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CS Professional · CSR and Social Governance · Financial and Non-financial Reporting of Different Non-Corporate Entities

A partnership firm, Kiran & Sons, voluntarily runs a scholarship fund and wishes to publish an impact report. Which approach best keeps the report credible for stakeholders?

The report should disclose the baseline, the methodology and indicators used, and the shortfalls against targets. Balanced and verifiable disclosure, covering both achievements and gaps for a stated period, makes impact reporting credible, whereas selective stories or expenditure-only figures mislead stakeholders.

  1. ADisclose only the success stories and omit the beneficiaries who dropped out
  2. BReport the baseline, the methodology and indicators used, and also the shortfalls against targetsCorrect
  3. CReport only the amount spent, since impact cannot be measured
  4. DPublish figures without stating the period they relate to

Explanation

Credible impact reporting is balanced and verifiable: it states the starting baseline, how data was gathered, and where targets were missed. Selective reporting, expenditure-only reporting and undated figures all undermine reliability and comparability.

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