This paper highlights a range of IGP (Innovation and Good Practice Grant funded) projects concerned with gaining a better understanding of the social performance and effect of housing associations on the individuals and communities that they serve a process commonly referred to as social auditing. The projects are listed at the end of the paper.
The social performance of housing associations refers to the effect they have on the lives of their residents and the quality of life in the communities in which they work, which can be significant. Housing associations provide services and develop new homes. They employ people and buy goods and services. They bring money into areas and can help build community capacities, networks and skills. In doing these things, housing associations work with a range of stakeholders, notably their residents, staff, local authorities, suppliers, private funders and the Housing Corporation.

Many organisations now recognise that by focusing on what matters to their closest stakeholders, and by measuring more than just their financial performance, they can better predict their own future success. Businesses focusing on the triple themes of economic, social and environmental performance appear more likely to maintain and develop a sustainable and successful business in the future.

The Government is currently consulting on a proposal that public and very large private companies should be legally obliged to publish a broad operating and financial review relating to their employees, customers, suppliers and the wider community. Those responsible for directing and managing businesses may be required to take account of stakeholders' interests. Housing associations have already been doing this, but need to be more systematic and improve the way they do it. Social audit is an essential tool in achieving and demonstrating this.

Developed by the New Economics Foundation and Tradecraft Exchange, social auditing seeks to support, guide and define a process by which an organisation identifies measures, assesses and reports on its social performance.

Alongside the work of the New Economics Foundation, the Institute of Social and Ethical Accountability (ISEA) has developed a social accounting process standard (AA1000). The principles of this standard are set out in table 1.