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Social Audit
L6
Ing. Jiří Šnajdar
2013
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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
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.
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.
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
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.
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.
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.
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.
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.
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.
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."
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.
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.
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
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
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:
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.