Best Practices for implementing CSR Impact assessments in India

“Giving back to society” is what we often hear these days. With HNIs (High Net-worth Individuals) heavily involved in Philanthropy and with Corporate Social Responsibility (CSR) coming into effect, Corporations had an obligation to spend 2 per cent of their net profit on CSR activities. Such a mandate made these corporations start investing in education, health, environment and livelihood projects. With continued investments year on year, these projects expand in their outreach or initiate newer programs under the thematic areas. But a few best practices that are adopted throughout the sector can help elevate the program.

Best practices observed in the sector

The best practices observed in the sector are discussed below:

• Needs assessment and other assessments: A needs assessment is essential before starting any new program. The needs assessment provides direction to the program design, and accordingly, the program gets designed as per the needs of the community. But assessments for development programs do not stop here, after finalising the program design, a baseline is to be implemented, to set the benchmarks before kick-starting the project and evaluating the program regularly at different frequencies, such as mid of the project and end of the project. These assessments help in measuring the progress and impact of the project. More importantly, organisations that are consistent in doing such assessments also have a dedicated earmarked fund budgeted for assessments at regular intervals.

• Program design with LFA/TOC: Program design merely does not translate into a guiding document for implementers. But preparing documents such as a Logical Framework that helps establish a linkage between activities/inputs with outputs and outcomes, along with assumptions and a pictorial representation of cause and effect of program activities through a theory of change. Most importantly, linking programs with SDGs (Sustainable Development Goals). Such documents provide a road map to implementers for their program and ultimately inform the program on the specific activities, their mode of reporting, and the documents to be maintained. The presence of a roadmap in the form of LFA/TOC will not only guide the program but also give direction to program implementers on what their focus is for the program.

• Use of standard frameworks: Standard frameworks for the monitoring & evaluation are essential for the benefit of the program. Monitoring frameworks for the program, followed using standard methodology for assessments such as mixed method research, SROI (Social Return on Investment), Difference in Difference (Quasi Experimental Design), Most Significant Change Technique, and OECD-DAC criteria (Organization for Economic Cooperation and Development – Development Assisted Criteria) are some of the standard frameworks utilised in Impact Assessments to report the Impact of a program. This also includes hiring a third-party evaluator to assess the program, to ensure unbiased reporting of the program’s outcome/impact.

A few examples taken from corporations implementing their CSR projects are described below:

Cipla Pharmaceutical – CSR

The CSR program of CIPLA focuses on various healthcare initiatives, including palliative care, respiratory support, and community health. The major aim of these initiatives is to improve the health outcomes of those under the intervention.

Impact assessments are found to be effective only when they are guided by standard frameworks. The assessment used the OECD-DAC criteria, which enabled them to refine their strategies and ensure effective resource utilisation. The emphasis on rigorous assessment can maximise social benefits through utilising standard frameworks and encourage sustainable development.

Mahindra Group – CSR (Project Nanhi Kali)

Project Nanhi Kali is a part of the Mahindra Group’s CSR initiative, focused on enhancing educational opportunities for underprivileged girl children. It aims at increasing academic performance, school regularity, which in turn will help move through grades and aim for enrolling and completing higher education

While specific impact assessment reports are not always publicly detailed, the program aims to educate 1 million girls by 2026, indicating clear, measurable objectives and an ongoing focus on tracking progress towards this goal. Their impact is measured through metrics like increased attendance and academic performance.

What will happen if you adopt these best practices?

Adopting these best practices will help you achieve the following

• The program will have a direction in terms of its target beneficiaries, its needs, and the interlinkages of what this program intends to achieve. Along with the direction, a comprehensive roadmap that navigates program implementers and their funders on the risks and assumptions of achieving their program goals.

• Assessments will benchmark the status against which the progress will be measured at different frequencies of program implementation. Such assessments will help the CSRs in measuring the outcome/impact of the program, followed by making it a practice to earmark a dedicated fund for assessments and the M&E unit at their organisation.

• CSR compliance would become easier, along with that, the use of standard frameworks such as SROI can suggest an actual return on investment through the program. Employing such standard frameworks can help these organisations learn to what extent they should keep investing in a program.

Conclusion

What remains a challenge in the sector is the allocation of adequate resources, such as earmarking of funds for impact assessments. Organisations have a mandate to submit impact assessment reports as their regular compliance, but what gets neglected here is due to inadequate resources, the criterion for a minimum representative sample is ignored because of which means standard frameworks are not often used in impact assessments. Such negligence is the result of an absurd measurement of the program’s impact.