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CS Professional · CSR and Social Governance · Impact of CSR

Kaveri Power Ltd plants mangroves along a coast as a CSR project. The ecological benefits, such as coastal protection and improved fish breeding, become visible only after 8 to 10 years, but the company's impact assessment is done at the end of year 2. Which limitation of impact measurement does this best illustrate?

This illustrates the time-lag limitation. Environmental benefits like coastal protection and fish breeding appear after many years, so an assessment at the end of year two will understate the true impact. Measurement timing must match the period over which the outcomes naturally develop.

  1. ATime lag between intervention and outcomes, which makes short-term assessment understate real impactCorrect
  2. BOver-reliance on audited financial statements
  3. CMandatory spending being fixed at a percentage of profit
  4. DLack of a registered implementing agency

Explanation

Many CSR outcomes, especially environmental and educational ones, materialise over long periods. An assessment done too early captures little change and so understates impact. The facts say nothing about financial statements, spending percentage or agency registration, so those options do not fit.

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