Social audit is based on the principle that democratic local governance should be carried out, as far as possible, with the consent and understanding of all concerned.
The term "social audit" was used as far back as the 1950s. There has been a flurry of activity and interest in social audits in India and neighbouring countries over the last seven to eight years.
The first organisation in India to conduct social audits was Tata Iron and Steel Company Ltd. (TISCO), Jamshedpur, in 1979.
Social audit gained momentum with the introduction of the 73rd Amendment to the Constitution in 1992, which established the three-tier Panchayati Raj institutions.
The approach paper to the 9th Five Year Plan (1997-2002) laid a strong focus on Social Audit for the efficient operation of Panchayati Raj Institutions, and gave Gram Sabhas the authority to perform Social Audits in addition to their other duties.
The National Rural Employment Guarantee Act of 2005 (now MGNREGA) stipulates that Social Audits must be conducted on a regular basis to maintain the programme's accountability and transparency.
