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CS Professional · CSR and Social Governance · Impact of CSR

Veda Textiles Ltd, a company with an average net profit of Rs 80 crore, spends Rs 3 crore on a skill-training CSR project that runs for two years. Its CSR committee wants to know whether trainees' incomes actually rose because of the project, beyond the number trained. Which type of assessment best serves this purpose?

Impact assessment is the right tool because it measures the change in beneficiaries' income that can be attributed to the project. Counting trainees or reporting spend only shows outputs and utilisation, not whether the intervention actually improved lives.

  1. AOutput tracking of the number of trainees enrolled
  2. BImpact assessment measuring changes in beneficiaries' income attributable to the projectCorrect
  3. CStatutory audit of the company's financial statements
  4. DReporting only the amount spent against the prescribed CSR obligation

Explanation

Impact assessment looks at outcomes and changes caused by the intervention, such as income gains among trainees. Counting enrolments only measures outputs, and spending figures show financial utilisation, not change in beneficiaries' lives.

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