Question

How to calculate social impact of a business?

Answer 1

Social Impact Measurement is a process of understanding how much social change occurred and can be attributed to an organization's activities. The integrity of the process is usually bolstered by an impact statement and a clear impact-driven, stakeholder-focused strategy.  It is very different from data collection, impact assessment and impact reporting but often gets mixed into those categories.

Impact Measurement is an evolving practice used by mission-driven organizations, sustainable development organizations, for-profit businesses, impact investors, and more.

Lack of proper funding, training, and the right technology adoption across sectors have traditionally limited its true value-creating potential. While the rise of impact investing & other trends in philanthropy is reducing some of these headwinds, we are still a long way of reaping the true benefits of evidence based approach.

Most organisations focus on measuring easy things – like number of units shifted, or deliverables achieved – not so much on whether the world is a better place. Understanding impact measurements is a seismic shift for many organisations – both for-profit and non-profit – and moving from measuring outputs to also measuring outcomes is a strange new world of reporting.