Bachelor of General Studies (BGS) Degree Practice Exam

Global social audit standards primarily focus on which of the following?

1. Exclusively economic benefits

2. Internally focused benefits for the firm

3. Exclusively social benefits for stakeholders

4. Internally and externally focused benefits

The correct answer is: Internally and externally focused benefits

Global social audit standards emphasize a comprehensive evaluation of an organization's impact, which includes both internal and external dimensions. This dual focus allows companies to assess how their practices affect not only their internal stakeholders, such as employees and shareholders, but also external stakeholders, including customers, communities, and the environment. By considering both perspectives, social audit standards promote accountability and transparency, encouraging organizations to improve their social responsibility practices and align with broader societal goals. This approach recognizes that the success of a business is increasingly intertwined with its social impact, prompting firms to account for their role in the larger community while ensuring that their internal operations are ethically sound. This holistic perspective aids organizations in building sustainable practices that benefit both their operations and the wider world they operate in.