Tools to measure the impact of social enterprise

1. IMPACT OF SOCIAL
ENTERPRISE
Dr. Gopal Thapa
Tribhuvan University
Email: thapazee@gmail.com

2. Characteristics of Social Enterprise
 formally established and autonomous
 value-based enterprise (around social justice,
fairness, equity, etc.)
 the economic activity of social enterprises is the
means to achieving social, environmental and
cultural objectives
 working not-for-private-profit and re-investing the
surplus in the overall
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3. Impact of Social Enterprise
 Arguably social enterprise should be about a fairer way of
exchanging goods and services for the benefit of all – not
just the few.
 Social enterprise should provide an alternative way of
exchanging goods and services and have an impact on
people (social), the planet (environment) and the society
structures in which it operates (culture).
 Social enterprise should not be just a business with some
social objectives, but rather a way in which people can
work together in order to create more equal, fairer and
sustainable communities.
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4. Impact of Social Enterprise
 Traditionally, social enterprises have existed to
produce social, environmental and economic
impacts (‘triple bottom line’).
 However, economic impact can be understood as
the means to an end and not an end in itself.
 Economic activities are in the center as a set of
means to achieve social, environmental and
cultural impacts.
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5. Impact of Social Enterprise
 Environmental impacts: All organisations have an impact
on the environment. A social enterprise has to ensure that
its impact does not have an adverse or negative affect.
 Social impacts: A social enterprise would want to ensure
that it impacts on people and their livelihoods in a positive
way ensuring prosperity and well-being for all.
 Cultural impacts: Culture is about traditions, norms,
values, languages, beliefs, arts, skills, lifestyle, laws,
attitudes, etc. Social enterprise should have a positive
impact on culture.
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6. Impact of Social Enterprise
 There is a connection between social,
environmental and culture impacts and the
importance of a social enterprise’s value base –
the way social enterprises do business.
 A social enterprise should be explicit about its
values and how it is living up to them.
 This recognition of distinct shared social values
makes a social enterprise different from other
forms of enterprise.
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7. Measuring Impact of Social
Enterprise
 Social Costs-benefit analysis (SCBA)
 Social Return on Investment (SROI)
 Ongoing Assessment of Social Impacts (OASIs)
 Balance Scorecard (BSC) and adoption
 Multidimensional model
 The Performance Measurement System Model
 Poverty Social Impact Assessment (PSIA)
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8. Social Costs-benefit analysis
(SCBA)
 It measures social cost and benefit of the enterprises.
 A social cost benefit analysis is a systematic and cohesive
method to survey all the impacts caused by a project or
other policy measure.
 It comprises not just the financial effects (investment
costs, direct benefits like profits, taxes and fees, etc), but
all the societal effects, like: pollution, environment, safety,
travel times, spatial quality, health, indirect (i.e. labour or
real estate) market impacts, legal aspects, et cetera.
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9. Social Return on Investment
(SROI)
 SROI is an outcomes-based measurement
tool that helps organizations to understand
and quantify the social, environmental and
economic value they are creating.
 It was first developed by Roberts Enterprise
Development Fund (REDF)
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10. Six-step Methodology of SROI
 Establishing scope and identifying key
stakeholders..
 Mapping outcomes.
 Evidencing outcomes and giving them a
value.
 Establishing impact.
 Calculating the SROI. Reporting, using and
embedding.
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11. Ongoing Assessment of Social
Impacts (OASIs)
 It is intended for internal use to evaluate social
impacts of non-profit agencies.
 It has four steps:
i. Evaluating organizational client –related
information needs
ii. Designing client tracking systems
iii.Automation
iv.Implementation
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12. Balance Scorecard (BSC) &
Adoption
 It was developed by Kaplan & Norton in 1996.
 It is incorporates financial and non-financial tools
as well as short-term and long term success
measures.
 It is based on: financial, customer/stakeholder,
internal business process, learning and growth
dimensions
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13. Balance Scorecard (BSC) &
Adoption (Bull 2007)
 Five dimensions of BSC
i. Return
ii. A learning organization
iii.The stakeholder environment
iv.Internal activities
v. Visioning
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14. The Multidimensional Model
 It was developed by Bagroli & Megali in 2011
 It includes economic, social and institutional
dimensions
 Economic: revenue, cash flow, cost, etc.
 Social: Sustainability of input (resources), Output
(goods and services obtained), Outcomes
(benefits) etc.
 Institutional legitimacy
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15. Performance Measurement System
Model
 It was developed by Arena in 2015
 It is based on:
i. Efficiency
ii. Effectiveness
iii.Impact
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16. Poverty Social Impact Assessment
(PSIA)
 Based on analytical techniques
i. Offering evidence on the effect of reforms
ii. Introducing policy course changes and corrections
and measuring them to limit negative impacts
iii.Proposing alternatives to stimulate positive impact
and poverty mitigation
iv.Creating room for public discussion on reforms
through engaging stakeholders
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17. Any Queries?
Thank You
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