KPMG India has unveiled its latest survey report, State of Impact Reporting in India – Road to Readiness, providing a comprehensive analysis of the impact assessment practices of Corporate Social Responsibility (CSR) projects by leading companies in India.
This report marks a significant milestone in understanding how CSR initiatives are being measured and communicated, ten years after the enactment of the Companies Act for CSR.
Key Findings:
- Increasing Compliance: Out of the Nifty 250 companies, 46% (114 companies) are eligible to undertake impact assessment studies. Among these, 80% (91 companies) have disclosed information in their annual reports, with 45% (51 companies) providing detailed impact assessment studies.
- Stakeholder Inclusion: The report highlights that only 35% of companies consider primary, secondary, and institutional stakeholders in their impact assessment studies. Meanwhile, 53% focus on primary and institutional stakeholders, and 29% consider only primary beneficiaries.
- Methodological Transparency: While 67% of companies disclosed the sample size used for their impact assessment studies, only 18% reported the statistical methods employed for finalizing the sampling.
- Holistic Reporting: 55% of companies included recommendations on optimizing impact, 61% adopted mixed research methodologies, and 59% mentioned demographic profiling in their reports.
“We are at a critical juncture where businesses can significantly contribute to sustainable development. The insights from this report emphasize the need for a data-driven approach in CSR. By adopting robust impact assessment frameworks, companies can ensure their initiatives yield measurable and meaningful outcomes,” said Jignesh Thakkar, Partner and Head – Social & CSR, KPMG in India.
Report Highlights:
- Evolution of CSR: The report traces the journey of CSR in India, showcasing the transformation from profit-sharing to creating sustainable positive changes in communities.
- Impact Assessment Compliance: The introduction of mandatory impact assessments has led to a more outcome-focused approach, with 45% of eligible companies fully disclosing their impact studies.
- Future Directions: The report calls for greater incorporation of monitoring and evaluation frameworks in CSR program implementation to achieve more holistic and impactful results.
