norms of the "Social Auditor". This definition is absent in the Company Law 2013 so far. This law is immediately applicable in all the SEBI listed companies. The CSR compliance for the SEBI listed Companies, shall have to go with the new SEBI Law.  The important part of the SEBI Law change this year is not only the clear definition and direction on the   "Social Impact Assessment" Audit and "Social Auditor", but has also added another wing on the social economy. This is  the creation of the Social Stock Exchange. Now fund scarcity NGOs, who begs...