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Sundaram Textiles Ltd spent Rs 40 lakh on a village sanitation project and reported only that 12 toilet blocks were built and 3,000 people attended awareness camps. The CSR committee wants to know whether open defecation and related illness actually fell in the village. Which limitation of its current reporting does this expose?

The reporting covers outputs and activities, such as toilets built and attendance, not outcomes or impact. Impact is the actual change in beneficiaries' lives, like reduced illness, and measuring it needs outcome indicators compared with a baseline. Counting deliverables alone cannot show whether the project achieved its social objective.

  1. AIt reports outputs and activities rather than outcomes and impactCorrect
  2. BIt reports too many financial details about the amount spent
  3. CIt uses a baseline survey that is too detailed
  4. DIt has measured impact over too long a period

Explanation

Toilet blocks built and camp attendance are outputs. Impact means the change in the lives of beneficiaries, such as lower illness, which needs outcome indicators and comparison with a baseline. The company's reporting stops at outputs, so it cannot show real change.

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