Social Enterprise - ENT6A2

Week 17 – Measuring Social Value

& Social Impact
Today
– Reminder of Assessment 2
– Why measure Social Value and Social Impact?
– Guest speaker: Daniela Castiel from The Social Value Portal
– Workshop using TOMs to identify and measure impact.

ENT6A2 – Social Enterprise - Anette Lundebye _ week 16 2

 Summative assessments:
Developing a Social Enterprise:
Develop a project plan for the implementation of
your Social enterprise
Submission date: Week 20 - 11. March 2019 Objective: Creating, delivering and capturing value is
what social entrepreneurs do, and to do so they need
Summative individual assessment: note
summative assessment 3 builds on this. A ‘business model’ to lay the foundation for sustained
earned revenue. You will apply your entrepreneurial
Format: A detailed project/ business plan delivered
skills to develop your social enterprise ‘business
as a web-site, a video or a written report max. 2500
model’ to define what you are trying to do for whom
words length or equivalent.
and how you think it’s going to work - its social impact!
Task: Research and develop a detailed project/
business plan for the implementation of a social
enterprise based on your pitch for a social enterprise
alongside the feedback gained from your peers and
tutor.
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Measuring Social Value & Impact

5
What is Social Value?
"Social value is the value that people place on the changes they experience in their
lives. Some, but not all of this value is captured in market prices."
An account of social value is a story about the changes experienced by people. It
includes qualitative, quantitative and comparative information, and also includes
environmental changes in relation to how they affect people’s lives.
By applying the Principles, it is possible to create a consistent and credible account
for the value that is being created or destroyed. The outcomes, and the measures
and values of outcomes, can remain specific to the context, activity, and the
stakeholders involved.
(Social Value UK)

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Why measure Social Value?
A social audit starts with 2 inter-related questions:
1. What questions do you need to ask to evaluate the organisation's social impact?
2. How will you know if your organisation is 'successful'?
BUT value is inherently subjective, so when project leads, partners and funders all fight over ways to measure
social value, really they're all just fighting over measuring what they think matters the most.
How can I translate the change that I have captured into a change that others understand and value?
By measuring outcomes not only output:
– An output only tells you that an activity has taken place, whereas an outcome is an indicator of change.
– Simply measuring outputs does not tell the whole story.
– For example, distributing 25 mosquito nets (output) does not necessarily mean that will be a reduction of
instances of malaria (outcome); the malaria nets may never be used.

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Social Auditing
Organisations use audits to demonstrate their efficiency and effectiveness.
Audits are undertaken voluntarily; they involve certification by a third party; they
apply to governance and management systems (not just outcomes). (Bull & Ridley -
Duff, 2018)
There are two approaches:
• SAA – Social Accounting and Auditing
• S-ROI- Social Return On Investment

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Social Value principles
• Stakeholder engagement
• Scope and materiality
• Understanding change
• Comparative
• Transparency
• Verification
• Embedded

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SAA – Social Accounting and Auditing
SAA is a flexible framework for capturing social impact. It helps organisations prove, improve
and account for the difference they are making.
Helps to plan and manage the organisation as well as demonstrate what they have achieved.
Social accounting and audit is a logical and flexible framework which enables an organisation to
build on existing documentation and reporting systems and develop a process.
This is predominantly Qualitative in nature and enables organisations to:
– Account fully for their social, environmental and economic impacts (TBL).
– Report on performance
– Provide essential information for planning future action and improving performance.
SAA aims to convey the views and perceptions of change.

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S-ROI- Social Return On Investment
Aims to translate social impacts into financial values and is a predominately (but not
exclusively) quantitative Approach. It is a methodology promoted in both the US and
in the UK.
It emphasizes on the use of financial indicators.
By establishing financial proxies for outcomes such as ‘reduced social isolation’, a
monetary figure can be attached to your organisation’s impact and your organisation
can demonstrate the return that it generates on investment (for example, each £1
spent generates £5 of social value).

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Social Value principles
Involve stakeholders – Inform what gets measured and how this is measured and valued in an account of social value by
involving stakeholders.
Understand what changes – Articulate how change is created and evaluate this through evidence gathered, recognising
positive and negative changes as well as those that are intended and unintended.
Value the things that matter – Making decisions about allocating resources between different options needs to recognise
the values of stakeholders. Value refers to the relative importance of different outcomes. It is informed by stakeholders’
preferences.
Only include what is material – Determine what information and evidence must be included in the accounts to give a true
and fair picture, such that stakeholders can draw reasonable conclusions about impact.
Do not over-claim – Only claim the value that activities are responsible for creating.
Be transparent – Demonstrate the basis on which the analysis may be considered accurate and honest, and show that it
will be reported to and discussed with stakeholders.
Verify the result – Ensure appropriate independent assurance.
https://www.youtube.com/watch?v=_VggeBiJcu4#action=share

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Similarities and differences
Both SAA and SROI aim to clarify and measure social impacts as a way to benefit
people.
Both aim to measure outcomes, not outputs.
An output only tells you that an activity has taken place, whereas an outcome is an
indicator of change. Simply measuring outputs does not tell the whole story. For
example, distributing 25 mosquito nets (output) does not necessarily mean that will
be a reduction of instances of malaria (outcome); the malaria nets may never be
used.
SAA tends to be more 'bottom-up' and focus on the (internal) relationships with
stakeholders and the process.
The reports are often not easily
ENT6A2comparable
– Social Enterprise -with other _organisations.
Anette Lundebye week 16 13
Similarities and differences
SROI encourages more of a standard approach making data more comparable.
This makes it more often attractive to investors, funders and contractors (especially
in the public sector) because it speaks more the language of 'business' with
numbers. So admittedly could make the process more investor led.
Criticism is that Government tend towards SROI.
SROI may be used to forecast. SAA only reports on what has happened

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references
Ridley-Duff & Bull (2015) Understanding Social Enterprise: Theory and Practice.
Social Audit network: http://www.socialauditnetwork.org.uk/
Social Value UK: http://www.socialvalueuk.org/
School for Social Entrepreneurs: https://www.the-sse.org/resources/sustaining/measuring-social-impact/

ENT6A2 – Social Enterprise - Anette Lundebye _ week 16 15

Thank you!