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Companies Reveal CSR Impact Unknown – Research


Wednesday, 4th June 2014 at 10:28 am
Staff Reporter
Companies around the world are investing billions of dollars into social programs however in many cases the impact of that investment remains unknown, says global financial firm KPMG.

Wednesday, 4th June 2014
at 10:28 am
Staff Reporter


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Companies Reveal CSR Impact Unknown – Research
Wednesday, 4th June 2014 at 10:28 am

Companies around the world are investing billions of dollars into social programs however in many cases the impact of that investment remains unknown, says global financial firm KPMG.

According to the latest edition of KPMG International’s Sustainable Insight research series – Unlocking the value of social investment, 100 of the world’s largest companies reported a combined social investment valued at more than $US12.2 billion in 2013.

However, KPMG said few companies were reporting the impact these investments were actually having on the people they are intended to help.

The KPMG study reviewed corporate reports issued between 2012 and 2013 by the 10 largest global companies in each of 10 industry sectors.

It found these 100 companies and their associated corporate foundations invested, on average, the equivalent of 2.5 per cent of their pre-tax profits in programs to tackle social and environmental challenges such as access to education, healthcare and disaster relief.

However, only 20 per cent of these companies reported any quantified metrics for the impact of the programs they fund and only 32 per cent of companies reported a detailed investment strategy.

“Companies are investing huge amounts into social programs,” Neil Morris, Partner, Climate Change and Sustainability of KPMG in South Africa, who led the KPMG study, said.

“The $US12.2 billion invested by these 100 companies alone is equal to the entire annual foreign development aid budget of a country like France.2

“Measuring the impact of these investments on the ground can be challenging, but it is crucial to understand how effective these programs are, how they can be improved and where the money is best spent to deliver the biggest benefits. A clear strategy for social investment is essential to this process. ”

KPMG said Unlocking the value of social investment was intended to help corporate responsibility managers and others involved in designing and delivering social investments to overcome some of the challenges to measuring and reporting on social programs.

It said the edition contained practical advice, case studies and a framework for better measurement and reporting of social investments and programs.

To download KPMG International’s Unlocking the value of social investment, click HERE.

2According to OECD data development aid from France in 2012 totalled $US12 billion.



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