The impact value chain
The process of creating social value can be understood by thinking in terms of a value chain. Throughout the value chain, people and organisations contribute to delivering change.
Beyond value towards return
You have to identify and screen activities and projects that your clients could benefit from. Develop a feasible plan to deliver the activities, and monitor if the strategy delivers the expected results. These results must be reported and evaluated. Across the whole of these projects, comparing inputs to impacts should answer if net value has been created. Within your own organisation, but also across the entire social value chain.
Social Return on Investment
Social Return on Investment (SROI) is a methodology for measuring and managing rn on the social impact of an investment. It represents social value in monetary terms. This process is called valuation. The advantage of assigning monetary values to outcomes is that it enables relative impact assessment. Since the investment in the social projects is typically monetary, the social value should be monetized as well. In this way, something can be said about how big the impact of your project has been relative to investments.Monetizing these social impacts not only shows this value, it also enables better management. It reveals the main drivers of social value and identifies the stakeholders who benefit from it. It also reveals the timeframe in which this occurs and how the impact of your investment or business can be maximised.
Establish SROI
Since the launch in 2008, Social Evaluator has been helping a range of organisations across Europe and North America. We have trained them in applying the SROI principles, and continue servicing them with our social e-valuator™ software.Learn more about our solutions to see how we can help you manage social impact. Contact the Social Evaluator team.