Social Impact Assessor

A Social Impact Assessor is to an Annual Impact Report roughly what a statutory auditor is to a balance sheet: the independent professional who checks whether what the organisation claims is true.

SEBI created this class of professional for the Social Stock Exchange. The SEBI ICDR Regulations define a social impact assessor as "an individual registered with a self-regulatory organization under the Institute of Chartered Accountants of India or such other agency, as may be specified by SEBI, who has qualified a certification program conducted by National Institute of Securities Market and holds a valid certificate."

Three conditions, all required: it is an individual; they are registered with an SRO; and they have passed the NISM certification and hold a valid certificate. This exam is that certification.

Social Impact Assessors perform independent verification of impact reporting. Chapter 2 is explicit: social impact assessment shall be mandatory for entities on SSE.

Who can be one (Chapter 5, 5.3.3 and Table 5.1):

1. Chartered Accountant (CA)
2. Company Secretary (CS)
3. Cost and Management Accountant (CMA)
4. Post-graduate from a UGC-recognised university with at least 3 years of development-sector experience
5. Graduate from a UGC-recognised university with at least 6 years of development-sector experience
6. Any other person with suitable accreditations and at least 6 years of development-sector experience

Registration. Chapter 2 names three SROs for Social Impact Assessors:

• Institute of Social Auditors of India (ISAI) — a not-for-profit Section 8 company under the aegis of ICAI
• ICMAI Social Auditors Organization (ICMAI SAO) — under the Institute of Cost Accountants of India
• ICSI Institute of Social Auditors (ICSI ISA) — under the Institute of Company Secretaries of India

Empanelment criteria (5.3.5): experience in assuring non-financial information, with social-sector experience weighted more; for firms, the number of partners or employees meeting the criteria; and disciplinary cases or sanctions, weighted negatively.

Code of conduct (5.3.2): non-judgmental attitude, integrity, objectivity, empathy, cultural sensitivity, transparency, constructive feedback, professionalism. The seven principles of impact assessment (5.2), drawn from ISO 19011, are integrity, fair presentation, due professional care, confidentiality, independence, evidence-based approach and risk-based approach.

In the engagement. The assessor is one of three parties, with the responsible party and the intended users. The assessor remains primarily responsible for the report even when field agencies or experts do part of the work, and should not refer to an expert's work in the report unless law or regulation requires it.

Illustrative candidates tested against the workbook's eligibility list.

Five people want to sign SSE impact assessments.

The two further gates everyone must clear:

1. Pass the NISM Series XXIII certification and hold a valid certificate.
2. Register with an SRO — ISAI, ICMAI SAO or ICSI ISA.

Aditi, a CA, is not an SIA the day she qualifies as a CA. She becomes one only after clearing NISM and registering with an SRO. Farzana becomes eligible in one more year. Her 5 years is enough for nothing on the list: it is too short for a graduate, and she lacks the post-graduate degree that would make 3 years enough.

Chapter 2 (2.2.3, 2.2.6) defines the assessor and names the SROs. Chapter 5 (10%) covers the principles, code of conduct, certification, competencies, empanelment, scope of work and the whole engagement. Chapter 8's sample report shows the assessor quoting an SRO registration number and confirming the SRO's code of conduct. Expect eligibility questions (3 years vs 6 years), the three-part definition, the SRO names, the ISO 19011 principles, and the three-party relationship.

• PG needs 3 years; graduate needs 6 years; other accredited persons need 6 years. CA, CS and CMA need none.
• A Social Impact Assessor is an individual. A firm that employs assessors is a Social Impact Assessment Organisation.
• Registration is with an SRO, certification is by NISM. ICAI does not certify; NISM does not register.
• The workbook names the SRO three slightly different ways. The ICDR definition says "an SRO under ICAI or such other agency as SEBI specifies". Chapter 2 names three SROs (ISAI, ICMAI SAO, ICSI ISA). Chapter 5 (5.3.3) says assessors register "with an SRO under the Institute of Social Auditors of India (ISAI)". ISAI is the ICAI SRO, and it is not the only one.
• Chapter 5 misspells NISM as "National Institution of Securities Market" in 5.9.1(a). Chapter 2 and 5.3.1 say "Institute". Same body.
• The seven principles come from ISO 19011, not ISO 26000. ISO 26000 is guidance on social responsibility, listed among the standards an assessor should know.
• The responsible party may not be the engaging party — a donor can engage the assessor.