Coverage
- Applies to all registered cooperatives of any type or category.
- All cooperatives are mandated to submit an annual Social Audit Report.
Definition and Scope of Social Audit
- A process by which a cooperative evaluates its social impact and ethical performance against its mission, vision, goals, and social responsibility code.
- Measures contribution to the economic and social upliftment of members and the community.
- Compares actual performance with declared objectives, focusing on both member benefits and community impact.
- Acts as a control mechanism to account for social performance and assess community impact through use of the community development fund.
Objectives and Uses of Social Audit
- Validates adherence to the seventh cooperative principle - Concern for Community.
- Determines if the cooperative supports sustainable community development through member-approved policies.
- Evaluates both economic and social dimensions of the cooperative as a value-based, participative, user and community-oriented, and non-profit service organization.
- A systematic review of attitudes, values, behaviors, internal interactions, and implemented policies, programs, and activities.
Social Audit Report
- Cooperatives must use the Social Audit Tool approved by the Board of Administrators (Resolution No. 58 s-2013) as the basis for their annual socio-civic activity report.
- The report must be typewritten or printed in a form prescribed by the CDA.
- Certification of the report’s truthfulness is required from the Chairperson and General Manager.
- Final approval must be made by the Chairperson.
Preparation and Submission Procedures
- Social Audit Reports must be submitted to the CDA within 120 days after the calendar year ends.
- Late submissions impose a penalty of Php 100 per day on the accountable officers, per Rule 8, Section 7 of the Implementing Rules of RA 9520.
- Failure to submit may lead to procedural cancellation of the cooperative or compulsory merger/consolidation with another cooperative in the same area.
Transitory Provision
- Initial Social Audit Reports may be conducted by the cooperative’s Internal Auditor or Audit Committee.
- Subsequent audits must be performed by an Independent Social Auditor accredited by the CDA.
Effectivity
- The guidelines became effective fifteen (15) days after publication with the Office of the National Administrative Register (ONAR).