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CS Professional · CSR and Social Governance · Social Impact Assessment and CSR Audit

Kaveri Industries Ltd plans a CSR school-building project in a tribal block. Before starting, its Board asks for an assessment that studies the likely effects on local families, including possible displacement of grazing land. Which feature of social impact assessment does this request best illustrate?

The request illustrates the anticipatory nature of social impact assessment: it examines likely social consequences, including unintended ones such as loss of grazing land, before implementation so that mitigation can be planned. It differs from a post-spending audit or a check on committee composition.

  1. ALooking only at the financial return to the company
  2. BAnticipating social consequences before implementation, including unintended ones, so mitigation can be plannedCorrect
  3. CAuditing the spending after the financial year ends
  4. DVerifying the composition of the CSR Committee

Explanation

Assessment of likely effects before a project begins, including unintended effects such as loss of grazing land, is the forward-looking nature of social impact assessment. Post-year spending review is an audit function, and committee composition under section 135(1) is a separate matter.

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