KPMG says only 35% of Indian Firms Include Wider Stakeholders in CSR
- Muhammad Ahmad
- Dec 17, 2024
- 2 min read
In a decade of CSR mandates, Indian companies struggle with stakeholder inclusion in impact reporting
Impact assessment gaps highlight need for inclusivity in CSR practices
CSR impact assessments remain compliance-driven for most Indian companies.
Just 35% include diverse stakeholders—primary, secondary, and institutional—in their studies.
Reporting frameworks and transparency show progress but need uniform adoption.
A KPMG survey on CSR reporting by Nifty 250 companies revealed a significant lack of stakeholder inclusion in impact assessments. Despite mandates under the Companies Act, only 35% of the eligible companies included all key stakeholder groups in their evaluations, raising concerns about the effectiveness of CSR initiatives.
Stakeholder inclusivity is crucial for delivering meaningful social and environmental outcomes, as it ensures that the voices of all affected parties—beneficiaries, communities, and institutional partners—are represented. Current practices often prioritize primary beneficiaries, missing a holistic view of impact.
Technical Focus
Since 2021, impact assessments have been mandatory for CSR projects with allocations above ₹1 crore and companies with an average CSR obligation of ₹10 crore or more in the past three years. These assessments must detail the project’s effectiveness a year post-completion.
While 94% of firms disclose the frameworks used, 60.8% include forward-looking plans, and just 29% employ mixed-method research combining quantitative and qualitative tools. KPMG’s study highlights that Indian CSR reporting has evolved over the last decade but fails to ensure transparent and comprehensive assessments.
“CSR success is measured by its societal and environmental outcomes,” noted Jignesh Thakkar, Head of Social & CSR at KPMG India. “Inclusive reporting is critical to creating lasting impact.”
For Indian businesses to align with Sustainable Development Goals (SDGs) and global best practices, greater stakeholder involvement and rigorous assessment frameworks are essential.