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CS Professional · CSR and Social Governance · Impact of CSR

Himalaya Power Ltd funds a skill-training project whose real benefits, such as higher household incomes and confidence among trainees, appear five to seven years after training. The board wants a full impact report at the end of the first year. What limitation does this most illustrate?

The limitation is the time lag between intervention and outcomes. Benefits like higher incomes and confidence emerge years after training, so a first-year report captures only early outputs and cannot reflect true impact. Meaningful assessment needs longer-term tracking of beneficiaries beyond the immediate project period.

  1. ATime lag between the intervention and the emergence of measurable outcomesCorrect
  2. BLack of a CSR policy
  3. CImpossibility of any financial reporting
  4. DOverlap with the company's statutory audit

Explanation

Many social outcomes, like income gains or behavioural change, take years to materialise. A one-year assessment would capture only early outputs and understate or misstate true impact. This time lag is a recognised limitation, which is why longer-term tracking is needed.

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