The Development of Social Impact Measurement

Abstract

This chapter will explore the development of social impact measurement, with a focus on how social value and social impact measurement has amplified, both within academia and within policy and practice. Whilst much of this growth has been in Europe, North America and Oceania, there is rapidly increasing government support in this area now in Asia, Africa and South America. This chapter will set the scene for the subsequent chapters, with their thematic focuses on measurement (specifically in the framing of measurement within the SDGs), finance, collaboration, power and ethics. It will finish with a section on the potential for development in the social impact measurement sector moving forwards, in a way that will set the scene for subsequent chapters. [Relevant SDGs: SDG17: Partnerships for the Goals]. Introducing Social Impact MeasurementThe social impact measurement sector has grown exponentially over the last few decades, going from a niche area to one that is deeply embedded within government policy, investor behaviour and third sector management (as well as growing in the private sector). The growth of Corporate Social Responsibility (see Chapter 8 for further information on Corporate Social Responsibility), Environmental and Social Governance (ESG), green investing, impact investing, as well as new policy mechanisms such as Payment by Results contracts (PbR), Social Impact Bonds (SIBs) and outcomes-based commissioning have all played a part in this growth. This growth in pluralistic policy mechanisms, investment markets and a growing awareness of the need for sustainable growth, have all combined to drive interest in social impact measurement (Kah and Akenroye 2020).

Antecedents and Consequences of Three Selling Strategies in Social Enterprises

“…Although no single social enterprise can solve the social and environmental challenges facing humanity, they can generate a positive social impact in their local realities (Antolín-López et al, 2022). The social impact of a social enterprise is understood as the result of the organization's efforts to change the lives of individuals or groups; thus, it is an evaluation process focused on these changes (Hazenberg & Paterson-Young, 2022). When a social enterprise measures its performance and seeks to improve on what it has learned, it will adjust its strategies to create a greater social impact for people in need, and will do so in a commercially viable way (Nguyen et al, 2015).…”

“…Social impact is a relevant research topic because companies seek to be socially responsible and sustainable (Hazenberg & Paterson-Young, 2022;Siemieniako et al, 2022). Also, more and more consumers expect the companies they buy from to make a social or environmental impact (Hosta & Zabkar, 2021), and in collaboration with governments, companies and non-governmental organizations better address the challenges of local society and the planet (Siemieniako et al, 2022).…”