Reporting

Don't underestimate the significance of BT's quiet announcement that it will undergo a thorough-going audit of its relationships with all those having an interest in the business. Such social audits have been pioneered in the UK by ethical companies like TraidCraft and latterly by The Body Shop. Until now 'mainstream' companies may have thought that producing a glossy brochure describing their community involvement activities was enough. Not any more.

The social audit process tests performance against pre-set objectives, with assessment and independent verification. There is a world of difference between a company saying what a lot it does for the local community and asking that local community what it thinks - and publishing the answers. In other areas, the process also exposes the reality behind "our people are our greatest assets" and "we care for the environment" and "we nurture our suppliers through partnership sourcing".

The difficulty is that techniques are still in their infancy, as Kleinwort Benson will find in deciding which is an inclusive company. Some companies have made a good start. Reported above, GrandMet is one. BP is another. Now it is important that business schools get involved to help - as well as teaching tomorrow's managers about the new realities of corporate accountability.