There’s no law yet, but there will come a time when companies will be required to submit an annual report detailing ways in which they have been good corporate citizens.

Many companies are already including in their reports details of their socially responsible activities and chronicling the positive impact those acts have had on the communities in which they operate. In 2005, one-third of America’s top 100 companies voluntarily reported on their own progress on these issues, according to accounting firm KPMG.

That’s good, but only one out of 100 invited an outside auditor to verify the company’s reports. In fact, in that regard the United States is lagging far behind Britain, where 71% of top companies issue social progress reports—half of those verified by an independent monitor.

Does it matter? Yes. It matters to consumers, who repeatedly report to surveys and polls that they make purchase decisions based on a company’s reputation and how responsibly the firm behaves at home and abroad. That’s particularly true when it comes to buying big-ticket items. It also matters to investors. That concern has given rise to an entire industry devoted to monitoring and reporting on corporate social responsibility.

Accounting firms see social auditing as a business-development opportunity. Many investors, however, see a conflict of interest in having financial auditors also conduct social audits. Investors are more likely to favor audits by organizations such as TransFair USA, which audits food growing and processing companies for compliance with labor practices and environmental impact.

Now there are also accrediting organizations whose business it is to verify the reliability of independent auditors. Social Accountability International, for example, is an accrediting agency that certifies the monitors of outsourced makers of toys, apparel and other products. Firms that work with SAI-accredited monitors can earn SAI’s seal of approval.

Over the next five years, companies that do not carry a seal of approval from a credible organization will be at a disadvantage in the marketplace.