CSR Metrics

Goals of Measurement
Align investment with value
Assess actual value created
Inform management decisions
Help you maintain the integrity of your
work
Contribute to reporting, communication,
and branding

EASY HARD
Sales revenue
Capital assets
Investment
returns
Dividends
Etc.

Life
Freedom
Dignity
Happiness
Etc.
Goodwill
Insurance
Depreciation
Liability
Projected revenues
Emission credits
Income changes
Education access
Earnings potential
Technology benefits
Etc.
Health
Safety
Biodiversity
Clean air
Safe water
Education results
Political stability
Cultural Advancement
Etc.
TYPE I TYPE II TYPE III TYPE IV
Ease of Measuring
Articulating Value
Five basic ways of articulating value:

Financial (accounting: cash in, cash/work out)
Monetizable (translating non-financial value
into monetary equivalent)
Quantitative (numbers: size, magnitude or
degree)
Qualitative (description: kind, type, or
direction)
Narrative (storytelling)
Value Chain of Metrics
Inputs Activities Outputs Outcomes
What is
put into
the
venture
Ventures
primary
activities
Results
that can be
measured
Changes to
social systems

Goal
Alignment
Activity
and goal
adjustment
Impact Metrics= differential change
Inputs Activities Outputs Outcomes
What is
put into
the
venture
Ventures
primary
activities
Results
that can be
measured
Changes to
social systems

Goal
Alignment
Activity
and goal
adjustment
What would
have
happened
anyway
Essential
= IMPACT
-
Evaluation Roles
Outputs Outcomes
Results that can be
measured in operations
Changes to social
systems

Tracked regularly

Periodic
CR Metrics
Environment Community Workplace Marketplace
Broad metric
categories

Metric sub-
categories
Charitable
Giving
Community
Education
Community
Lending &
Investment
Employee
Volunteerism

Business Travel
Byproducts
Emissions to
Air
Emissions to
Water
Energy
Consumption -
Electricity
Energy
Consumption -
Fuel
Environmental
Projects
Large-Scale
Environmental
Impact
Waste
- Paper
- Water
Employee
Diversity
Employee
Engagement
Employee
Satisfaction &
Retention
Health & Safety
- Illness
- Injury
Customer
Satisfaction &
Retention
Operation
control
Supply Chain


CR Metrics
Environment
Community Workplace
Byproducts
produced through
the manufacturing
process
Emissions to air and
water through
manufacturing,
operations, or
logistics
Energy
consumption by
type or total energy
used
Waste produced
paper, water,
hazardous, non-
hazardous, other
Expenses or
personnel involved
Charitable
corporate giving
direct, through
foundation
Community
investment
project spend, local
taxes paid
Employee activities
volunteer hours
Customer diversity
and inclusion
Unique projects and
engagements


Employee diversity
caste, age,
gender
Health and safety
injury and accident
rates, works day
loss rates,
absenteeism
Turnover rate
Employee
satisfaction
(typically from
surveys)
Training for
employees spend,
time, or number or
trainings


Marketplace
Customer
satisfaction
measures
surveys, complaint
tracking, customers
served, external
rankings
Supply chain
measures supplier
satisfaction,
trainings, audits,
total spend on
targeted supplier
groups,
certifications
Customer reach in
socially
disadvantaged
groups or areas
Measurement Types
Financial return on investment

The direct monetary reward that social investors receive for undertaking
the risk of investing their capital

Financial performance of the investee

Conventional measures of business success such as revenues, assets,
growth rates and profitability

Socio-economic benefit

Improvements in the economic status of a target population as a result
of the investees activities arising from the investment.
At the individual level, these benefits include job creation and higher
salaries or benefits to employees, as well as any cost savings realized by
customers.
At the regional or national level, socio economic benefits include
increased government tax revenues, decreased costs in providing public
services, along with increased regional investment and economic activity

Measurement Types

Social benefits

Improvements in the well being of the target population in terms of
better health or quality of life

Environmental benefits

Improvements in the natural environment such as cleaner water etc.

Financial Performance
Financial Performance
Socio-Economic Returns
National or Regional Socio-
economic Returns
Blending Types of Indicators
Whats the value proposition?
Financial value proposition is easy to count
Revenue
Costs
Non-financial value?
Outputs/measurable indicators:
#s of customers served with waste collection
tons of garbage recycled
# jobs created
# people trained, etc.
Outcomes/results:
Less disease, fewer deaths, healthier people, sense of pride
and dignity
Cleaner water, restored fish populations & biodiversity
Fewer lost work days due to illness, lower health expenses,
greater incomes and economic security





Outputs
Measures like number of jobs created, the
revenues from customer payments, and the
amount of garbage collected.
Outcomes Monetization - Base case
SROI Analysis






Outputs Outcomes
Collected information from:
Internal sources
External sources

Example could be:

disease and death caused by exposure to
garbage in similar regions
costs of waste management if provided by the
government in similar regions.
Monetization - Base case
SROI Analysis






Outputs Outcomes Monetization - Base case
Assuming what would have happened otherwise- if it
did not exist

what the incidence of childrens deaths from diarrhea
in the region would be
what it would cost for the government to collect the
garbage instead of the company
where the garbage would be if not collected by the
company
SROI Analysis






Outputs Outcomes
Monetized impacts using the rupee value of:

The increase in earnings
The relative savings to taxpayers of having the
company do the waste management rather than
the municipality


Monetization - Base case
SROI Analysis

Metrics & Evaluation

Simplify

Set clear goals & establish baseline at the outset
(start where you are)

Measure a few things well as opposed to
everything poorly

Concentrate on measuring a few signature
programs, with a few signature measurements

Move towards impact metrics, but blend in some
evaluative metrics