Purpose – This paper aims to discuss the notion of social impact of social impact measurement in social enterprises by supporting the multiple-constituency theory as a contribution to this under-theorised issue. Moreover, the paper proposes the stakeholder-based approach as the most appropriate solution for selection among metrics related to the growing number of social impact measurements. Design/methodology/approach – The paper proposes a review of social impact measurement studies by considering contributions from both academia and practitioners, while providing a reassessment and conceptualisation of this issue in terms of the multiple-constituency theory. Findings – The paper criticises the “golden standard approach” to social impact measurement according to which social enterprises have to find one standardised metric capable of determining an organisation’s real impact. The golden standard approach promotes a more “political view” of social enterprises, according to which multiple stakeholders set performance standards based on their viewpoints regarding the measurement’s purposes. Research limitations/implications – The paper responds to the urgent call to define a theoretical framework that might guide social impact measurement, seeking to avoid the current lack of order and transparency in existing practices that could serve as a vehicle for camouflaging corporate social un-sustainability. Originality/value – The multiple-constituency approach should discourage organisations from opportunistically selecting a social impact measurement with the sole purpose of proving a higher impact, as, within the proposed new perspective, social impact metrics are no longer managed independently by the social enterprises themselves. Instead, these metrics are defined and constructed with the stakeholders. As a result, social enterprises’ manipulative intentions should diminish.
The long-term performance of NPOs is based on their ability to link and maximize social value as defined in their mission. This involves legitimacy obtained from stakeholders influenced by and influencing NPO activities, and their operational capacity or economic efficiency. Thus, NPOs have to utilize multiple level accountability systems which should be compatible with their multiple objectives and stakeholders' claims. The accountability system of an NPO should focus on its operational capacity, because in order to maximize its efficiency, an NPO has to measure its resource use, cost structure, and financial structure. Legitimacy obtained from stakeholders is also integral. If an organization is considered a social contract between multiple stakeholders, it has to consider the social economic effects of its activities and it has the duty to account for them. However, since the mission of an NPO is to create and distribute social value to a certain specific group, its social value creation has the most important role and an NPO should measure the social value it has created. This article analyzes the accountability system of a specific type of Italian NPO called Centri di Servizio per il Volontariato (CSVs)-namely centers which provide services for voluntary associations. The aim of the research is to verify if the accountability system adopted by CSVs satisfies their need for multiple level information (operational, legitimacy, and social value) and accomplishes their stakeholder claims, and to determine its impact on the definition and implementation of their strategy and on their long-term performance. The research was carried out using the action research model, and the findings are based on the analysis of a sample of 64 CSVs situated throughout Italy.Résumé La performance sur le long terme des organisations à but non lucratif dépend de leur aptitude à relier et à maximiser la valeur sociale définie par leur mission. Cela fait intervenir la légitimité acquise auprès des parties prenantes, qui sont influencées par et qui influencent les activités mais aussi la capacité opéra-tionnelle ou l'efficience économique des organisations à but non lucratif. Ainsi, les organisations à but non lucratif doivent recourir à des systèmes de responsabilité à plusieurs niveaux, à la fois compatibles avec leurs divers objectifs et avec les revendications des parties prenantes. Pour maximiser son efficience, une organisation à but non lucratif doit évaluer l'utilisation de ses ressources, sa structure de coûts et sa structure financière; son système de responsabilité doit donc se concentrer sur sa capacité opérationnelle. La légitimité acquise auprès des parties prenantes est aussi primordiale. Si une organisation est considérée comme un contrat social entre plusieurs parties prenantes, elle doit prendre en considération les effets socio-économiques de ses activités et rendre des comptes à leur propos. Cependant, la mission d'une organisation à but non lucratif étant de créer et de distribuer de la valeur sociale à un groupe s...
This paper analyses the impact of Italian Legislative Decree 32/2007 -following the 2003/51 European Directive -and the disclosure of environmental and employee matters in terms of overall volume, completeness of information, presence of bad/good news and target-oriented information. Content analysis has been applied to all Italian corporate groups that made public both the consolidated annual report and the stand-alone social and environmental report in 2005 and in 2010, for a total of 96 reports. The results show that despite the overall increase in sentences devoted to environmental and employee matters, the completeness of the information has not substantially improved, indicating that the 2007 regulation has been ineffective. The Italian experience could provide useful insights for European regulators. Such insights may inform policy recommendations to design a mandated social and environmental accountability process with the potential of providing information to societal stakeholders while facilitating accountability.
Purpose Drawing on the phenomenological concepts of “empathy” and “communal emotions” developed by Edith Stein (1917, 1922), the purpose of this paper is to discuss the co-existence both of the legitimacy and accountability perspectives in voluntarily delivered social and environmental reporting (SER), based on different “levels of empathy” towards different stakeholders. Design/methodology/approach The paper adopts an interpretive research design, drawn from Stein’s concept of empathy by using a mixed-method approach. A manual content analysis was performed on 393 cooperative banks’ (CB) social and environmental reports from 2005 to 2013 in Italy, and 14 semi-structured interviews. Findings The results show that CBs voluntarily disclose information in different ways to different stakeholders. According to Stein, the phenomenological concept of empathy, and its understanding within institutions, allows us to interpret these multiple perspectives within a single social and environmental report. Therefore, when the process of acquiring knowledge in the CB–stakeholder relationship is complete and mentalised (level 3, re-enactive empathy), the SER holds high informative power, consistent with the accountability perspective; on the contrary, when this process is peripheral and perceptional (level 1, basic empathy), the SER tends to provide more self-assessment information, attempting to portray the bank in a positive light, which is consistent with the legitimacy perspective. Originality/value The concept of empathy introduced in this paper can assist in interpreting the interactions between an organisation and different stakeholders within the same social and environmental report. Moreover, the approach adopted in this paper considers different stakeholders simultaneously, thus responding to previous concerns regarding the lack of focus on multiple stakeholders.
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