Social Audit L 6

2. Social Audit L 6 Ing. Jiří Šnajdar 2013

3. Social Audit In terms of public relations, Lindenmann (2005) pointet out: Measurment and evaluation in the public relations field is not a brand new issue or topic that has suddendly emerged just in the past few years. It is an issue and topic that has been widely discussed and carreied out, and grown and evolved over a 60 – year period of time.

4. PR can be eveluated at the individual, programme, organisational or societal level, although programme effectivnes is the most common focus of evaluation activity. It is argued that the ability to evaluate programme effectivness is a key strategic communication planning. Although often portrayed as the final stage in the proces, as outlined above, evaluation contributes to all phases of the PR programmes.

5. Setting objectives The most prevalent approach in to evaluation is Tyler´s objective-based model, which proposes that goals and objectives must be defined and specified as a prerequisite to evaluation. Practitioners should be able to stipulate exactly what they want to achieve with their PR programme.

6. Evaluation models and methods 1.Preparation, Implementation and Impact Model 2.Pyramid Model of PR Research 3. Effectivness Yardstick Model 4. Short Term and Continuing Model Preparation, Implementation and Impact Model

7. Preparation, Implementation and Impact Model Depicts / portray the possibility of evaluating PR at three different levels of preparation, implementation and impact. Evaluation undertaken at the preparation level assesses strategic planning in terms of adequacy of background information gathered to design the programme, as well as the appropriateness and quality of message content and and presentation.

8. At the implementation level, evaluation examines the adequacy of the tactics and efforts applied to the PR programme. During this phase the number of PR materials produced and distributed is documented, opportunities for exposure are determied from the number of messages placed in the media and the number of people who received and attended to programme messages are measured.

9. The impact involves assessment of programme where the extent to which programme goals and objectives have been achieved is investigated. The changes in targets knowledge, opinion, attitude and behaviour become the focus of evaluation efforts.

10. Pyramid Model of PR research The Pyramid Model differs from the other models in the fact that alongside each stage it proposes a menue of appropriate evaluation methodologies. In particular it highlights a number of no cost or low cost avenues including secondary data. This is an important point for thr PR specialists to note as cost is frequently advanced as the reason for not undertaking the evaluation.

11. Effectivness Yardstick Model The Effectivness Yardstick Model that established three levels for measuring PR. This model propose that effective PR measurment and evaluation is a two-step proces that involved first setting specific and defined PR goals and objectives and second, determining levels of measurment. At the basic level, PR outputs are measured. These centre on media relations efforts involving media placements, impresions and reach.

12. Effectivness Yardstick Model cont… At the level two, the model introduces an additional stage that focuses on assessing PR, that is whether target audiences recieved, attended to, understood and retained the PR messages. Finally, PR outcomes are evaluated at the level three phase, which includes measures on opinion, atitude and behaviour change.

13. Short Term and Continuing Model This model evaluates that PR actions operated according to two broad structures of short-term media relations campaigns and longer-term programmes that utilised a variety of strategies and tactics to create effects among target groups. Two different models are needed to judge two very different scenarios.

14. PR evaluation in practice A number of empirical research studies have investigated the nature and extent of PR evolution practice in countries around the world. Results show remarkable consistency across these geographically diverse regions. Practitioners seem to support the idea of PR evaluation, recognising its professional benefits as well as its importance to the credibility of PR. The PR is difficult to measure in precise terms.

15. Barriers to evaluation practice Universally the most common barriers have centered on limited resources. The research is sugesting that PR research is conducted by PR trained personnel rather than by research specialists. The role of senior management in influencing evaluation aktivity has also been raised. Practitioners admited that they were not proactive enough regarding evaluation because management did not request it.

16. Barriers to evaluation practice cont… The tools of evaluation are concern for practitioners that they were hasitant about available measures because of perceived problems and called for the development of a quick and easily administered measurment instrument.

17. Industry response PR professionals associations and related organisations aroud the world have developer a range of iniciatives to support and encourage the development of PR eveluation, with varying degrees of success.

18. The 7 Barcelona Principles (2010) Importance of goal setting and measurment Measurring the effect on outcomes is preffered to measuring outputs The effects on business results can and should be measured where possible Media measurment requires quantity and quality

19. The 7 Barcelona Principles (2010) cont… Advertising Value Equivalency, a marketing metric for PR measurement are not value of PR Social media can and shloud be measured Transparency and replicability are paramount to sound measurment

20. The Media evaluation debate PR is commonly evaluated at the output level using content analysis of media coverage. This can range from basic to sophisticated, be quantitative or qualitative and may be perfomed manuály or via computor software systems. The simplest formo f content analysis is the counting of press clippings, radio and TV segments that mention an organisation or its products and services or those of its competitors.

21. The Media evaluation debate cont… Articals that contain other key words or issues that an organisation identifies as relevant can also be gathered. Media evaluation can be source of valuable inteligence not only in terms of an organisation´s own coverage, but also competitors, as well as societal issues and trends.

22. Wether key corporate messages are being reported in media Which journalists/publications are providing favourble coverage The source of press coverage achieved Comparing an organisation´s coverage to its competitors Identifying trends in media coverage Detecting emerging issues that may affect an organisation

23. Online evaluation The EMC European Communication Monitor (2010) revealed that media relations on the web, social media and online communication have been some of largest growth areas of PR across Europe in the last three years. As with all aspects of PR, there is need to monitor, measure and evaluate these types of communication.

24. Definition of 'Social Audit‚ 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. Social audits are optional - companies can choose whether to perform them and whether to release the results publicly or only use them internally.

25. In the era of corporate social responsibility, where corporations are often expected not just to deliver value to consumers and shareholders but also to meet environmental and social standards deemed desirable by some vocal members of the general public, social audits can help companies create, improve and maintain a positive public relations image. Good public relations is key because the way a company is perceived will usually have an impact on its bottom line.

26. The process of evaluating a firm's various operating procedures, code of conduct, and other factors to determine its effect on a society. The goal is to identify what, if any, actions of the firm have impacted the society in some way. A social audit may be initiated by a firm that is seeking to improve its cohesiveness or improve its image within the society. If the results are positive, they may be released to the public.

27. Social accounting (also known as social accounting and auditing, social and environmental accounting, corporate social reporting, corporate social responsibility reporting, non-financial reporting or accounting) is the process of communicating the social and environmental effects of organizations' economic actions to particular interest groups within society and to society at large.

28. Social accounting is commonly used in the context of business, or corporate social responsibility (CSR), although any organisation, including, charities, and government agencies may engage in social accounting.

29. Social accounting emphasises the notion of corporate accountability. D. Crowther defines social accounting in this sense as "an approach to reporting a firm’s activities which stresses the need for the identification of socially relevant behaviour, the determination of those to whom the company is accountable for its social performance and the development of appropriate measures and reporting techniques."

30. Social accounting is often used as an umbrella term to describe a broad field of research and practice. The use of more narrow terms to express a specific interest is thus not uncommon. Environmental accounting may e.g. specifically refer to the research or practice of accounting for an organisation's impact on the natural environment. Sustainability accounting is often used to express the measuring and the quantitative analysis of social and economic sustainability.

31. It points to the fact that companies influence their external environment ( some times positively and many a times negatively) through their actions and should therefore account for these effects as part of their standard accounting practices. Social accounting is in this sense closely related to the economic concept of externality.

32. The purpose of social accounting can be approached from two different angles, namely for management control purposes or accountability purposes. Social accounting for accountability purposes is designed to support and facilitate the pursuit of society's objectives. These objectives can be manifold but can typically be described in terms of social and environmental desirability and sustainability

33. Society is seen to profit from implementing a social and environmental approach to accounting in a number of ways: Honoring stakeholders' rights of information Balancing corporate power with corporate responsibility Increasing transparency of corporate activity Identifying social and environmental costs of economic success

34. Management control Social accounting for the purpose of management control is designed to support and facilitate the achievement of an organization's own objectives. Because social accounting is concerned with substantial self-reporting on a systemic level, individual reports are often referred to as social audits. Organizations are seen to benefit from implementing social accounting practices in a number of ways:

35. Management control cont… Increased information for decision-making More accurate product or service costing Enhanced image management and Public Relations Identification of social responsibilities Identification of market development opportunities Maintaining legitimacy

36. Scope In social accounting the focus tends to be on larger organisations such as multinational corporations (MNCs), and their visible, external accounts rather than informally produced accounts or accounts for internal use. The need for formality in making MNCs accountability is given by the spatial, financial and cultural distance of these organisations to those who are affecting and affected by it.

37. Unlike in financial accounting, the matter of interest is by definition less clear-cut in social accounting, this is due to an aspired all-encompassing approach to corporate activity. It is generally agreed that social accounting will cover an organisation's relationship with the natural environment, its employees, and ethical issues concentrating upon consumers and products, as well as local and international communities. Other issues include corporate action on questions of ethnicity and gender.

38. Companies and other organisations may publish annual corporate responsibility reports, in print or online. The reporting format can also include summary or overview documents for certain stakeholders, a corporate responsibility or sustainability section on its corporate website, or integrate social accounting into its annual report and accounts.

39. THE SOCIAL AUDIT What is it? The social audit is a business statement published every year to present a set of information about the social projects, benefits and actions addressed to employees, investors, market analysts, shareholders and the community at large. It also functions as a strategic instrument to evaluate the practice of corporate social responsibility.

40. Through its social audit the company shows what it does on behalf of its professional staff, their families, collaborators and the community at large. Transparency is given to the activities developed to improve quality of life. Its main function is to make public the company's social responsibility, thereby strengthening the links between company, society and environment.

41. Why publishing it ? • Because it's ethical. Being fair, good and responsible is a reason in itself. • Because it adds value. The social audit gives the company a reference that is being more and more appreciated by investors and consumers and throughout the world.

42. Why publishing it ? • Because it reduces the risks. In a globalized world where information takes only some minutes to be spread all over international markets, ethical and transparent conduct has to be an integral part of any organization's strategy. • Because it's an instrument of modern management. The social audit is a valuable tool for the company to administrate, measure and publicize the practice of social responsibility in its undertakings.

43. Why publishing it ? • Because it's an instrument of evaluation. Market analysts, investors and financing agencies such as BNDES, BID and IFC now include the social audit in the list of documents required to assess a company's risks and projections. • Because it's innovative and transforming. Publishing an annual social audit means changing the old approach - indifferent to the satisfaction and welfare of employees and clients - to a modern view where the company's objectives include the concern of social and environmental responsibility.

44. Who benefits? The social audit benefits all groups involved with the company’s activities. It provides useful information for directors to make decisions regarding the social programs the company sponsors. Preparing the social audit stimulates the employees to take part in choosing social actions and projects, thus improving internal communication and integration between managers and staff.

45. Who benefits? Suppliers and investors learn how the company faces its responsibilities with regard to human resources and the environment, which is a good indicator of how the company is run. The social audit shows consumers its philosophy and the quality of the product or service that is provided, pointing to the way the company chooses to make itself known. The State also benefits through the identification and formulation of social policies.