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CS Professional · CSR and Social Governance · Impact of CSR

A company runs a community programme on women's empowerment and finds it hard to put a rupee figure on improved dignity and decision-making power among participants. Which limitation of measuring CSR impact is this?

This is the difficulty of quantifying intangible and qualitative outcomes. Improvements in dignity or decision-making power cannot be easily converted to rupee values, so evaluators rely on proxy indicators, surveys or social return methods, which carry their own subjectivity and limits.

  1. ADifficulty in quantifying intangible and qualitative outcomesCorrect
  2. BAbsence of a requirement to spend on CSR
  3. CUnavailability of a board-approved annual action plan
  4. DExcess reliance on audited accounts

Explanation

Outcomes like dignity or empowerment are intangible and qualitative, so they resist simple numerical or monetary measurement. Evaluators use proxy indicators, surveys and methods such as SROI with caution. This is different from the compliance matters listed in the other options.

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