India Inc.’s ₹27,000 cr CSR is spent more on compliance reporting than real outcome, study finds

India Inc. spends ₹27,000 crore annually on fulfilling their corporate social responsibility (CSR) mandate, but majority of their implementation partners – the civil society organizations (CSOs) – invest less than 5% of their budgets on programme impact data collection, a new study has showed, raising concerns that CSR is fuelling compliance reporting more than real outcomes.

The report, titled Measuring What Matters, Learning What Works report, prepared by global advisory firm Sambodhi and Dasra, mapped the approach of 175 CSOs across India towards Monitoring, Evaluation and Learning (MEL) to arrive at this conclusion.

Stating that data flows up, but learning rarely flows back, the report points out that 73% of data collected by NGOs is used for donor reporting, while only 18% informs internal decisions. “Learning - the “L” in MEL - is under-prioritised, leaving frontline teams with little space to adapt and course correct”, it states. The authors of the study call it the first large-scale exercise meant to expose critical gaps in the impact measurement of CSR projects in India.

According to the report, although 81.8% of NGOs share findings with communities, few involve them in shaping what’s measured or how results are interpreted. MEL continues to be driven by funder priorities, it says.

“Across India, CSOs are stepping into deeper and more complex roles. They are responding faster, working across more geographies, and making tough decisions under tight timelines, often without the infrastructure or the time to pause and reflect. MEL was meant to support that reflection. But in many places, it is still treated as a reporting task, not a strategic tool”, the report points out.

On the positive side, the study observes that across the sector, CSOs are adapting tools beyond their original intent making learning possible, even in low resource settings. “Peer networks are filling training gaps, offering hands-on support where formal systems fall short. Dashboards are being repurposed to flag operational risks and guide quick decisions. In many places, community feedback is being gathered through storytelling, WhatsApp check-ins, and local mapping exercises. These may not look like traditional MEL systems, but they are making learning possible”, the study says.

However, overall, the findings of the study propose that MEL must sit closer to strategy. “It should guide priorities, inform design, and showcase what is important. This transition will require patient investment, improved infrastructure, and inclusive mechanisms co-created with people closest to the work. Only then will MEL be able to completely serve its intended purpose of shaping priorities, informing design, and generating insights that guide action”, the report says.