A social audit checks an organisation's work against what it promised to the people it affects, and it checks it with those people, not only with records. In India the term has three common uses: the gram sabha audit of rural employment schemes (MGNREGA, now replaced by the VB-G RAM G Act, 2025), the review of a company's CSR work, and a supplier social compliance audit. This guide covers all three, then gives one process and one checklist you can reuse.
Last reviewed: 17 October 2026. Facts checked. We searched for MGNREGA social audit rules and opened a Drishti IAS explainer and a ClearIAS note on the 2025 rural employment law, and searched for the VB-G RAM G Act's assent, commencement and social audit provisions (news and exam-prep sources, including DD News; we did not read the Act). We also searched for CSR impact assessment rules. We could not open nrega.nic.in (the connection failed), and we did not open the text of the Act, the 2011 Audit of Schemes Rules or the MCA CSR rules. Two Vikaspedia pages loaded empty. We did not search supplier audit standards, so that section is general practice. Check anything legal against the official text.
What "social audit" means
A financial audit asks whether the numbers are right. A social audit asks whether the money reached the people it was meant for, and whether they agree. Evidence comes from records, but also from site visits and from the beneficiaries themselves.
That is why the same words cover very different jobs. Pick your meaning first.
| Type | Who audits | Who is audited | What it tests |
|---|---|---|---|
| Rural scheme social audit (MGNREGA, now VB-G RAM G) | Gram sabha, supported by a state Social Audit Unit | Local implementing agencies | Whether works were done, wages paid and records are true |
| CSR social audit or impact assessment | Company, internal audit or an independent agency | The company and its CSR partners | Whether CSR money was spent as planned and made a difference |
| Supplier social compliance audit | Buyer or a third-party auditor | The factory or supplier | Labour conditions, wages, working hours, child labour and safety |
This article does not cover a "social audit" in the sense of an ESG report. For that, see BRSR and ESG internal audit.
Type 1: Rural scheme social audit (MGNREGA, now VB-G RAM G)
This is the meaning behind most searches in India. It has a recent change you need to know about.
The law changed in 2025. The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, usually shortened to VB-G RAM G, received the President's assent on 21 December 2025 and replaces the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA). Most reports, including DD News, say it took effect on 1 July 2026, with MGNREGA and its rules repealed from that date. Sources agree that social audits continue and are described as strengthened, but they describe the frequency differently, so we do not state one. Read the Act and the current rules before you rely on any detail.
How the audit has worked. Under MGNREGA, section 17 gave the gram sabha the job of monitoring works, and the Audit of Schemes Rules, 2011 set out how social audits were done and the role of the state Social Audit Unit (SAU). Secondary sources describe the practice as:
- Each state has a Social Audit Unit that works independently of the agencies running the scheme.
- Auditors compare records such as muster rolls and job cards with what they find on the ground.
- Findings are read out in an open gram sabha meeting, and the implementing agency must respond.
Whether the 2011 Rules and the SAU structure carry over unchanged to the new Act is something we could not confirm from the Act. Check the current text.
Type 2: CSR social audit
Companies covered by Section 135 of the Companies Act, 2013 spend on CSR, and the board must be able to show where the money went. A CSR social audit goes beyond the utilisation certificate. It asks whether the project reached the planned beneficiaries and whether anything changed for them.
Secondary sources say the CSR rules require an independent impact assessment for companies above a stated CSR obligation, for projects above a stated size. Because sources disagree on dates, check the current MCA rules. Our full guide is CSR audit and compliance under Schedule VII.
Type 3: Supplier social compliance audit
Buyers, especially exporters' customers, send auditors to a factory to check labour conditions. Typical areas are wages and hours, age checks, worker safety, freedom to leave and grievance channels. A supplier may also ask for an audit of itself before a buyer does. The tests here look much like a safety audit plus a payroll review. See our payroll internal audit checklist.
The process, step by step
The steps are the same for all three types.
- Define the scope. Name the scheme, project or site, the period and the promises being tested.
- Collect the records. Get muster rolls, payment vouchers, beneficiary lists, contracts or attendance data.
- Plan the sample. Choose sites and people so that weak areas are covered, not only convenient ones.
- Verify in the field. Visit the work, meet beneficiaries and workers, and ask them directly. Do not only read papers.
- Compare. Match what people say against what the records say. Differences are the findings.
- Report in public or to the board. Rural audits are read out in the gram sabha. CSR and supplier findings go to the board or the buyer.
- Follow up. Track each finding to closure. An audit with no action log is only a report.
Checklist
- Written scope, period and beneficiary list agreed before fieldwork
- Records obtained for the full period, not a selected window
- Sample covers different locations and groups
- At least some beneficiaries or workers met without the implementer present
- Payments traced to the person who should have received them
- Findings written in plain language and supported by evidence
- Responses recorded from the audited party
- Action owner and date for each finding
- Protection for people who speak up, such as a working complaints channel (see fraud risk assessment)
Frequently Asked Questions
What is the meaning of social audit?
It is a review of whether an organisation delivered what it promised to the people affected, using their feedback alongside records. The method depends on whether it is a rural scheme, a CSR project or a supplier.
Is social audit mandatory in India?
For rural employment schemes, the law gives the gram sabha a monitoring role, and the rules set out social audits. For CSR and suppliers, requirements differ. Check the current rules for your case.
Who conducts a social audit?
For the rural employment scheme it is the gram sabha, supported by a state Social Audit Unit, as under MGNREGA; check how the new Act sets this out. For CSR it can be internal audit or an independent agency. For suppliers it is the buyer or a third party.
How is a social audit different from a financial audit?
A financial audit tests whether accounts are fairly stated. A social audit tests whether outcomes reached the right people, and it relies on direct feedback.
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