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INTRODUCTION
Companies are distinguished for their impression on Fenn, 1973). In fact, social audit acknowledges the right of
society as a whole; stakeholders and the environment in all having interest in a corporate to information concerning
particular. For companies long period sustainability with its social impact and ethical performance to furnish
profit making or wealth building, it is analogously cardinal accounts at regular intervals. Entire social audit is a
that they should accept their obligation to be socially climactic methodology of reassignment of power based on
responsible and work for the welfare of the society. As per substantiation and fact. It analyzes, measures and reports
the stewardship principle for having utilized the resources of an organization’s social and ethical performance by
of the society, it is the ethical responsibility of the company scrutinizing its non-financial activities that directly or
to return something well-being to the society and should indirectly impact stakeholders (Ghonkrokta & Lather,
conform various social needs. Recently, corporate 2007). Social audit is crucial for internal examination to
governance and corporate social responsibility (CSR) discern how a particular business concerns the society. A
have welcomed substantial receptivity. Investors prefer to company cannot just survive by creating value addition to
invest in only those companies which accord towards CSR its shareholders and delivering quality products or services
activities. In order to clinch stakeholders attention, to its customers. To create, improve and maintain good
corporate have instituted liberating their CSR reports public relationship and for long-term sustainability, a
pursuing their own code of conduct. So there is a company should mandatorily meet both social and
covetousness to ratify the authenticity of these CSR environmental standards. Good public image is the key
reports and mantra for the success of any company. Social audit
dissect how efficaciously the corporate are honoring their encompasses a wide range of activities and serves
social and ethical responsibilities pragmatically multiple purposes like satisfying the corporate conscience,
(Vicario,2015). improving social programmes, enhancing public relations
and increasing the credibility of the firm (Caroll & Beiler,
1975). Social audit appraises whether corporate
SOCIAL AUDIT CONCEPT desideratum, philosophy, policy, approach, etc. adheres to
the social values and principles. It also divulges that a
Social audit is a commitment to systematic assessment of company has demonstrated its ineffaceable social and
and reporting on some meaningful, definable domain of environmental data congruously. Social audit provides
the company’s activities that have social impact (Bauer & objective, accurate and comprehensive information about
an enterprise’s social performance (Clark C. Abat, 1974).
Social Audit in India: Evidence from Infosys Ltd.
Pradip Kumar Das 65
and social auditing can help a company to have long-term Dimensions of CSR and INFOSYS’S initiatives
sustainability.
1) CSR Committee: According to the guidelines of the
Ministry of Corporate Affairs, Schedule VII of Section 135
OBJECTIVE OF THE STUDY of the Companies Act, 2013, Infosys has constituted a
Board-level CSR Committee to monitor the
The basic objective of the study is to examine how the top implementation of its CSR policy from time to time.
Indian IT sector company has precipitated to the society
and how this has fostered in its long-term sustainability. 2) Healthcare: In collaboration with the National Cancer
Institute (NCI) of the All India Institute of Medical Sciences
(AIIMS), Jhajjar, Haryana, Infosys Foundation has built
MATERIALS AND METHODS shelters for the underprivileged cancer patients and their
families. Infosys CSR team envisages future where quality
This study is descriptive in nature and has used mostly health care services are considered hygiene factor, not
secondary data like books, journals, websites, etc. The luxury. The Foundation along with Sankara Netralaya
study confines to the period of 6 years i.e. from 2015 to provides cash related help to the monetarily backward
2020 as the data beyond this period is not systematically groups of society. This restorative center renders free
accessible. Hence, the conclusion drawn from the study is medicinal strategies and leads getting ready projects in
also limited to this period. Out of 10 sample companies in collection of fields related with ophthalmology. At each
India from different sectors, Infosys, a top IT sector movement, Infosys has offered cash related help, planning
company has been selected for the study for its significant for high bore and sensible social protection to patients who
achievement in genuine CSR activities and others which require it the most. Working together with Swami
help the company attain long-term sustainability. Other Vivekananda Integrated Rural Health Center (SVIRHC),
considerations are that Infosys stood 1st position in the Infosys helps towards elimination of leprosy, tuberculosis
Indian Companies List, 2019 based on its performance in and coordinated free eye exercises to patients. It
four metrics like sales, profits, assets and market furthermore finances the BMCDT Bone Marrow Registry,
(Business World Issue, 2020). Stratified random Bengaluru to develop an overall bone marrow giver vault
technique tool is used for selecting the sample unit. in India.
Besides descriptive study, the researcher also conducted
survey study with the help of issue of questionnaires, etc. 3) Education: Infosys leads in improving education
Discussions and personal interviews with the staffs and standards in the country. Infosys-Avanti Fellows
the concerned authorities of the company were Partnership aids over 1,000 students to get access to
undertaken by the researcher. On-the-spot studies were quality STEM education. Infosys Foundation also aligns
carried out with the help of well-structured questionnaire. with many institutes to gain wider reach and makes
Tentative questionnaires were pre-tested with the staffs engineering students employable. Infosys foundation
and authorities. Although there was found apathy or collaborates with Sri Ramakrishna Vidya Kendra in the
indifference on the part of executives in supplying Bannerghatta Forest area in Bengaluru to provide free
information, the researcher could overcome the same meals to children belonging to BPL families and, hence,
through moral persuasion and intensive pestering. It was promotes education among them. This Foundation has
made clear to them that the information so collected will be joined with Chennai Mathematical Institute (CMI) to
exclusively used for academic purpose and proper secrecy anticipate further examination and research crosswise
will be maintained. over different orders especially in arithmetic and science.
ii)Retirement Benefits: Infosys feeds gratuity, provident Seeking opinion of the marginalized social groups
fund, etc. for employees. on local development issues and their views on
actual performance of elected bodies.
iii)Training and Awareness: Infosys imparts training to Collection of information by an auditor from
employees, suppliers and vendors on human rights, etc. reliable sources.
Adopting performance indicators by the society at
iv)Environmental Contribution: All the development large as yardsticks to judge performance.
centers are ISO14001:2004 certified. Infosys’s existing Regular meetings and follow ups to ensure the
environmental initiatives concentrate on six areas: energy, continuity and effectiveness of audits.
water, biodiversity, waste management, paper and Adopting proper tools to recover swindled money
emissions. Each location is subject to surveillance audit on from the corrupt officials.
rotational basis. Devising substantive procedure instead of
compliance procedure to gauge performance.
v) Recycling: Infosys encourages employees to exert best Defining hierarchy of needs for conducting social
practices like double side printing, smaller fonts, etc. to audit.
minimize utilization of paper to a feasible extent.
Participation of NGOs in conducting audit.
vi)Conservation of Energy: Infosys moderates energy
consumption through efficient equipment though its
CONCLUSION
operations are not energy intensive.
This paper contemplates CSR as a methodology
vii)Waste Management: Each development center has espoused by the selected company to attain its
dedicated waste segregation and processing yard. Solid sustainable journey. CSR activities behave as an
waste management in Infosys is developed on the triple instrument of social audit for self-appraisal of the
R(Reduce, Reuse and Recycle)principles. Disposal of company. CSR and sustainable amelioration always
waste is done as per the legislation applicable to synthesize as the company contemplates to perdure for
hazardous waste management. perpetuity and thereby it feathers the society for future
development. As an Indian company, it staunchly accredits
viii)Product Contribution and Customers Relations: Infosys that a corporate should be responsible to upgrade the
invests in R&D, designs, frameworks, processes and modus vivendi and reform the walk of life of society where
methodologies. Intellectual Property (IP) precipitates it operates. Thusly, Infosys collocates its commitment to
quality, productivity and customer satisfaction. society for both long-term and short-term perspectives.
ix) Rural Reach Programme: (i) relief work for the victims;
(ii) teaching aid and uninterrupted power supply unit for the RESEARCH COMMENT
visually challenged; iii) self-help women groups; iv) vehicle
for supplying food to schools and travelling to rural Social audit is very crucial into the execution process in
areas;(v) construction of foot bridge, etc. Infosys helps India. Infosys’s social audit practice owes its triumph to the
children in orphanage with midday meal programme. It demeanor of tenacious and dedicated leaders at the
also helps underprivileged women through RAPID, an command. Infosys is now extensively contemplated as a
organization in rural areas and provides sewing machines efficacious best approach that has ameliorated social audit
to destitute women to enable their financial security. over the country. Its success rests substantially in the
corroboration of society who demonstrates their
x) Anti-Corruption: Infosys encourages its employees to acknowledgement of the operation. It also lies in the
report on corrupt practices or unethical behavior under the acceptance and immense commitment of the
whistleblower policy. The company has established control administration to support the process. Infosys Foundation
systems to observe local laws on corruption in the behaves towards helping society and effectuating
geographies it functions. sustainable development. It leverages its high tech
background and executes projects which are
contemplated on real-time basis and hence, fabricates
RECOMMENDATIONS enduring impression in the society. In the global context,
profit maximization is the final destination of corporation.
The following recommendations are postulated to make Beyond it, certain laws and regulations restrict the globally
social audit more constructive: reputed corporations to administer their running ethically
Clear disclosure of the intention for conducting and responsibly towards stakeholders. In the fast growing
social audit. business world, corporate are continuously devoting to
Proper identification of stakeholders. society to reap public impression and reputation.
IMPLICATION OF THE STUDY Clark C. Abt. (1974). The social audit for management.
17.
Social audit is now widely accepted as an important Commission of the European Communities. (2002).
mechanism to tackle malpractice and cultivate culpability Communication from the commission concerning
in corporate and government schemes especially with the corporate social responsibility: A business contribution
rapid globalization and the emerging trend towards a free to sustainable development.
economy. This forum reconnoiters important exemplars on www.ec.europa.eu/employment_social/soc-dial/csr/
why and how to conduct social audit as a control device csr2002_en.pdf, accessed on 2006, January 10.
which could be worthwhile for those engrossed in Dwivedi, R. (2010). “Social audit and its methodology”. 2nd
systematizing social audit. This paper draws on Infosys’s Global Leadership Research Conference. Research
experience to establish basic principles that need to be Gate.
contemplated when developing an institutional set-up for Elmousadik, M., & Elkandoussi, F. (2016). Practice of
implementing social audit of this nature. Infosys social social audit in hotel companies: Case study of agadir,
audit is based on stakeholders’ perceptions of its social Morocco. International Journal of Economics and
impact and their evaluation for its ethical performance. Management Engineering ,10 (4), 1289-1293.
Thus, corporate must perceive the necessities and Forbes American Business Magazine. (2020).
proclivities of society and then mold its spirit for their Forbes India Magazine. (2020).
satiety. Academic research on social audit also intensifies Ghonkrokta, S.S., & Lather, A. (2007). Identification of role
the relatedness between social audit and constitutional of social audit by stakeholders as accountability tool in
exertion. good governance. Journal of management Research.
Islam, M.T. (2015). Social audit for raising CSR
performance of banking corporations in Bangladesh.
FURTHER STUDY Jamie Snider, R. P. (2003). Corporate social responsibility
in the 21st century: A view from the world’s most
The study is developed on distinct ITC sector company. successful firms. Journal of Business Ethics , 175-1.
The exploratory study may further be elevated taking a Joshi, R., & Kapoor, S. (2004). Business environment.
great number of companies of other sectors ingrained on Kalyani Publishers.
their CSR strategies to disseminate the conclusion. The Peter Kok, P. T. (2001). A corporate social responsibility
researcher adjudges that the prospect in this sphere audit within a quality management framework. Journal
demands extensive study to clinch at more meaningful of Business Ethics , 285-297.
conclusion. Rahim, M. (2014). Social audit: A mess or means in CSR
assessment? School of Accountancy,19-24.
Sarkar, C. R. (2005). Corporate social responsibility of
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Citation: Pradip Kumar Das (2020). Social Audit in India: Evidence from Infosys Ltd., Journal of Accounting, Auditing and
Taxation, 4(1): 064-070.
Copyright: © 2020 Pradip Kumar Das. This is an open-access article distributed under the terms of the Creative Commons
Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original
author and source are cited.