Social Audit Services Market - Forecast(2024 - 2030)

Social Audit Services Market Overview

The Social Audit Services market size is forecast to reach $27.3 billion by 2026, growing at a CAGR of 17.1% from 2021 to 20Social Audit Services has emerged as a major initiative implemented by varied end-use sectors towards monitoring or tracking their organisational growth through social impact assessment ensuring identification of vendor positioning grid, business positioning grid and related models. In addition, growing social awareness among industries, shift towards environment friendly alternatives as well as focus on getting social recognized certifications to raise business growth have been attributing the market growth. Growing investments in corporate social responsibility (CSR) programs, rising concerns over climatic variations due to varied industrial operations along with increasing investment in improving workplace or occupational safety standards are set to drive the market growth of social audit services in the long run.

Social Audit Services Market Report Coverage

The report: “Social Audit Services Industry Outlook – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Social Audit Services industry.

By  Audit Type: Social & Quality Management, Occupational Health & Fire Safety, Ethical Trading, Social Impact Assessment, Corporate Social Responsibility, Climatic Change Assessment, Anti-corruption audits, Others
By End Users: Food & Beverage, Oil & Gas, Apparels & Footwear industry, Industrial Machinery, Banking, Financial Services & Insurance (BFSI), Retail, Telecom, Power Generation, Mining, Media & Entertainment, Healthcare & Pharmaceuticals, Others
By Geography: North America (U.S, Canada, Mexico), Europe (Germany, U.K, France, Italy, Spain, Others), APAC (China, Japan, South Korea, India, Australia, Others), South America (Brazil, Argentina, Others), RoW (Middle East, Africa)

Key Takeaways

• Healthcare & Pharmaceutical industry is analyzed to grow with the highest CAGR during 2021-2026 owing to illicit trade of pharma products, growing need for quality management services and others.
• APAC Social Audit Services market held the largest share in 2020, due to rising concerns related to industrial safety and an increase in counterfeit or illicit trading activities.
• Increasing demand towards improving occupational workplace safety standards along with growing concerns over climatic change owing to diverse industrial work processes is analyzed to drive the market growth of social audit services during the forecast period 2021-2026.

Global Social Audit Services Market Value Share, By Region, 2020 (%)

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Social Audit Services Market Segment Analysis- By Audit Type

Based on audit type, Corporate Social Responsibility (CSR) segment is analyzed to grow with the highest CAGR of 9.2% in the global social audit services market during the forecast period 2021-2026. Factors including governmental mandates towards supporting implementation of CSR programs across industries, growing shift towards extending social as well as environmental responsibilities under business goals and so on attribute to the market growth. Implementation of CSR services have gained wide popularity across major industry verticals including power plants, oil & gas, textiles, and others which contribute towards generation of massive amounts of wastes, can adversely impact the environment. The growing market competition and rising focus on getting certified recognition based on social performance of the companies have been also driving the demand for CSR based auditing services. Investment in corporate social responsibility initiatives overtime to raise brand awareness, enhancing public relations, increased business profits, gain customer base, and so on can further fuel the market growth. In August 2021, Northern Coal Fields Limited (NCL) had revealed its plan of investing Rs. 132.75 Crore towards corporate social responsibility activities in the current financial year. Such initiatives from government owned mining and refining companies is set to drive the market forward in the coming time.

Social Audit Services Market Segment Analysis- By End Users

Healthcare & Pharmaceutical sector is analyzed to witness the fastest growth with the CAGR of 7.5% in the global social auditing services market during 2021-2026. Illicit trade of various pharma products, rise in supply chain disruptions as well as need for quality management services attribute to the market growth of social auditing across healthcare industry. Conducting regulatory practices including assessment of drug manufacturing sites, compliance for specific ingredients to be used for medicine production, offering quality care to patients within hospitals and so on have been also driving the need towards varied social audit programs including CSR, anti-corruption audits, and quality management with others. With the surge of COVID-19 pandemic, incidents related to worldwide trade of fake medicines along with COVID vaccines counterfeiting have been raising significantly, irrespective of stringent control from government authorities including GAVI, UNICEF, CEPI and related organizations. This in turn, can further fuel the need for stringent control by conducting social audit services, impacting its market growth. In July 2021, thousands of people had fallen prey to a scam selling fake coronavirus vaccines in India, with doctors as well as medical workers getting arrested due to their involvement, as per CNN reports. This report revealed approximately around 12 fake vaccination drives were held near the financial hub of Mumbai, India with claims of providing a legitimate AstraZeneca dose under paid model. Moreover, prediction regarding the rate of production as well as illegal trade of counterfeit medicines is intended to surge by the coming time, owing to incapability of meeting required vaccine demands across the countries, which will eventually create a positive impact on the market growth of social audit services.

Social Audit Services Market Segment Analysis- By Geography

APAC region had dominated the global social audit services market with a share of 35% in 2020, and is anticipated to have a significant growth during the forecast period 2021-2026. Growing concerns related to industrial safety, rising rate of counterfeit or illicit trades as well as need for monitoring social responsibility programs initiated by the industries have attributed towards the market growth. In addition, governmental initiatives or mandates regarding quality control or inspection of pharmaceutical drugs, food & beverage items, and others along with an increase in industrial waste and pollution hampering the environment also drive the demand for investing highly on social audit service models within the region. In July 2021, the Ministry of Social Justice and Empowerment announced the formulation of a scheme named Information-Monitoring, Evaluation and Social Audit (I-MESA) in FY 2021-22. Under this, social audits will need to be conducted for all the schemes of the Department starting from FY 2021-22, through Social Audit Units (SAU) of the States as well as National Institute for Rural Development and Panchayati Raj. Such factors are set to boost the market growth towards social audit services in the coming time

Social Audit Services Market Drivers

Growing concern regarding climatic changes owing to various industrial operations positively impact the need for social audit services

Growing concern regarding climatic changes owing to various industrial operations can be considered as a major driver boosting the market growth of social audit services. Since various industrial operations involve creation of hazardous and harmful substances as waste product, use of non-renewable source of energy, disposal of harmful wastes in water bodies, and so on attribute towards the need for climatic control or assessment audits for the companies. Pollution of air from harmful substances can also lead to an adverse impact on the climate causing acid rain, health hazards and many others, which significantly aids the market growth for climate monitoring initiatives. In order to curb the concerns regarding climatic variations, various firms have already started investing on energy efficient alternatives, following proper code of conduct while waste disposals, treatment of gases before exposing it to the atmosphere and many others to improve environmental sustainability within the industries. In September 2021, IIGCC and TPI in collaboration with some of the leading oil & gas companies including Shell, BP, TotalEnergies, Repsol and ENI had revealed about the publication of a new standard towards mandating the need for absolute as well as intensity emission reduction targets, covering material emissions, alongside alignment of capital expenditure, production plans with a net zero target, as a part of meeting climate change concerns. Such factors are set to boost the market forward for the social audit services in the long run.

Increasing demand for improving occupational workplace safety standard drives the market forward

Increasing demand for improving occupational workplace safety standard act as a major factor driving the growth of social audit services market. Factors including growing negligence of workplace safety across industries to save costs along with rise in fire or explosion incidents across varied industries like power plants, oil 7 gas, food & beverage and so on have been attributing to the need for improving occupational workplace safety standards. Stringent government regulations regarding occupational and labor safety within hazardous or critical industrial environments along with an increase in fine or penalties for the firms from government while encountering industrial fatality caused due to safety negligence or avoidance will also drive the market growth of social audit services. In August 2019, as per the charge sheet for United Plantations, the company failed to ensure safety, health and welfare at the workplace at the plantation in Pantai Remis, resulting in an accident. This resulted the company to be fined over negligence on workplace safety as according the government, following proper standard operating safety measures could have potentially helped in preventing the incident. In April 2021, countries need to drive focus on incorporating resilient occupational safety and health systems in order to minimize the workplace risks in the event of future health emergencies, as per the International Labour Organization. Such factors are bound to propel the need for social audit services to improve occupational safety standards in the long run.

Social Audit Services Market Challenges

Lack of transparency methodology and non-compliance of social audits from firms hinders the market growth

Lack of transparency methodology and non-compliance of social audits from firms can be considered as a major challenge restraining the market growth of social audit services. Since these auditing services can either be conducted by the organization itself or by third parties, the methodology for conducting audits based on parameters can differ accordingly. This in turn, creates the lack of an efficient and standard audit service model which can be used by both third parties and individual firms to conduct social and corporate assessment with ease and flexibility. Additionally, various firms or countries refusal towards inspection of certain social welfare parameters have been also hampering the market growth overtime. In October 2020, about five international auditing firms had refused the inspection of labour abuses in Xinjiang as a response towards severe human right violations. Such factors will further create an adverse impact on the market growth of social audit services with limitations.

Social Audit Services Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Social Audit Services Market. The Social Audit Services Market top 10 companies include:

• Intertek
• SCS Global Services
• TUV Rheinland
• CSR Company International 
• Bureau Veritas
• SGS Group
• HQTS Group Ltd.
• DQS Cfs 
• QIMA
• TUV Nord

Acquisitions/Technology Launches/Partnerships

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