More than just numbers!

November 2007

We are keen to raise the profile of co-operatives and employee ownership in Scotland. A key part of this is to demonstrate the added benefits of the co-operative business model.

To do this we have set up a pilot program with Social Audit Network (SAN). The program uses social accounting and audit to measure the 'co-operative difference'. Loch Fyne Oysters, Highland Whole Foods, Scotwest Credit Union, West Whitlawburn Housing Co-operative, Highland Home Care and the Wise Group are taking part in the pilot.

What is social accounting and audit?

Companies usually measure their performance using financial indicators such as profitability, balance sheet worth or share holder value. Social auditing goes beyond this, adding social, economic and environmental benefits (the 'triple bottom line'). This is important for companies whose customers and stakeholders have wider community and social aims.

Paul Farrell of West Whitlawburn Housing Co-operative comments:

'Much of the housing co-operative's work is undervalued and goes largely unrecognised externally, as it is difficult to measure in any conventional currency. We are indebted to CDS for giving us this opportunity to engage in the social accounting and audit process, which we are sure will help us address the issue of measuring what is truly valuable.'

What are the benefits?

Social accounting and audit can provide a framework for business management and on-going monitoring. It gives an annual evaluation of the business' performance and impact - socially, economically and environmentally.

Tracey Bonham of Shared Interest Society Ltd says:

'Our first social accounts were produced in 2005 and we have so far found the following major benefits: it measures our real output; it provides a framework for our reporting; it is comprehensive; it includes an objective 'check' through the audit panel; and it focuses on the vision, mission and values. Snags include finding enough time to do it and - for us - our challenge is to find better ways of demonstrating the social and economical impact on developing world producer groups.'