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Proposed Independent Model: LVA-SRoI
• Social Return on Investment (SRoI) is available only conceptually, but no accurate ...
Ascertaining Lifetime Value Addition (LVA)
• To be ‘estimated’ through following indicator domains :
• Factor 1 : Capital ...
Calculating LVA
LVA = [ CI x WCI + SE x WSE ]xT + [(CatFac)T x BaselineValue – 1]
Where
CI = Value of Capital Investment i...
Implementing LVA - SRoI
• Annual Survey done in Dec of each year
• Sample set to include 50% each of untrained and trained...
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Social impact analysis model

This is a model of evaluation of the impact of Social Welfare interventions and particularly vocational training based initiatives. The model proposes the use of Lifetime Value Addition for absolute measurement and Social Return on Investment as a relative measurement.

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Social impact analysis model

  1. 1. Proposed Independent Model: LVA-SRoI • Social Return on Investment (SRoI) is available only conceptually, but no accurate model of implementation has been seen • No benchmarking index or standards available • Estimation can be based using a sample based survey to determine net value addition for Shared Value CSR • Lifetime Value Addition will be defined and limited as : • Economic Value addition as identified/estimated over a period and assumed for perpetuity (or otherwise) • Economic Value addition will defined as post training period – addition of economic value to participant, attributed fully • SRoI = LVA/Training Investment • Training Investment = No. of days in training x avg. training cost per participant per day
  2. 2. Ascertaining Lifetime Value Addition (LVA) • To be ‘estimated’ through following indicator domains : • Factor 1 : Capital Investment: • Addition of manpower • Addition of productivity equipment • Factor 2 : Socio-Economic Investment • Addition of consumer durables • Investment in education in family • Investment in housing/land • Catalyzing Factor : Behavioral/Business Practice Transformation • Introduction of uniform/PPP equipment • Firm incorporation, service tax filing • Current Basis/Baseline: • Current no. of sites : • Monthly Turnover : • Current Personal Income /Profit
  3. 3. Calculating LVA LVA = [ CI x WCI + SE x WSE ]xT + [(CatFac)T x BaselineValue – 1] Where CI = Value of Capital Investment in 1 Year SE = Personal Savings required to make Socio-Economic Investment/Spends = Value of Investment * 5 (Multiplied by 5 : because 24% of all savings in SEC D goes in such investments) WCI + WSE = 1 ; where WCI = weightage given to Capital Investment , WSE = Weightage given to Socio-Economic investment T = Applicable no. of years for the effect of additional skill ( for e.g. 5 years ) Baseline Value = Fair Turn over estimation for that year , based on subject interview CatFac = 1 + % age increase attributed to profesionalising a firm | to be ascertained from research
  4. 4. Implementing LVA - SRoI • Annual Survey done in Dec of each year • Sample set to include 50% each of untrained and trained • Survey last year trained candidates • TOs and TAs to carry indepth interview of 20 candidates each and exhaustively fill a pre-formatted survey • Sample information to be extrapolated to all candidates as per local sampling results • Centrewise and course SRoI to be calculated • Absolute LVA to give visibility on value generated • SRoI comparison to be done between trained and untrained candidates to qualify extent of value addition

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