Assessing impact of Corporate Social Responsibility programmes

The construction company, a Public Sector Unit is in the business of engineering, civil, mechanical products aiming to provide services through a range of modern construction equipment with a high degree of expertise. The company had been implementing several CSR programmes as per the DPE guideline until the enactment of the Companies Act 2013 section 135.

Before the Act came into force, all the Central Public Sector Enterprises (CPSE) were following the CSR guidelines issued by the Director of the Ministry of Heavy Industries and Public Enterprises since 2010 wherein all the CPSE were supposed to allocate 1%-5% of the PAT of the previous year for Corporate Social Responsibility (CSR) and sustainability activities. CPSE Guidelines (Revised) on CSR and sustainability became mandatory with effect from 1stApril 2013. However, w.e.f 1st April 2014, CSR under Section 135 of Companies Act 2013 became applicable to all the CPSEs & the DPE guidelines were superseded by the same.

The projects undertaken by the company included skill development programmes, construction of computer labs cum vocational training centre for girls, construction & renovation of toilet blocks in schools under Swach Bharat Abhiyan, rainwater harvesting underwater management programme & training on CSR & sustainability.

The objective of the programmes was to address the basic needs and improving the quality of life of the deprived, underprivileged, neglected and weaker sections of the society. As per the CSR strategy, the focuses of CSR programmes were livelihood, sanitation & hygiene and environment.

The company had been implementing the programmes since the last few years but were unable to measure the benefit of the programmes on the beneficiaries. In absence of the same, the company was unable to ascertain the effectiveness of the programmes & the achievement of its CSR goals as per its CSR strategy.