How to Implement a Successful CSR Strategy

An organisation that implements Corporate Social Responsibility (CSR) aims to make the society better through ethical business methods while preserving the viability of its business model. A robust CSR strategy builds a business case for how your chosen CSR efforts may fit into your overall plan for business success, ensuring that your project stays on track and meets each KPI along the way. In order to design a successful CSR strategy, it is important to merge a company’s social responsibility with business-related thinking. A well-thought-out CSR initiative can boost an organisation’s profits and impact its reputation in many ways.

A realistic long-term CSR strategy will have long-lasting results that can bring multiple benefits to a business. A successful CSR strategy needs to be designed and structured well in every way.

Planning

i. The Problem

Identifying a cause is one of the initial and crucial steps in planning a CSR initiative. The problem to be addressed needs to be in line with the values of the organisation and something that the employees feel compelled to invest their time and energy in. The planning stage should ideally involve discussions among employees and managers. Feedback and insights from people from diverse backgrounds are essential for a different perspective.

ii. The roadmap

Conducting extensive research and analysing the work of organisations who have done similar work is a good place to start. Based on the study, a plan needs to be crafted taking into consideration the possible roadblocks that may arise on the way.

Designing

i. Analysis

SWOT analysis is the first step in understanding the strengths, weaknesses, opportunities and threats. The PESTLE framework helps in identifying the political, economic, social, technological, legal and environmental issues. Thorough assessments and analyses are necessary for any CSR activity. No project remains sustainable without assessing the needs of the community. Hence need assessment is inevitable. Surveys conducted on the ground give an accurate understanding of the cause.

ii. Goal setting

An effective CSR initiative needs to have goals that are SMART (Specific, Measurable, Achievable, Realistic and Time-related). It is important to be honest with all the stakeholders involved. The cause should support the values held by the organisation and the benefits it would bring to society when implemented.

Execution

i. Campaign Launch

When all the procedures are taken into account properly, the next stage is implementation. The launch should be effectively communicated to the employees, investors, partners, local communities, press and customers.

ii. Monitoring and maintenance

The maintenance of the campaign involves considering the goals set and even the smallest KPIs to monitor the progress of the project.

Impact Assessment and its importance

Since the required law took effect in FY 2015, Indian corporations have invested more than 1 trillion INR in CSR initiatives. A huge investment like that calls for accountability and transparency, which is why CSR efforts need to have their impact evaluated. By integrating the board and leadership teams, these assessments serve to increase the quality of CSR projects in addition to enabling greater transparency in the use of the CSR budget. Impact assessments assist investors and other stakeholders in learning more about the advantages and disadvantages of their actions, promoting corporate social responsibility. Beneficiaries, implementing partners, project stakeholders, local government representatives, and others are included in the quantitative and qualitative impact assessment measuring process.

The CSR Amendments Rule 2021 under the Companies Act 2013 outlines mandatory impact assessment for

- Companies with an average CSR obligation of Rs. 10 crore or more in the preceding three financial years.

- Companies having CSR projects worth Rs. 1 crore or more and that which has been completed not less than a year before taking the impact assessment.

Companies can budget a maximum of 5% of the total spending or Rs. 50 lakhs for impact assessment, whichever is lesser.

Best practices for a successful CSR strategy

In short, a successful CSR strategy should ideally involve a lot of research and planning. Setting realistic and sustainable goals that are aligned with the company’s values is of prime importance. Effective communication among all the people involved will give a clearer picture of the challenges that the planning team may have overlooked. Various assessments and surveys help in evaluating the sustainability and impact of the project. A good CSR plan has a lot more than just the data, plan and processes that benefit the business and the cause it is helping in the long run.

Getting an external agency for end-to-end planning and implementation of CSR projects will make the business’s CSR objectives easier to achieve. Walchand Plus has expertise in creating the right strategy that aligns with the business’s values and CSR goals that businesses wish to achieve. With baseline studies, need analysis and the use of the right tools, Walchand Plus’s team of experts conduct thorough research and advises clients about the required competencies. The findings obtained as part of the social audit are systematically documented in the sustainability report. The social impact of planned projects will be critically evaluated for unforeseen challenges and assessed as a critical prerequisite. The dedicated volunteers and resources working on the project will be provided with professional training to make the project a long-lasting success. Get in touch with Walchand Plus today for 360-degree assistance in making your CSR activities impactful and sustainable.