1. 14. Social-ethical audit B 14 / 1 BUSINESS ECONOMICS 5 / 6
Copyright Mark Van Couwenberghe,

2. 14.0 OVERVIEW B 14 / 2 14.1 AUDIT: WHAT? page B 14 / 3
14.2 SOCIAL-ETHICAL AUDIT: WHY? page B 14 / 4
14.3 SOCIAL-ETHICAL AUDIT: WHAT? page B 14 / 5
14.4 SOCIAL-ETHICAL AUDIT: EXAMPLE page B 14 / 6
14.5 EXERCISES T page B 14 / 10
14.6 VOCABULARY page B 14 / 12
Copyright Mark Van Couwenberghe,

3. B 14 / 3
14.1 AUDIT: WHAT?
An audit is a systematic way to control activities and procedures, in order to enable the company to
improve its operations
adapt more quickly to changes
There are 2 types of audit:
internal (company performs audit)
external (audit company performs audit)
Audits should have 2 characteristics:
objective
independent
Audits can be performed in different areas: financial audit, product audit, supplier audit, …
Copyright Mark Van Couwenberghe,

4. 14.2 SOCIAL-ETHICAL AUDIT: WHY?
B 14 / 4
14.2 SOCIAL-ETHICAL AUDIT: WHY?
VALUE
CHARTER
What?
Key-queston:
Does the company live-up to its value charter?
SOCIAL-ETHICAL
AUDIT
ANSWERS
Copyright Mark Van Couwenberghe,

5. 14.3 SOCIAL-ETHICAL AUDIT: WHAT?
B 14 / 5
14.3 SOCIAL-ETHICAL AUDIT: WHAT?
A social-ethical audit is an audit that enables the company to evaluate if the value charter is implemented in reality
The audit analyzes the social impact of a company
The results of the audit will be used to adapt the company’s targets, strategies and operations in close consultation with all stakeholders
Explain “stakeholders”
Copyright Mark Van Couwenberghe,

6. 14.4 SOCIAL-ETHICAL AUDIT: EXAMPLE
B 14 / 6
14.4 SOCIAL-ETHICAL AUDIT: EXAMPLE
Every social-ethical audit will be very “specific” (tailormade to the company), but the following 4 areas keep coming back as focus points:
Internal social policy
Relation between employer and employees
Quality and content of jobs
Working conditions …
Environmental policy
Sustainability (example: waste management, renewable energy, …)
External social policy
Ethical-social choices (example: human rights, …)
Ethical-economic policy
Compliance with rules (example: taxes, …)
Copyright Mark Van Couwenberghe,

7. B 14 / 7 Difference between financial audit and social-ethical audit:
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8. B 14 / 8
Social Venture Network is a website that wants to inspire entrepreneurs to practice “social business” and contribute to a more “social economy”; the website describes the different focus areas for a company per stakeholder
Stakeholders:
Employees:
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9. B 14 / 9 Business partners: Customers: Society:
Environmental organizations:
International partners:
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10. B 14 / 10
14.5 EXERCISES
Read and analyze the following problem situations in the social-ethical area and discuss measures to counter each problem:
Estimates from the Department of Economics show that about 17% of all students is active in the labor market without an offical contract
A report from the European Commission shows that, although the situation is improving, women are still limited in their careers as a result of the “glass ceiling”
Copyright Mark Van
Couwenberghe,

11. B 14 / 11
Weapon manufacturer FN signed an important contract with the US Army to produce a new weapon that neutralizes the enemy
Two businessmen are being prosecuted for not paying social security contributions and using the money to start-up new companies
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Couwenberghe,

12. B 14 / 12
14.6 VOCABULARY EN NL
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13. B 14 / 13 EN NL
Copyright Mark Van Couwenberghe,

14. B 14 / 14 EN NL
Copyright Mark Van Couwenberghe,