This paper sets out to discuss the importance of social and environmental auditing in business. A social auditing refers to a formal review of the efforts being made by a company in social responsibility. It looks at the impact of business decisions on society. Environmental auditing on the other hand refers to formal reviews of a companys activities and their impact on the environment. Although social and environmental auditing can pose some challenges for business, it is an important way of regulating business activities and should therefore be compulsory in all business enterprises (Murray et al., 2006).
