Impact Assessment of csr projects
Impact assessment of Corporate Social Responsibility (CSR) projects is a process of evaluating the effectiveness and impact of a company’s CSR initiatives, programs, and activities on the communities and stakeholders they serve. The purpose of impact assessment is to understand the short- and long-term effects of CSR projects and to identify areas for improvement and optimization.
Monitoring of CSR activities, its reporting and impact assessment is mandatory as per the Companies (Company Social Responsibility Policy) Act and the Rules. Also, it is the responsibility of the Company to monitor the funds of the Company which are to be utilized as per the CSR Policy of the Company.
The impact assessment process typically includes the following steps:
- Setting objectives and goals: Identifying what the company hopes to achieve through its CSR projects, and establishing clear and measurable goals and objectives.
- Planning and design: Developing a plan for how the CSR project will be implemented, including the selection of participants, the development of activities and interventions, and the identification of resources required.
- Data collection: Collecting data before, during, and after the implementation of the CSR project to measure its impact and effectiveness. This may include surveys, interviews, focus groups, and other research methods.
- Analysis and interpretation: Analyzing the data collected and interpreting the results to understand the impact of the CSR project on the communities and stakeholders it serves.
- Reporting and dissemination: Presenting the results of the impact assessment in a clear and concise manner, and sharing the findings with relevant stakeholders, including the company’s management, employees, and the communities it serves.
- Continuous improvement: Using the results of the impact assessment to make improvements to the CSR project and to identify areas for optimization and growth.
Benefits of Impact assessment of Corporate Social Responsibility (CSR) projects
Impact assessment is a process used to identify and evaluate the effects of your CSR project. It involves assessing the social, environmental, and economic impact of your business or organization on different stakeholders.
Here are some of the benefits of impact assessment of Corporate Social Responsibility (CSR) projects:
- It helps you understand how your CSR project will affect society and the environment.
- It helps you identify your target audience and their needs.
- It helps you determine where to invest resources so that they can be effective in reducing negative externalities.
- It helps you develop strategies for managing social and environmental risks so that they do not create any harmful impacts on communities or individuals.
Mandatory Impact Assessment of CSR Projects
The ‘Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022’ under the Companies Act, 2013, has clearly outlined Mandatory Impact Assessment of CSR Projects for certain class of companies and certain project types. As per the amendments:
- Every company having average CSR obligation of INR 10 Crore or more in the three immediately preceding financial years, shall undertake impact assessment.
- Companies that have CSR projects having outlays of INR 1 Crore or more and which have been completed not less than 1 year before undertaking impact study.
- Companies undertaking impact assessment may book the expenditure towards Corporate Social Responsibility for that financial year, which shall not exceed 2% percent of the total CSR expenditure for that financial year or INR 50 Lakh, whichever is higher.
- Impact Assessment shall undertake through an Independent Agency.
- The CSR impact assessment report will be annexed to the annual report on CSR.
Ingenyria provides an impact assessment of Corporate Social Responsibility (CSR) projects. We help businesses to measure the impact of their CSR activities and to optimize the performance of their social responsibility programs.
Our services include:
- Impact Assessment– Impact Assessment of CSR Projects undertaken by the company considering parameters of social, economic and environmental impacts.
- Fund Utilization Audit– Analyse the CSR approved fund completely utilized in the CSR project undertaken by the company.
- Due-Diligence– Due-diligence of NGO, vendors, proposals etc. for the CSR project undertaken by the company, to ensure that the company work with only credible organization complying with all operation, legal & fiscal compliances as per government of India mandate.
- Project Monitoring and Evaluation– can continuous monitoring the CSR project undertaken by the company from start to end evaluation.