Machine Translated by Google THE SOCIAL REPORT RESEARCH DOCUMENTS N ° 1 GUIDELINES FOR REVIEW OF THE SOCIAL REPORT GIUFFRÈ EDITOR Machine Translated by Google THE SOCIAL REPORT RESEARCH DOCUMENTS N ° 1 GUIDELINES FOR REVIEW OF THE SOCIAL REPORT GIUFFRÈ EDITOR Machine Translated by Google RESEARCH DOCUMENTS Machine Translated by Google Machine Translated by Google 3 DOCUMENT NO. 1 GUIDELINES FOR REVIEW OF THE SOCIAL REPORT Machine Translated by Google 4 Guidelines for the revision of the social report INDEX INTRODUCTION pag. Basic reasons. ... .... ... . ... .... ... . ... .... ... . ... .... . 7 General characteristics. . . . ... .... ... .... ... . ... .... ... . ... .... . 7 Working group . . . .... .... ... .... ... . ... .... ... . ... .... . 8 The document . . . ... .... ... . ... .... ... . ... .... ... . ... .... . 9 Part I STRUCTURE AND CONTENT OF THE DOCUMENT 1. Utility and purpose of the review. . .... ... ... .... ... . . ... .... . 13 1.1. Risks associated with the preparation of the social report. . .... ... . . 13 1.2. General guidelines of the revision. . ... . ... .... ... . ... .... . 14 1.3. Duty of the auditor. ... .... ... . ... .... ... . ... .... . 15 1.4. Responsibility for drafting the social report. .... ... .... . 17 2. Review activity. . . .... ... .... ... . ... .... ... . ... .... . 17 2.1. Authorized subjects. . . . . ... .... ... . ... .... ... . ... .... . 17 2.2. Professional ethical standards. .... ... . ... .... ... . ... .... . 18 2.2.1. Professional competence. . . . ... .... ... . ... .... . 18 2.2.2. Diligence. ... . ... .... ... . ... .... ... . ... .... . 19 2.2.3. Independence. . ... .... ... . ... .... ... . ... .... . 19 2.2.4. Use of the services of other parties. . . . . ... . ... . 20 2.2.5. Compensation. . . . ... .... ... . ... .... ... . ... .... . 21 2.2.6. Responsibilities of the Auditor. . . ... .... ... . ... .... . 22 3. Verification procedures. . ... . ... .... ... .... ... . ... .... ... . . 22 3.1. General aspects of verification. . ... . ... .... ... .... ... . . 23 3.1.1. The definition of the assignment. . . ... .... ... .... ... . . 26 3.1.2. Strategic analysis. .... ... . ... .... ... .... ... . . 27 3.1.3. Process analysis and internal control system. . . 28 3.2. Verification of information relating to corporate identity. . .... . 29 3.2.1. Verification objectives and procedures. . . ... .... ... . ... . 31 3.2.2. Verification of the institutional structure. . . . . ... . ... .... . 33 3.2.3. Verification of reference values and mission. . .... . 35 3.2.4. Verification of strategies and policies. . . . ... . ... . 39 3.3. Verification of data referring to the production and distribution of value added . ... . ... .... ... . ... .... ... . ... .... . 40 Machine Translated by Google Index 5 3.3.1. The verification activity. ... .... ... . ... ... . ... .... . 43 3.4. Verification of the social relationship. . .... .... ... . ... ... . ... . 45 4. Attestation report. . . ... . ... .... ... . ... ... . ... .... . 46 4.1. Certificate of conformity. ... .... ... . ... .... ... . ... . 46 4.2. Attestation with exceptions. ... .... ... . ... .... ... .... . 47 4.3. Certification with indications for improvement. . . ... ... . ... . 55 4.4. Attestation with information recall. . . ... ... . ... .... . 56 Part II APPENDIX Revision approach example: 'personal' category. . . . ... . ... .... . 61 Example of attestation of conformity. . . . .... ... . ... .... ... . ... . 62 Machine Translated by Google 6 Guidelines for the revision of the social report Machine Translated by Google Introduction 7 INTRODUCTION BACKGROUND REASONS The need on the part of all operators to obtain reliable information on the performance of businesses extends to content of each document that is published. The budget social security is becoming more and more important due to its characteristic of providing additional information necessary for the evaluation of the company, its objectives and compliance with ethical principles in the interest of the company and therefore judgment of an independent subject is an indispensable element. GENERAL CHARACTERS The corporate social report is a document through the which companies give a responsible and transparent account (accountability) of how they behave towards them of all those who are interested in them in some way activity (1). The latter are defined with the concept of stakeholder, which is used here according to the definition provided from the GBS, that is, as "subjects (understood in the sense of individuals, groups, organizations) that have significant relationships with the company and whose interests are involved in various capacities in the company's activities due to the exchange relationships they maintain with it or because they are significantly influenced by it " (2). (1) See GROUP OF STUDY FOR THE SOCIAL REPORT , Principles of preparation of social report, GBS, Milan, 2001, p. 9. (2) SOCIAL REPORT STUDY GROUP , Principles for drafting the social report, cit., P. 9. Machine Translated by Google 8 Guidelines for the revision of the social report WORKING GROUP The completeness, correctness and reliability of the information provided are necessary conditions for the reader can have a faithful picture of the company. The complexity matter necessarily requires the existence of principles which the editors and auditors of the social report can refer. There are numerous attempts to establish principles of common acceptance, however, as the history of accounting principles relating to the financial statements teaches, it is a question of of a challenging and endless path. In this regard, the "GBS Study Group for the Social Report" has prepared a body of principles for immediate use, well aware that economic and social changes, as well as national and international directives will impose continuous adaptations. The need to offer the possibility of confirming the reliability of the data by third parties has consequently given rise to the need to submit the data contained in the social reports even in the absence of commonly accepted drafting principles. This document is the result of the work of the members of the group who, in various meetings, discussed each other on the highlights of the check. Further insights carried out within the scientific committee have led to the final draft of the document. They collaborated: Coordinators: Pietro Portaluppi Gianfranco Rusconi Members of the working group: Paolo Bersani Antonio Candotti Riccardo Giovannini Gaspare Insaudo Anna Paris Stefania Servalli Machine Translated by Google Introduction 9 THE DOCUMENT The auditing standards for the financial statements are prepared by specific international and national bodies and similarly it is to be expected to happen for the social report. This document is intended as an in-depth contribution and an outline for their first application in Italy having as main reference the GBS principles, but not excluding their applicability to social balance sheets drawn up according to other principles. Machine Translated by Google 10 Guidelines for the revision of the social report Machine Translated by Google Structure and content of the document 11 Part I STRUCTURE AND CONTENT OF THE DOCUMENT Machine Translated by Google 12 Guidelines for the revision of the social report Machine Translated by Google Structure and content of the document 13 1. Utility and purpose of the review 1.1. Risks associated with the preparation of the social report The preparation of the social report in a highly competitive context, also in terms of image, entails the risk of behavior damaging the reliability and credibility of the document in question, in particular: a) adaptation of the social report to the image needs of company management and not to faithful information to stakeholders; b) exclusion, i.e. lack of interest in some stake holders or lack of exposure to unfavorable behavior to the company; c) drafting of documents that do not comply with adequate criteria of neutrality and objectivity. These risks are faced in the first place with the establishment of adequate standards, both on principles and on procedures and methods of drafting documents. Here we indicate the principles to be used to ensure (at various levels of confidence and guarantee) the reliability of the social report. The fundamental risk for this document is in fact the unreliability, which then leads to non-credibility on the part of stakeholders. The GBS, in particular by including coherence and neutrality among its principles, obliges those who draw up the financial statements to follow certain rules that they must guarantee the reliability of the document. Only the previous principles have been listed because they best exemplify the rules to follow to escape the risks indicated above, rules which must be respected be "guaranteed" by the auditor, who obviously has the fundamental task of checking whether what has been published Machine Translated by Google 14 Guidelines for the revision of the social report blicato corresponds to the principles that the company itself declares to want to follow. The auditor's report represents the only guarantee in the employee and external to the top management on the reliability of the document in question, not in the sense of an impossible "Certainty", but in that of ensuring compliance with principles and rules that make what has been disclosed reliable from the company. It is evident the incorrectness (also in terms of competition on the market) of presenting untruthful information and data after having declared to comply with principles of high ethical and social value. An operation of this kind is not only ethically reprehensible, but, once discovered, it casts discretion on the whole issue of social responsibility and social balance, strongly damaging the image of companies, including those that behave correctly. 1.2. General guidelines of the revision The task that awaits the external auditors of the social financial statements it is therefore very demanding, as an approximate and superficial work on these documents would not only denote a poor professional ethics, but would also involve, more or less in the medium-long term, a serious damage to the credibility of both companies and all professionals who certify its correctness. In general, the auditing principles for the social financial statements: - they must take into account the expectations of the stakeholders to avoid phenomena of "expectations gap". The various degrees certification (positive, negative, etc.) present in the principles must be communicated with extreme clarity to the stake holders, both to avoid the aforementioned "gap" in expectations, and, on the other hand, not to suggest that the attestation can be obtained through a superficial review; Machine Translated by Google Structure and content of the document 15 - must combine the terms with the result of the review of reliability or attestation (1), which make it easy to provide information and assessments, without generating Expectations "gap"; - they must provide that no level of certification can be given to a social report that is not accompanied by an audited annual and consolidated financial statements. In the case of small to medium-sized companies, that do not audit financial statements, simplified corporate financial statements can be provided or to sector or district social balance sheets, but it should be clearly highlighted that this certification is of a different type from that relating to the GBS social report, as indicated here; this implies specific guidelines, which do not fall under these general auditing standards. 1.3. Duty of the auditor Given that the social report can be understood as a document with final data or estimates for use: - of the stakeholders; — del top management; the document referred to here is the financial statements social balance for use by all interested stakeholders, however, recalling that the ex post nature of the budget does not exclude the need to present projects, procedures and declarations, the judgment on which will be made, however, from year to year by examining the final results. For example, a company describes its own in its social report long-term projects to combat accidents on the work and presents procedures, rules, amounts allocated and results (1) Frequently the term "assurance" is used which could be translate as "assurance" but which does not seem to represent the content of the auditors' report. Machine Translated by Google 16 Guidelines for the revision of the social report expected dates; the stakeholder judgment will come to form away on the various final social balance sheets which will show the results achieved and, from these, it will be possible to evaluate all the projects, procedures and allocations made. The auditor's task is: - check whether, and to what extent, the envisaged procedures have been effectively implemented, the declared allocations made and the announced rules respected; - certify the achievement of results in the various years cizi, in relation to the projects indicated in the social report. The characteristics of the social report to which it refers this document are those contained in the project presented by the Study Group for the social report. While the separate and consolidated financial statements concern the performance of the firm on the market, so as to allow to actual and potential shareholders, employees, lenders, public authority, etc. to know imperfectly, but sufficiently reliable (2), the performance of the company, in order to be able to regulate their choices on the various markets (securities, labor, credit, etc.), the social report, in in a certain sense, "integrates" the financial statements and consoli given, having as the subject of reporting not so much the economic- financial results from the point of view of the company, but any type of performance and / or behavior that has a dealing with interests, rights, living conditions in general, of all those involved in the business activity (3). Given this specific nature, the social report has a purpose other than the separate and consolidated financial statements e (2) In fact, not only objective values are included in the financial statements, but also estimated and conjectured values, which must be calculated with technical discretion in good faith. (3) A higher is needed for private and public non-profit companies specificity, which will be provided in further documents; here the reference model the main one is the for profit enterprise. Machine Translated by Google Structure and content of the document 17 therefore it cannot be included in the essential core of the economic- financial communication, which is made up of balance sheet, income statement and explanatory notes. It is believed so it is necessary to insert the social report attached to the management report, as an external supplementary document to the separate and consolidated financial statements, just like the values, the notes and forecasts provided by the management report itself. The audit of the social balance thus implies a responsibility and a periodicity parallel to that of the annual and consolidated financial statements, connecting to a unitary vision of the company. 1.4. Responsibility for drafting the social report The responsibility for the preparation of the financial statements lies with the Board of Directors of the body that draws it up. In this regard, GBS has issued appropriate «Principles of drafting of the social report ", to which reference is made in this document. The independent auditor certifies compliance with the drafting principles, issuing a specific report and expressing his professional judgment. 2. Review activity 2.1. Authorized subjects The auditor of the social balance sheet must have adequate professional competence. The same must be true for any collaborators he makes use of. This competence must be certified by means of a professional qualification exam for qualifications and exams or even only for qualifications if the latter are one clear indication of professional competence. Machine Translated by Google 18 Guidelines for the revision of the social report The suitability for auditing the social financial statements could be proven by enrollment in a specific Register, indispensable registration for anyone who signs, in any form and degree, an attestation of a social balance sheet. In the current phase, the same subjects are considered qualified qualified for auditing and suitable for issuing certifications for the financial statements. 2.2. Professional ethical standards 2.2.1. Professional competence The professional competence, which must be valid for the auditor and for any collaborators he makes use of, can be obtained: - for those who are already an auditor, through integration with suitable knowledge of social reporting or on the basis of already proven and demonstrable experience in the field social reporting; - for those in possession of degrees, three-year, four-year or five-year, of an economic-social nature, through integration with suitable reporting knowledge social reporting or on the basis of already proven and demonstrable experience in the field of social reporting, as well as integration with suitable knowledge: - the separate and consolidated financial statements and the principles of business management; - sociological; - economic-political; - environmental. The required knowledge can be demonstrated by certifying the taking of specific exams in the disciplines in one's curriculum. indicate. Machine Translated by Google Structure and content of the document 19 Maintaining professional competence requires continuous updating in the disciplines pertaining, directly or indirectly, to auditing the corporate financial statements. By way of non-exhaustive example, the accounting, environmental, social, economic and political disciplines (4). 2.2.2. Diligence Professional diligence is understood as the auditor's commitment to fulfill his or her professional duties and, in particular, to observe the auditing principles of the corporate financial statements in carrying out his or her business. If the auditor of the social balance sheet makes use of collaborators, the exercise professional diligence requires proper management of the work carried out, as well as an activity of constant control e critical review of the findings and conclusions reached. 2.2.3. Independence The auditor of the social balance sheet must be in a position of independence in the performance of the assignment. It, together with competence, it is the basis of the credibility of the review of the social balance sheet, which constitutes a guarantee for i various stakeholders regarding the certifications included in the document subject to review. The report of the auditor of the social financial statements represents the only guarantee for the stakeholders independent and external to the company on the reliability of the document in question. This means that independence involves: the nature of the auditor's relationship with the company, the whose social report is subject to review, and with its stakeholders and the disclosure of these reports. (4) In relation to the maintenance of the competence are to be foreseen mechanisms based on the acquisition of credits, similar to those already adopted by professional bodies. Machine Translated by Google 20 Guidelines for the revision of the social report Independence is to be understood both on a formal level, how much on the substantial one. Independence formally requires the non-existence of functions performed by the auditor at the company whose financial statements are being audited or at parties related to it, which are to be considered irreconcilable, for the different or opposing purposes they pursue, with the role of auditor of the social report. On the substantive level, it requires an attitude mentally independent towards the client who must remain constant during the course of the assignment. Independence in this sense implies intellectual honesty, fairness, sincerity and objective behavior for the auditor, which requires impartiality and freedom from constraints capable of influencing his professional judgment. The requisites of independence required of the auditor of the social financial statements are no different from those required of the auditor of the separate and consolidated financial statements. Independence does not require the distinction between the auditor of the separate and consolidated financial statements and the auditor of the financial statements social, provided that the skills required for the performance of the two types of assignment are present. 2.2.4. Use of the services of other parties The revision of the social balance may entail the need to have recourse to specialists in certain disciplines; yes think, by way of example, of sociologists, experts in ecological-environmental disciplines, etc. In case of use of the services of specialists, the auditor assumes responsibility for the choice of the type of suitable experts to obtain those audit evidence deemed necessary for the issuance of the certification on the social balance sheet. The auditor of the social balance also made the choice the type of specialists suitable for the review in question, is responsible for assessing the adequacy of the qualification e Machine Translated by Google Structure and content of the document 21 professional reputation, as well as independence of the specialists whose collaboration is requested, in relation to the professional activity that they will carry out in the context of the audit. The qualification, the professional reputation of the experts, as well as a trace of the critical reading of the expert's report, must be suitably documented by the auditor. 2.2.5. Compensation The auditor of the social balance must be able to receive a remuneration adequate for the position performed. The adequacy of the remuneration is attributable to the independence of the auditor must have towards the company whose social balance sheet is subject to review. The fee obviously cannot be correlated to the result of the review, since the latter is the site of a professional activity carried out with integrity, object to life and in the absence of any interest that could influence the the auditor's opinion. Its adequacy is to be evaluated with reference to the quantity and quality of the revision work. In particular, the amount of the remuneration must be such that it is not entail time limitations, checks and inspections, nor does it affect the professional qualities needed to formulate the certification on the social balance sheet. In the determination of the remuneration it is also necessary provide for the possibility of any adjustments related to facts of an extraordinary nature involving the necessity of an extension of the auditing procedures necessary for the issuance of the attestation. If in particular cases (such as ad for example, the audits of financial statements of non-profit companies) the absence or limitation of remuneration is envisaged, that is however, it must affect the quantity or quality of the work revision, for which the responsibility of the revi remains intact sore. Machine Translated by Google 22 Guidelines for the revision of the social report 2.2.6. Responsibilities of the Auditor The certification area is identified in the entire Report Social, in its qualitative and quantitative contents, both they refer to the company as a whole and to individuals operational areas or production sites of the same. The verification activity concerns the completeness and correctness of the contents of the Social Report with respect to what is indicated by the drafting principles as formulated by the GBS and any other references chosen by the company for his editorial board. The objective of the revision of the social report is to confirm the veracity of the quantitative and qualitative information contained therein. They fall into this category also quantitative data, of an extra-accounting nature, and the qualitative information they describe goals, results, behaviors, trends and other aspects concerning the company's operations, its social responsibility actions and its relations with its stakeholders. 3. Verification procedures The principles for drawing up the social report (5) define the structure of this document in the following three parts. - corporate identity; - production and distribution of added value; - social relationship. Verification activities must be organized in such a way such as to compare what is stated in the social report with the content envisaged by the principles for the preparation of the financial statements e (5) As already referred to several times in the description of the various operations, yes refers to the principles set out in the document «Principles for Preparing the Financial Statements Social »of the GBS; however, the principles suggested for verifying information they are valid for any social report showing those parts dealt with in this document. Machine Translated by Google Structure and content of the document 23 with the documentation proving the correctness of the information presented. 3.1. General aspects of verification The activity of verification of documents of a non-financial nature ("Non financial assurance") consists in carrying out analyzes and checks (which also include assessments and measurements) on a set of data, information and claims, which are normally collected in a summary document (report / social report, «non financial report» in the terminology an glossasone) and whose responsibility lies with another person (normally the Board of Directors), with respect to the criteria and guidelines set out, in order to express a professional opinion, based on the reference principles applicable in the this case, which gives an adequate level of confidence to the parties concerned about the overall "quality" of the audit elements. Since there are currently no universally recognized principles neither for the reporting model nor for the method of carrying out the audit, referring to the GBS standard, the audit elements of the social report can be divided as follows: - information / data directly correlated to the financial statements for the financial year and consolidated of the company; - information / data not directly correlated to the financial statements and consolidated financial statements but more generally to the system information and management control of the company. In order to correctly set up the verification work of the social report, it is necessary that the financial statements e consolidated have been audited. In in the absence of an audit of the statutory and consolidated financial statements, there may be limited forms of verification which would constitute preparatory activities to allow the society to progress in its internal systems and processes, e to reach, through successive improvement phases, the obtaining of a high quality standard certification. Machine Translated by Google 24 Guidelines for the revision of the social report For the purposes of issuing the certificate, the areas subject to exam are: - the structure of the document with respect to a standard taken as a reference (social balance sheet and index content); - the processes that support the company in processing, management and collection of quantitative data; - the contents of the separate and consolidated financial statements, in theses as quantitative and qualitative data and information in it contained. The prevailing practice is currently that of identifying as the objective of the verification, the Board's statement of Administration, normally included in the introductory part of the social report (the "methodological premise"), which the document has been drawn up in accordance with certain specifications standards and guidelines. Such standards can relate to the structure of the document, the processes, the contents. In practice, today many social balances report in the methodological pre-mass the reference to a generic inspiration from existing standards (typically GRI, GBS, AA1000), without identify what and how much of each of them was actually used in the drafting of the document. This behavior makes verification more difficult for the auditor the compliance of the audited financial statements with the same standards referred to therein. Also for the activities of verification of documents of nature the concept of materiality is fundamental, as an error / omission in the information contained in the social report which, if identified, can modify the opinion on the document itself from part of an external interested party and therefore on the overall reliability of the information contained therein. Regarding the concept of materiality in the scope of the social balance sheets, its prior definition in the planning phase Machine Translated by Google Structure and content of the document 25 nification and, consequently, its application in auditing activity, is a more complex activity to define than what happens for the financial statements. The results of corporate social management concern a variety of stakeholders, for whom the interest is not exclusively financial and differs according to the areas of social relationship. It was pointed out that the social report has it for its own same nature a plurality of stakeholders (from logic of shareholders in the separate and consolidated financial statements a that of the stakeholders of the social report) and this results from the different types of performance indicators, intended to the various stakeholders. However, it is clear that the report will be addressed to the corporate body which requested it and to which the auditor is professionally accountable. It cannot be excluded that companies that are particularly advanced in managing dialogue with stakeholders may agree to instruct the auditing firm to carry out specific verification procedures on audit elements whose request has been submitted by another company stakeholder (for example, a consumer association may require data and information to be audited of the "customers / users" section of the Social Report). In in this case, it does not appear impossible that the report of the auditing company is addressed not only to the company drafted the social report but also to one or more other stakeholder categories. For the setting up of the verification activity, reference was made to the international standards on revision ed in particular the International Standard on Assurance Engages 3000 (6). (6) This document is applicable to reports dated after 1o January 2005; however, its early application is permitted. Machine Translated by Google 26 Guidelines for the revision of the social report The general approach of the verifications evidently has a substantially accounting matrix, then integrated to be able to take into account all the areas of non-quantitative content and not attributable to the financial statements. This entails as a consequence the multidisciplinarity that must characterize the work team for these tasks and consequently the structure of the person authorized to carry out verification activities. From the analysis of the existing standards in the field of auditing, a general approach to the auditing activity emerges which is necessarily common to the entire social report. This approach essentially envisages the following operational phases: - definition of the assignment; - strategic analysis; - analysis of the processes and of the internal control system; - definition of the substantive verification procedures. 3.1.1. The definition of the assignment This is a very delicate preliminary phase, which develops through a series of meetings with the management of the potential client company, and is essentially aimed at understanding the needs of the same, for a correct definition. of all aspects relating to the assignment and in particular: the object, the purpose, the criteria / guidelines / principles of reference, the type of report that should be issued, the terms and fees. The most significant and delicate aspect of this phase is to understand if the potential client company can undergo a high quality standard check of its social report. In fact, it is at this stage that, faced, for example, with companies with serious deficiencies in terms of processes and systems that involve significant risks of errors or gaps in the information and data reported in the social report, the auditor must present to the potential customer all his doubts regarding the successful outcome of the verification and, in some cases, he will be able Machine Translated by Google Structure and content of the document 27 propose a progressive approach starting for example from the preparation of internal memoranda, highlighting the points for improvement, to then arrive at the complete revision through, if necessary, further intermediate stages. 3.1.2. The strategic analysis It is the first phase of the execution of the assignment. The objective is to obtain an adequate understanding of the customer's business, in order to identify the risks related to it, which may have impacts and consequences on the information and data contained in the document subject to verification. Through meetings and interviews the auditor must: - acquire a general knowledge of the client and his history; - understand the type of business and its main characteristics; - obtain information on the client's objectives and strategies; - identify the risks related to the customer's business, with particular reference to those that may have impacts and consequences on the information and data contained in the corporate report; - obtain general information on the processes and internal control system that support the management of the client company in the management and control of the aforementioned risks; - obtain general information on the information system. Both for this and for the subsequent phases, the extension of the work will be significantly different depending on whether or not the client has an audit of the separate and consolidated financial statements. Assuming that the statutory and consolidated financial statements are audited, for all data and information directly correlated to the statutory and consolidated financial statements Machine Translated by Google 28 Guidelines for the revision of the social report given, in the auditing of the social report, reference will be made to the study of the processes and of the internal control system carried out by the audit team. In case the auditor of the social financial statements were different from the auditor of the financial statements and consolidated financial statements, the former must be able to examine the working papers of the second and, if he is not satisfied of the checks carried out, proceed with further checks. For information and data that cannot be directly correlated to the separate and consolidated financial statements, nor to particular risks associated with the customer's business, it will be necessary to identify the relative information flow and ascertain whether and how such information and data are processed and controlled. In the specific case of the verification of the Social Report another aspect of particular importance in this phase of work will be the verification of correct identification by of the customer of the different categories of stakeholders. 3.1.3. Process and control system analysis in Tuxedo Without prejudice to the clarification referred to in the previous point, on the existence or not of an audit of the financial statements and consolidation of the client company, this phase has as objectives: - assess to what extent the risks associated with the activity of the customer and relevant for the purpose of verifying the social report are covered by the procedures and controls activated by the customer; - define the detailed tests that the auditor will have to carry out tuare for the expression of his professional judgment. These objectives are pursued through: - meetings and interviews with the management and with the heads of the various company departments to carry out an appropriate survey of the processes and the control system internal relating to the risks relevant to the verification of the corporate financial statements; Machine Translated by Google Structure and content of the document 29 - carrying out of tests, verification of documentation a sample and, if necessary, physical checks of the different sites productive, in order to obtain supporting evidence the effectiveness and efficacy of the processes and system internal control; - overall assessment of the occupational risk associated with the various audit objectives, according to the definition of the typical risk of the auditing activity. It should be noted that the analysis of the processes and the system of internal control necessarily involves knowledge of the customer's information system, which supports the processing, management, registration and reporting of data and information. The aforementioned activities will allow the auditor to confirm their preliminary assessments regarding the "quality" of the client and the possibility of expressing an opinion. positive or to modify / integrate its approach and the planned verifications and to agree, if necessary, with the client a different purpose and a different type of final report. On the basis of the final assessment of the professional risk associated with the various objectives of the audit and of the system internal control procedures, the auditor will plan the substantial verification procedures, defining the nature and extent of the reasonableness tests and the detailed tests that must be carried out on the information and data contained in the social report. 3.2. Verification of information relating to company identity dale The corporate identity is aimed at allowing the users of the social report to evaluate the performance of the company, by comparing the declared values and mission and the results of the activity carried out. Machine Translated by Google 30 Guidelines for the revision of the social report The principles of drafting the Social Report articulate the e explanation of corporate identity in five points: - the institutional set-up; - the reference values; - the mission; - strategies; - policies. The institutional structure includes the elements that make it possible to objectively identify the company such as ownership, governance, the synthesis of the history and evolution of the company, size, position in the sector to which it belongs, organizational structure and the like. The reference values, which should be summarized in order to facilitate their understanding, are those that objectively must guide the choices of the individuals operating in the company. The principles of drafting the Social Report recognize the variability and plurality of values that can be taken as a reference in the company, but establish that, in any case, the following formal requisites must at least be respected: - mandatory: the established values must effectively be established as a guide for the behavior of the people who work in the company; - compliance: the stated values must be respected and observed; - stability: the stated values must be confirmed for a significant period; - generality: the established values must guide all the activities and relations of the company; - impartiality: the values must be applied impartially in the behavior of the various subjects in relation to the company, in relevant cases; - universality: the values must be applied in all circumstances in which they are relevant. Machine Translated by Google Structure and content of the document 31 The mission describes the main purposes of the company pursues in the economic and social field and in relations with stakeholders, in light of the established values. The strategies must illustrate the ways in which the company intends to pursue its mission in the medium and long term, in compliance with the established values. Policies must indicate short-term goals, the choices, the management of resources, aimed at the realization of the strategies defined. The core of the corporate identity is constituted by the values and from the mission: the institutional structure must be functional to their realization and must identify the subjects who they are, at various levels, responsible; strategies and policies must constitute the necessary link between the general principles affirmed and the actions taken, as they are reported in the social report, as well as represent the actions planned in the short, medium and long term, to pursue the company mission. 3.2.1. Verification objectives and procedures The objectives of the corporate identity check can be traced back to the following main points: - Completeness. All significant components relevant to each of the five elements must be indicated of corporate identity. Elements must not be withheld which, if known, could modify the understanding or appreciation of the users of the social report. - Fairness. This objective is pertinent to the components of the institutional set-up and to the one likely to be "True" or "false": it is possible to ascertain the correctness of the statement that a firm is owned by A and B, but not the claim that economic profitability is a value of reference. - Consistency. The statements contained in the explicit corporate identity must not contradict Machine Translated by Google 32 Guidelines for the revision of the social report diction between them, nor with other points of the Social Report, nor with other official information (balance sheet, statute, regulations internal) or well-known, pertinent to the company. - Reasonableness. Although many of the components of the elements that make up the corporate identity are not likely to be "true" or "false", they can be pale seeds unreasonable: think of strategies that are clearly destined for failure, in light of the size of the company or of available resources. It can be traced back to this objective also the ascertainment that the affirmed values and the mission do not are clearly in contrast with common ethical principles feel (think of an organization that defines how reference value the defense of the breed or similar). - Compliance with formal requirements. The examination tends to ascertain that the clarification of the system of reference values has meaning and is understandable to the reader. - Continuity of application over time. Verification must ascertain the consistency of the corporate identity within the Social Reports over time: stability in particular of reference values and mission, relative stability strategies in the short term (or the reasons for the changes) and the coherence of the policies with the improvement plans indicated, within the social report, during the year previous one. In principle, the assessment objectives of the completeness, consistency and continuity of application over time they are to be pursued in the verification of each of the elements of corporate identity, while other objectives they are relevant only to some elements or to some components of these. By way of non-exhaustive example, the procedures of verify that they can be applied to reach the objectives indicated could be the following: - detailed examination of the various parts of the social report, of the separate and consolidated financial statements and the report on the Machine Translated by Google Structure and content of the document 33 management, as well as the internal regulatory system (statute, regulation, ethical codes, disciplinary code, etc.); - reading of the minutes of the meetings of the Board of Directors, the Executive Committee, the Ethics Committee o of equivalent management or control bodies; - examination of the shareholders 'register and the minutes of the Shareholders' Meetings; - other documentary evidence of relevant information sources (budgets, multi-year plans and the like); examination of the correspondence with the various categories of stakeholders such as shareholders, personnel, etc .; - interviews with responsible subjects (subjects who hold governance functions, responsible for relations with i partners, personnel managers, network managers of sales and the like). The selection of the verification procedures to be applied in the different cases, in order to achieve the identified objectives, is, as always, entrusted to the professional judgment of the subject in charge of verification: the various elements making up the corporate identity do not in fact seem susceptible the application of mandatory verification procedures in all circumstances. 3.2.2. Verification of the institutional structure The components of the information contained in the structure institutional must be verified, in particular, to ascertain its completeness, correctness and continuity in the time. Of particular importance is the information about the properties, both in absolute terms and in its modifications during the course weather; in fact, they make it possible to appreciate the reference values, the mission, the strategies and the policies in a different way: it is unlikely that if the property belongs to King Herod, the affirmed value of protecting children will be credible; similarly it is It is important to know that the ownership of a company has passed from UNICEF to King Herod. Machine Translated by Google 34 Guidelines for auditing the social report Information on the size of the company, often provided by indicating some relevant parameters, on its position in the sector to which it belongs and on its organizational structure are relevant to appreciate the strategies and policies defined for the pursuit of the mission. Finally, it is important that this part contains identifying information (addresses of the offices, e-mail addresses, telephone and fax numbers) that allow stakeholders to contact the company directly, activating, also in this way, communication channels from periphery towards the top, which are of particular importance for the Social Report, intended as a tool for maintaining a harmonious and continuous relationship with the stakeholders. The controllers will verify the correctness e the completeness of the information presented within the institutional set-up taking into account that completeness entails the right emphasis on changes compared to the past, when these are significant both in terms of size (for example a loss of turnover due to the loss of important markets), both in qualitative terms (for example the change of control group within the property), for the reader of the social report. The control procedures to be applied are to be decided case by case according to the information provided. By way of example, the following is noted: . to verify the property or the changes that have occurred in the property: - examination of the shareholders' register and the documentation of the attendance at ordinary and extraordinary Shareholders' Meetings; - Chamber of Commerce registration when relevant; - requests for information from responsible persons governance. . for the verification of the forms of governance and the organizational structure of the company: Machine Translated by Google Structure and content of the document 35 - examination of the statute, examination of the minutes of the Assembly blee of shareholders and meetings of governance bodies; - request for information to the heads of the government nance; - examination of the relevant company documentation (organization charts, service orders, etc.). . for the verification of the size profile of the company e of its position in the sector to which it belongs: - request for information from the heads of governance and control bodies; - examination of financial statements, management reports and control reports (statutory auditors and auditors); - critical and reasoned examination of the general and sector economic press. . for the verification of information about the history and evolution of the company: - critical and reasoned examination of the general economic press and of the sector; - examination from a historical perspective of the minutes of the Shareholders' Meetings blee and the meetings of the Board of Directors; - request for information from responsible persons of governance and to corporate figures with a historical memory. The managers of the social information can be networks by omitting information: in these cases, the manager the control will have to discuss with them, with those in charge of governance and with the supervisory bodies, reporting the needs to integrate the information and if necessary, it will have to report the lack of information in its final report. The auditor, in more serious cases, will also have to take in consideration of the need to renounce the office. 3.2.3. Verification of reference values and mission It is not the responsibility of the controller, except for ascertaining reasonableness, entering into the merits of values Machine Translated by Google 36 Guidelines for the revision of the social report reference and mission declared by the company, neither, in headquarters of social budget control, measure the degree of "Sociality" that emerges from the established values and mission. Therefore, the control approach does not differ substantially if the audit concerns a company that claims how the only value is business ethics (compliance with agreements, profitability, etc.) and as a mission to get rich and prosper, rather than a solidarity non- profit organization that declares the noblest values and a highly humanitarian mission. In both cases, the supervisor must focus on ascertaining the reasonableness, consistency, compliance with formal requirements and continuity over time. The verification of reasonableness, preliminary to the others, aims to ascertain, as has been said, that the declared values and the following mission are not in conflict with ethical principles of common feeling, with the laws and other normative sources in which is the substance of the citizens' social pact and that the values and the mission are not clearly impracticable, in consideration of the nature, size and context in which the firm is operating. The declared values and the consequent mission must meet the formal requisites indicated by the Principles for the preparation of the social report. This verification does not end in the their direct examination, but it is contextual to the assessment of the consistency, which is the central control task business suitability. The assessment of consistency and compliance with the requirements formal is divided into various aspects, which can be summarized in the following questions :. Are the declared values consistent with each other? Social solidarity and social solidarity can be declared between values economy understood as efficient use of available resources, but it will be difficult to reconcile the value of solidarity social with that of the maximum profitability of the investment of the shareholders; Machine Translated by Google Structure and content of the document 37 . Are the declared values consistent with the mission? If the mission is the enrichment of the members and prosperity of the company, as perfectly legitimate, it will be inconsistent to declare social solidarity between founding values. . Does the explicit mission not contradict any of the formal requirements and in particular generality and impartiality? . The evidence contained in the internal company regulations (statute, regulations, ethical codification, quality manuals, disciplinary codification, etc.) do not contradict the mission, i values and their formal requirements? . Values and mission are consistent with the evidence that emerge from: - financial statements and consolidated financial statements, the consolidated financial statements (if any) and the management reports; - report of the added value; - single points of the social relationship within the Social Bi launch? . There are facts or circumstances relevant to the firm, either emerging from internal company documentation, and from information deriving from other secure sources, sufficiently widespread and easily identifiable, which contradict the mission, the established values or the existence of the related formal requirements? Think of a company that declares business ethics as one of its values and therefore the refusal of acts of competition unfair, and which is instead sanctioned in a proceeding for bribery of public officials in order to win one public order. It is clear that the assessment of coherence and of the compliance with the formal requirements is an examination that does not end in specific moments of control, which are also necessary, but which involves the entire process of controlling the social balance sheet and must always be present to those responsible for auditing. The verification of the reference values and the mission must finally ascertain compliance with the principle of continuity over time Machine Translated by Google 38 Guidelines for the revision of the social report or, which is almost the same, the formal requirement of the stability of values over time. Therefore, the head of control must ascertain that values and mission, at least as declared, have not significantly changed compared to the past or that, if this is the case, the social report contains adequate emphasis on the fact, the reasons and the consequences. The verification procedures to be applied in part consist of a careful examination of the statements made by the company in terms of values and mission, compared with what has been declared in the past and in a reasoned discussion with those responsible for preparing the Social Report and, in general, with the heads of governance, they partly consist of procedures to be applied for the purpose of verifying other sections of the Social Report, in carrying out which, however, the values and declared mission must be kept in mind. As a non-exhaustive reminder, we will mention, among the latter, the following. - detailed examination of the statement of added value and of the social report, as well as of the financial statements and of the management report (of the consolidated financial statements and related report, where present); - examination of internal regulations (statute, regulations, etc.); - examination of the minutes of the meetings of the governing bodies nance; - examination of the correspondence with the various categories of stakeholders; - appreciation of information emerging from other secure, widespread and verifiable sources (economic press, specialized press, etc.). Also in this case, any anomalies emerging from the checks, the points of inconsistency, the ambiguities, must be discussed with the managers and, if not resolved, reported in the final report. Machine Translated by Google Structure and content of the document 39 3.2.4. Verification of strategies and policies The function of these elements of social identity is that of building a connection between the principles affirmed with i values and the mission and daily operations of the company in an attempt to achieve them, which is periodically reported in the social report. It is necessary to avoid both the excessive generality, which would nullify its informational relevance, either excessive detail, which could harm the company, disclosing confidential details or opening a word on short-term choices that are within their competence exclusive of governance bodies. Taking into account that the strategies have a medium-long term breath and the policies of a short medium term, it is a task of social reporting officers find the right information balance. The task of those responsible for external verification is to ascertain the reasonableness, completeness, consistency, correctness and continuity of the information over time. The assessment of completeness and continuity over time involves comparing the information provided in the financial statements subjected to verification and that provided in the past, to ascertain the stability of the strategies and the updating of the policies in light of the performances reported in the social relationship. If this identifies areas that could be improved, policies must take this into account. Furthermore, the completeness of the information must be ascertained by a comparison between the control managers and the information managers, where the former will indicate any points of reticence and the need for additions or further information. Ascertaining reasonableness involves verification that strategies and policies are practicable taking into account the nature and size of the company and the context in which he has to operate. Machine Translated by Google 40 Guidelines for the revision of the social report The verification of coherence, on the other hand, entails the acknowledgment with the mission and values declared in search of obvious contradictions or points of ambiguity. Verification procedures to be applied are: - the comparison with the financial statements and the management report (and the consolidated information when present), - feedback with the minutes of the meetings of the bodies of governance and control bodies; - feedback with relevant internal sources of information (budget, multi-year plans and the like); - the confirmation with the correspondence exchanged with the various categories of stakeholders; - interviews with those charged with governance and with i operational managers; - the examination of the social report in search of areas of inconsistency or ambiguity. The conclusions of the verification of the corporate identity must be documented and any critical points or remarks unsolved must find space in the final report. 3.3. Verification of data referring to the production and distribution of added value The document «Principles for the preparation of the social balance sheet» prepared by the GBS provides for the presentation of the information on the production and distribution of added value. This magnitude makes it possible to quickly express judgments on the rationality in the use of available resources and on the equity in the remuneration of the factors employed in the exercise of the production activity (7). (7) Both the German working group of the 'Sozialbilanz-Praxis' and the 2002 document of the Global Reporting Initiative 'Substainability Reporting Gui delines' foresee a reference to added value. Machine Translated by Google Structure and content of the document 41 The added value, at the macro-economic level, represents a fundamental quantity of the national economic accounting which corresponds or almost to the national income. and which can be calculated according to different methods (of production, the sum of the remuneration of the productive factors and of the use in consumption and investments); from a micro-economic point of view constitutes the value that an economic organism stratifies on what it receives from the outside and, at the same time, that it generates with the competition of "internal" or rather "structural" production factors. Hence, its determination based on two perspectives: that of carrying out the function of production and that of the remuneration of production factors. These are two perspectives which complement each other and which, therefore, are both essential for an analysis of added value. Both perspectives require reclassification of the figures in the statutory income statement: the first leads to determine the added value as the difference between value of production and intermediate consumption and therefore requires the preparation of the "Value-added income statement", that is, a scalar-shaped prospectus with intermediate results e with the final one represented by the added value; the second assimilates the added value to a fund to compensate the performance of the individual "internal" production factors or better "structural" and therefore requires drawing up the "Pro spect of allotment of added value". It is therefore evident that while the first chapter of the social balance sheet is connected to the management report, the second represents the link between this document and the financial statements. The budget document closely linked to the chapter on production and distribution of added value it is obviously the income statement; on the other hand, the information in the explanatory notes may also be connected to those provided by the chapter in question of the social report. Machine Translated by Google 42 Guidelines for the revision of the social report The "prospectus for allotment of added value" requires, first of all, to identify those who favored them e allowed the training and that, therefore, must be for the recipients of the same. Given that the actors of the environment of an organism production may vary both as a result of the activity carried out from the same, both on the basis of the identification of those towards i which the same organism always recognizes its social responsibility, the fact is that it has always been doctrine and practice have proposed various solutions. The recipients of gross global added value can be considered: - job suppliers; - the public administration; - credit capital providers; - risk capital providers; - the company system; - the community (8). The community represents a perceiver of added value as it is particularly sensitive to behavior socially responsible for an economic unit. The finding that activities aimed at respecting mankind and improving the quality of life - such as the organization of exhibitions and concerts, sponsorship of activities scientific, sporting, restoration and conservation of works of art, of support of humanitarian projects, etc. - I testify to a responsible production of wealth by a company, leads to include the beneficiaries of the same among the recipients of added value; consequently, the costs incurred for these initiatives become components of the quantity under consideration. (8) In economic units, governed in the legal form of cooperative society, the cooperative system, to which the 3 percent of the profit, represents an additional recipient of added value. Machine Translated by Google Structure and content of the document 43 The community represents the beneficiary of the external liberties, as indicated in the document «Principles for the preparation of the social report ", which may concern i contributions and anything else disbursed. The sponsorships of a company active in the field of scientific research, in the field of education, health, social solidarity, of culture, art and sport, for publishing activities, for archaeological recovery and restoration, etc. they represent components of added value. 3.3.1. The verification activity The verification of the data referring to the production of the value ag joint is intended to provide reasonable assurance that: - the data in the value-added income statement are re reconcilable with the data of the statutory income statement; - the reclassification of the income statement items sia was carried out according to what is stated in the illustrative part of the criteria followed; - the structure of the value-added income statement sia compliant with what is stated in the illustrative part of the criteria followed; - the verification of the data referring to the distribution of value added is intended to provide reasonable assurance that: - the data in the allotment prospectus are reconcilable with the data of the value-added income statement and with the data of statutory income statement; - the prospectus for allotment of the added value has been drawn up according to what is stated in the illustrative part of the criteria followed; - the structure of the statement of allotment of the added value complies with what is stated in the illustrative part of the criteria followed. The activity of verifying the data of the value added income statement assumes as a starting point the income statement drawn up in compliance with current legislation and taking Machine Translated by Google 44 Guidelines for the revision of the social report account of the provisions of the accounting standards prepared by the National Councils of Chartered Accountants and Regions and by those IASC / IFRS and IFAC. The statutory income statement is that of the financial statement project approved by the administrative body or that approved by the shareholders' meeting or by the supervisory board, if the social report is published after the financial statements. In any case, it must be an income statement subject to audit by the board of statutory auditors, by an external auditor or an audit firm. The nature, timing and extent of the procedures audit to be performed are determined by the auditor on the basis of his appreciation, deriving from his knowledge of audited company, and the risk of material misstatement in the value-added income statement and in the allotment statement of added value. The procedures for obtaining probative elements could be: - analysis of the instructions prepared by the management for the preparation of the profit and loss account with added value and the prospectus for allotment of added value; - verification of the resolution of the problems that have emerged the previous year; - acquisition of information on inherent changes amortization plans, staff remuneration, the dividend distribution policy, the trend of overdrafts of the loans and rates applied, etc.; - verification of the concordance of the data of the value-added income statement with those of the civil income statement and of the data of the value-added allotment prospectus with those of the value-added income statement and with the data of the statutory income statement; - ascertaining the consistency between the data for the year in examination and those of previous years; Machine Translated by Google Structure and content of the document 45 - assessment of the adequacy of the classification e presentation of data in the value-added income statement and in the prospectus of allotment of the added value with how much stated in the illustrative part of the criteria followed; - assessment of the conformity of the account structure economic value added and the prospectus of allotment of the value added; - assessment of the consistency of the relative information to the «Production and distribution of added value» with i accounting schedules, with the other chapters of the social report e with information obtained from management. 3.4. Verification of the social relationship With regard to the "Social Report", the reasonableness tests and the detailed tests that the auditor will have to plan, as a result of the assessment of the degree of risk professional associated with the different audit objectives and the internal control system, must be defined for each individual stakeholder category. It should be noted that for qualitative information contained in the social report, the verification may concern exclusively: - the completeness of such information with respect to the contents provided for by the model of the social report to which reference is made; - the internal congruence of information. Furthermore, the detection of the degree of consensus on the social report by the stakeholders is considered to be a revision procedure. The verification of the stakeholder engagement process should be carried out by obtaining information from the company with reference to: - methods used; - completeness of the takeholders involved; Machine Translated by Google 46 Guidelines for the revision of the social report - information reported in the social report, respect to the most relevant aspects (considerations, ideas for improvement, objections) that emerged from the involvement process and reported in the relative minutes. The Social Report model proposed by the GBS provides for each category of stakeholder a minimum level of information and data that must be included in the document. An example of the overall audit approach relating to information is provided in the Appendix concerning the "personal" category provided for in the model social report proposed by GBS. 4. Attestation report 4.1. Certificate of conformity Based on the reference documents (ISAE 3000 (9), AA1000-Assurance Standard (10) and FEE Discussion Paper Pro viding Assurance on Sustainability Reports) the test report should have the following structure: - title; - address; - description of the assignment; - identification of the subject of the assignment; - assumption / limitation of the responsibility of the auditor (also considering any limitations to the circulation / to the recipients); (9) L’International Standard on Assurance Engagements 3000 (revised), issued by the IFAC, it is applicable to all reports issued from 1 January 2005 and relates to the execution of auditing and certification assignments other than auditing of financial statements. (10) This is the document for certifying information referring to the activity of an organization in its social, ethical, economic and environmental aspects. While it can be used for any standard, it has been prepared in particular way to be consistent with the principles of preparation of the financial statements of GRI sustainability. Machine Translated by Google Structure and content of the document 47 - identification of the reference standards for the performance of the assignment; - guidelines and reference principles for the preparation of the document subject to verification; - conclusions of the work; - date of the report; - identification of the company and signature of the person in charge of the assignment. In the appendix there is a draft report of att station consistent with the structure described above. 4.2. Certification with exceptions Below are some examples of non-compliance of the social report with respect to the model and the reference guidelines drawn up by the GBS, which involve a judgment with an exception. The examination was conducted considering the different sections which make up the social report and its contents. The cases and examples proposed below do not exhaust the subject, but constitute a first draft on which to start reflection. . Absence of one of the parts that make up the Social Report. In the Principles for Drafting the Social Report of the GBS, three parts are identified as fundamental components of the document: the Identity, the Production and distribution of added value, the Social Report. The absence of one of these three parts is a cause of exception in the certification on the social report. Those relating to the detection of the degree of consent of the stakeholders and the improvement objectives are then provided as supplementary sections. It is therefore a question of assessing whether the absence of one of the supplementary sections envisaged by the GBS also entails an exception in the certification. Machine Translated by Google 48 Guidelines for the revision of the social report In this regard, it should be noted that the GBS includes among the essential elements of the Social Report the indication of the opinions and judgments for each of the identified stake holders, recalling among the contents of this section (Main assumptions by stakeholder category) the process of detecting legitimate expectations and the degree of satisfaction / consent. In the same way it is foreseen among the essential elements of the Social Report an indication of the commitments undertaken e goals. It can therefore be concluded that, if within the Social Report the contents of the supplementary sections are exhausted in a complete and transparent manner, it will only be necessary to evaluate, if necessary, whether to express the formalization of the two specific sections as a point of improvement in the social report of the document. Otherwise, it will only be necessary to provide for the exception in the attestation on the social report, due to lack of transparency and completeness of the information. Finally, it is evident that the only partial start of the stakeholder involvement, as well as only partial formalization of the improvement objectives, even if included in the social report, would be included in the certification as points of improvement of the process. Example: XXX SpA recalls the principles in paragraph YYY of drafting of the GBS but the drafted document lacks one of the sections that make up the scheme or one of the chapters that make up its structure. «This social report was drawn up without that the section is developed in it ''. . . .''/the chapter . ‘‘. .. . . ''. This choice, motivated / not motivated internally of the document, constitutes an element of discrepancy with respect to the drafting principles of the GBS, the application of which is Machine Translated by Google Structure and content of the document 49 call to paragraph ''. . . . . ''. Considering the reality of the editor and assessed the relevance of the section ''. . . . . '' / of the chapter ''. . . . '' in the specific case, we believe . that the 200X social report provides / does not provide stakeholders an accurate overall picture of performance of XXX SpA by placing / not placing themselves in the condition of having useful information on the quality of the business activity also from the point of view ethical-social ". . In this case, it is a question of verifying that all the stake holders envisaged by the GBS have been correctly identified and included in the social report, regardless of theirs significance with respect to the document. Otherwise, an exception must be proposed in the attestation. Any further sophistication than what proposed by the GBS, to be evaluated with reference to the specific sector, could be the subject of a recall as a point for improvement. In this case, it is a question of verifying the correctness and completeness of the analysis that led to the identification of the stakeholders verifying that there are no opportune elements to influence the decisions taken and that, therefore, it is the principle of inclusion has been respected. If not, yes will have to propose an exception in the attestation. Furthermore, the significance of the stake holders on which the company reports its activity must also be assessed. because the outline of the section the «Social Relationship» can be subject to evolution, deepening and improvement. Therefore, with a view to a possible better presentation than what is defined by the company, to be evaluated with reference to the specific sector and the specific reality company, a deficiency found here could be the subject of a recall as a point of improvement. Machine Translated by Google 50 Guidelines for the revision of the social report Example: XXX SpA does not identify, in the social report, one of the categories of stakeholders identified by the model GBS: Personnel, Partners, Financiers, Customers / users, Providers, Public Administration, Community (social interests and environmental interests). «This social report was drawn up without that it describes the qualitative and quantitative aspects of results achieved in relation to the commitments made and the programs carried out towards the stakeholder ''. . . . ''. . This choice, motivated / not motivated in the document, constitutes an element of discrepancy with respect to the drafting principles of the GBS whose application is referred to in paragraph ''. . . . ''. Considering the reality of the re dactor . and assessing the relevance of the section ''. . . . . '' / of the chapter ''. . . . '' in the specific case, we believe that the budget . 200X provides / does not provide stakeholders with a comprehensive overall picture of XXX's performance SpA placing / not placing them in the conditions of having useful information on the quality of the company activity also from an ethical-social point of view ". . Lack of information in the corporate identity The minimum information content required by the model GBS for corporate identity, given the importance of this section for the purposes of the overall value of the social report and of the its comprehensibility, is considered fundamental and therefore significant for the purposes of issuing the certificate without exceptions. Example: XXX SpA recalls the principles in paragraph YYY of drafting of the GBS but the drafted document is missing, in the section the "corporate identity" of one of the chapters that make up the information structure. Machine Translated by Google Structure and content of the document 51 «This social report was drawn up without that the chapter is developed in the '' corporate identity '' section ''. . . . . ''. This choice, motivated / not motivated in the document, constitutes an element of discrepancy with respect to the drafting principles of the GBS, the application of which is referred to in the paragraph ''. . . . ''. Considered the . reality of the editor and assessed the relevance of the section ''. . . . '' / of the chapter ''. . . . .'' in the specific case, . we believe that the 200X social report provides / does not provide stakeholders with an accurate overall picture of performance of XXX SpA by placing / not placing themselves in the condition of having useful information on the quality of the business activity also from the point of view ethical-social ". . Limits in internal consistency - In corporate identity Any inconsistencies within the corporate identity, for example between the reference values and the declared mission and / or policies, they should lead to an exception in the attestation. If it is to improve the representation of such consistency, or, if possible, aspects of inconsistency are detected marginal with respect to the overall identity system company, such situations will be subject to an improvement point. Exception: «This social report does not allow to find adequate elements of consistency between the values / la mission / ..., the declared strategies / policies and how much resulting as programs created and described in section the '' Social report ''. Consider the commitments assumed towards the stakeholders, as stated in the paragraph. and the . . ., 200X relevance / marginal . relevance social report of thisprovides consistency, / we believe that the Machine Translated by Google 52 Guidelines for the revision of the social report does not provide stakeholders with an exhaustive overall picture of XXX SpA's performance by setting / not placing them in the conditions of having useful information on the quality of the company activity also under the ethical-social profile ". - In the other sections of the document The concept of internal coherence illustrated above with reference to corporate identity must be applied to the entire document. In the Social Report the GBS foresees that it emerges in the consistency of the policy lines and of the expected results with the reference values and with the mission. Among the essential elements there is an indication of the commitments assumptions and the objectives that must necessarily be consistent with what is expressed in the corporate identity. The inclusion of the process of detecting expectations legitimate interests and the degree of satisfaction / consent of the stake holders, responds inter alia to objectives of consistency with the declared values (value of the person; value of correctness negotiation). The same data contained in the section dedicated to the calculation and to the distribution of added value they will have to, when and where possible, express this consistency. Therefore, if, in the opinion of the auditor, there are significant shortcomings with respect to these internal consistency objectives of the social report the attestation will contain the relative exception. In the event that these deficiencies are not significant, yes may propose a point of improvement of the document and / or the process. . Significant shortcomings in the Production and distribution of added value section In general, all exceptions should be included as exceptions in the statement on the social report Machine Translated by Google Structure and content of the document 53 contained in the report of the auditing firm on the separate and consolidated financial statements, highlighting the impact that the exception itself has on the production and distribution of added value. Then there could be the case of a material error in the phase of hiring and re-processing information e economic-financial data from the financial statements and consolidated financial statements. Again, if it is not possible to intervene before the final drafting and publication of the social report, the attestation will contain the relative exception for inaccuracy. An exception for document inaccuracy might theoretically also refer to the case of a significant error in the process of calculating the added value and / or its value distribution among stakeholders, which could not be corrected before the publication of the document. «This social report has been drawn up having as a reference the annual and consolidated financial statements approved by the shareholders' meeting of. . The report . . . of the auditing firm that accompanied the financial statements financial year and consolidated has highlighted exceptions whose impact on '' Production of added value '' and '' Distribution of added value '' is as follows: ....... . Considering the relevance of these exceptions, . we believe that the 200X social report does not provide the stakeholders with an exhaustive overall picture of XXX SpA's performance as they do not place them in the conditions of having correct quantitative information on the wealth produced with reference to the stakeholders who participate in its distribution ». «In the section '' Production and distribution of added value '' the wealth produced is represented by the company and the recipients to whom it is distributed. In the chapter ''. . . . '' the calculation of the added value . Machine Translated by Google 54 Guidelines for the revision of the social report education / the distribution of the added value produced was / a carried out considering that .... ./ not considering that . . and, consequently, the same is overrated / . . . underrated for. .... EUR. Given the relevance of such exceptions, we believe that the 200X social report does not provides stakeholders with a comprehensive overview of the performances of XXX SpA not placing the same in the conditions of having quantitative information corrected on the wealth produced with reference to the stake holders who participate in its distribution ". . Lack in the content of the Social Report A first aspect concerns the complete and correct identification of the stakeholders, as mentioned above mind. Secondly, as previously specified, the GBS also provides for some elements for this section essential that must concern all stakeholders, both of the contents common to all stakeholders (Main assumptions by stakeholder category), including for example the policies and the expected results, in line with the values and the declared mission, litigation and litigation. It is therefore considered that the absence of one of the essential elements or of one of the main assumptions, even for just one stakeholders, should be a reason for expression of judgment with exception if this absence corresponds to the lack of reporting of an essential element existing in the corporate reality. As regards all other information provided (content recommended in the GBS model) in case one or more of them are absent or incomplete or incorrect, it will be the auditor to have to evaluate the significance of the relief with respect to the social report as a whole and then decide whether to express oneself, and whether to express oneself with an exception or with a point of improvement. Machine Translated by Google Structure and content of the document 55 The paragraph can be defined by elaborating and adapting the text indicated for the exception «Not correct / incomplete identification of stakeholders ". 4.3. Certification with indications for improvement Some aspects are summarized below (inaccuracy, incompleteness and other shortcomings found in the financial statements social) that may give rise to the inclusion of suggestions / points for improvement in the attestation: - formalization of the supplementary sections (Survey the degree of consensus of stakeholders and improvement objectives) envisaged by the GBS model; - improvement of information on the process of detecting the degree of consensus and on the objectives for improvement; - only partial start of the detection process degree of consent; - refinement of the identification of stakeholders, with reference to specific sectors; - representation of internal consistency that can be improved; - marginal aspects of inconsistency in the social report; - deficiencies or insignificant inaccuracies in the contents recommended. Normally these points should be the subject of comment by the board of directors in the social report and should be part of the objectives of improving the process of drafting the document. Example: «Some areas of attention emerge from the work carried out which, being reflected in the structure / information included in the Financial Statements, they can be addressed in future years and properly developed. In particular we identify: Machine Translated by Google 56 Guidelines for the revision of the social report 1. the clarification of a more complete set of indicators of social / environmental performance that allow the link between management strategy, objectives and results on the . . of the social relationship; . . areas. 2. the development of dialogue with stakeholders that strengthens the participatory aspects of existing relationships with same; 3. an in-depth analysis in identifying the stakeholders, which better reflects the characteristics of the sector in which XXX SpA operates and that makes suitable benchmark data available; 4. ... 4.4. Attestation with information recall The references to information follow the paragraph of the judgment and refer to aspects of an exceptional nature and / or particular relevance which, although adequately exposed e commented by the Board of Directors in the financial statements given the importance for the readers of the document, they are recalled by the auditor in a specific paragraph of the attestation. Some situations that should lead to a disclosure recall are reported below. . Failure to start the process of detecting the degree of stakeholder consensus. The prerequisites so that we can speak of information recall and not of exception are: - first year of preparation of the social report; - comment in the social report, and inclusion in the process and document improvement objectives. . Failure to achieve a significant improvement goal. Machine Translated by Google Structure and content of the document 57 Consider, for example, the worsening of significant indices of environmental impact in the face of an improvement objective expressed in the social report of the previous year, or again failure to initiate the process of detecting the degree of consent from the second year of preparation of the social report. In the first case we are faced with a situation of hands-on incoherence with respect to what is declared as values, missions, strategies and then declined in the objectives of improvement. In the second case it is a significant deficiency of the process which is then reflected in the document. So that we can limit ourselves to a reference to information in both cases, the situation must be described in in a complete and transparent manner in the relevant sections, that is given ample evidence of exceptional and unpredictable causes which resulted in such situations and which goals did not achieved are subject to specific and more significant actions that must be commented on among the objectives of improvement of subsequent management. . Lack of essential elements or contents mandates in the GBS model for individual stakeholders. In the hypothesis of a consolidated social report of a group significant impediments could occur, such as to make it impossible or excessively burdensome to obtain certain data / information, fundamental in the GBS model, relating to relations with individual group stakeholders. In this case you should first check that the the significance of such limitations does not even make it impossible the expression of an opinion on the social report. In the event that the problem is limited to information relating to a single stakeholder or in any case it is not such as to compromise the information capacity of the social balance sheet as a whole, the board of directors will have to likewise give complete evidence of it in the relevant sections and express the overcoming of as an improvement objective such a limit. Machine Translated by Google 58 Guidelines for the revision of the social report Machine Translated by Google Appendix 59 Part II APPENDIX Machine Translated by Google 60 Guidelines for the revision of the social report Machine Translated by Google Appendix 61 Machine Translated by Google 62 Guidelines for the revision of the social report