Measuring CSR Impact: As Important As For NGOs

Feb 16, 2021 | by Yosy Christy Natalia

Importance of Measuring CSR Impact

One might think that impact measurement is only directly related to NGOs. However, it is a concept that is relevant for any organization that engages in any type of impact work, no matter the size, shape, or type. Even corporations could benefit from impact measurement to understand the impact of their CSR projects, which could either improve them or help the organization understand the ROI on those projects.

In the following article, we look at how impact measurement can affect CSR and how this will translate to improving CSR for organizations. 

Accurate Data Collection

If you are running your CSR projects by going on a hunch, you might not get the best results or even find that you have trouble justifying the resources spent to your senior management. Solid impact measurement methodology & tools could help you get more structured & reliable data. Once you have improved data collection methods, you can use the data to get more understanding about the projects; underlying assumptions, execution, results & ROI. 

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Improves Brand Image

Being socially responsible & sustainable is vital in the new age and most companies want to have a positive public perception linked to them. The younger generations; Gen Z & Millennials are not satisfied by just PR claims, but want to see the real impact created. By showing the impact of your CSR & Sustainability projects backed by ‘evidence-based reporting’, you can improve the concept people have of your brand. Social impact measurement can help improve the CSR projects and improve the public perception of your brand even more.

Improved CSR Productivity

When you don’t monitor your progress, it is easy for people to assume results and become complacent. However, impact measurement will constantly keep you in the loop on the latest updates of a project. Once the workforce understands the current stream of data, it will keep them on their toes and they should be more productive.

Creates More Opportunities

While CSR will create more opportunities for the community, you will want to create more opportunities for yourself. Impact measurement tools will allow you to gather as much data as possible on the community and the local area. The information can be used to create more viable opportunities for your CSR projects and sometimes also the core business.

More Senior Management support

One of the biggest challenges faced by CSR teams is convincing senior management of the value of the CSR or Sustainability projects, showing them the ROI for the business and effects on the brand value. Showing them clear data, the SROI of your projects can help you get more support from your senior management. 

Increased Revenue

Increased Revenue is one of the main goals of any organization. However, impact measurement will help you win a loyal customer base, who associate with your brand because of the positive impact created by you. This loyal base will also translate into more revenue for your business eventually. 

Better Community Adaptations

Many companies set themselves up for failure by trying to change the culture and the ideals of the community. One of the main reasons for this is that they do not know the culture of the community. Impact measurement will allow you to use the data and rather than fighting the community on a cultural level, you can work with them.

Better Economic Stimulation

Much like giving a baby something they do not want and not alleviating the issue, many companies are not focusing on the problems and addressing the wrong things. It is important to address the right aspects of the economy and give the community what they might need. CSR works to do this when used with measuring impact.


The customer & employee base is changing & is much more demanding than the previous generations, especially when it comes to seeing sustainability & positive impact from brands. CSR & companies need to adapt to this change if they want to build trust with their customers & uplift their brand value.

Read also:

M&E For CSR Programs: The Best M&E For Your CSR Projects

Challenges Of Running A CSR Program

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