Corporate Social Responsibility (CSR) has evolved from a being just bureaucratic administrative requirement from assessing the actual merit of the strategic imperative to a moral imperative. After the post covid, the measuring metrics of CSR have been changed, some of the main drivers for value creation are carbon footprint, diversity, ethical conduct, & risk mitigation.

Consumers are more aware of the company's social & environmental impact. And the usual metrics that companies were using or performing to measure CSR are not enough. And by understanding this predicament, companies have modified their CSR activity by formulating a strong CSR strategy, it must be good for the world and good for business.

But the measurement is often mired in a rut. Traditional measures, like volunteer hours or charitable donations, are important but only part of the story. So how can companies redefine CSR impact and move beyond the usual metrics?

Shifting the Focus: From Outputs to Outcomes

Earlier most of the metrics companies used to do were only to be a part of CSR that they were doing, not caring whether it is leaving an impact or not. It was just for name’s sake that ok; we contribute to the CSR part. Before traditional metrics focused on outputs like Donated funds, volunteer hours, or trees planted are all outputs. But what truly matters is the outcome – the actual social or environmental change created by those activities.

Take an example, for instance, a company that donates money to build a school in a developing country. The number of dollars donated is an output. The outcome, however, is the long-term impact on the lives of children who receive an education.

Innovative Measurement Strategies

Here are some innovative ways companies can measure their CSR impact, moving beyond the traditional:

Add Expert Insights

“The most impactful Corporate Social Responsibility (CSR) initiatives are those that seamlessly integrate social and environmental goals into a company’s core business strategy,” says Dr. Upendra Nagaich, Chief Executive Officer at SPER Social, a foremost expert in CSR and sustainability. “Rather than treating CSR as an isolated function, successful organizations embed it throughout their operations, creating shared value for both society and their bottom line.” The statement by Dr. Nagaich is truly something to think about.

The Road Ahead

A change in thinking is required for redefining how CSR result is measured. It is about going beyond short-term outputs towards long-term outcomes, considering social and environmental factors while engaging with stakeholders. Innovative companies embrace novel strategies of measurement to tell a more comprehensive story of the CSR efforts, not only showing the commitment to positive change, but also attracting stakeholders that share the same values and, in turn, result in a more sustainable and impactful future for both the company and society at large.