Measuring Effectiveness of CSR Program: A Case Study of Tata Power Co. Ltd

Worldwide, Corporate bodies have been practicing Corporate Social Responsibility (CSR) by investing financial and non-financial resources. India Inc has demonstrated (with varying degrees of interest), its commitment to the development of the people and the environment. They have invested in the development of social capital in sectors including education, health, old age care, sports and culture etc. There is an increasing emphasis to measure the effectiveness of these CSR programs. This stems from an innate need among Corporate bodies to assure them that such investments lead to intended outcomes, in the process leading to agreed deliverables among the various partners including communities. The article goes on to raise the critical question whether there is any tool to measure the returns of CSR programs? How would a company ‘know’ if and whether its social investments result in happiness within a community, or if there is recognition of its efforts? Will social investments ensure visibility of the company in the local community? Are there universal benchmarks to measure happiness, recognition and visibility? The authors have designed a tool “CSR Program Effectiveness Index (CPEI)” to measure the Happiness of Community, Recognition of the Company and Visibility in the Company in the community. Indeed, there are very important questions, but more often without conclusive answers. This article probes into this very contentious and gray area and offers intellectually stimulating paradigms, a framework and tools.