In the post MFA (Multi-fiber Agreement) context, MNCs sourcing from developing countries like India are increasingly committing themselves to Social Responsibility and Codes of Conduct. Social audits have become the dominant mechanism for implementing codes of conduct. This study collects information about social audits done by European and US retailers in the Indian workplaces. It also looks into the impact of social audit on the labour situation in those workplaces. Thus, this study examines the activities undertaken in relation to social auditing practices in India and offers a critical perspective and recommendations to ensure meaningful and sustainable processes that will generate positive improvements. The research was carried out in the workplaces producing for Wal-Mart, Carrefour, Gap, Quelle and Nexx in the Delhi and Punjab region.