Unit 12

Social benefits (and Social Costs)

Benedetto Cannatelli Mario Molteni Valentina Langella, 150829

BMC+
key
partners

key
activities

value
proposition

customer
relationships
customer
segments

key
resources

cost
structure

channels

social
costs

social
benefits

revenues
streams

ESSENTIAL TAKEWAYS

Know who are the beneficiaries of your business

Be clear on the main benefits your business
creates for them
Identify the indicators you can use to measure
the benefits you create
Assess the main social and environmental costs
connected with your activities
Select the indicators you can use to measure
the social costs connected to your activities

The problem
Which are the main benefits
your business in going to create for?
Customers

Employees

Community

Country

Measure and communicate in an effective way

the positive SOCIAL (and environmental) BENEFITS
that your business can produce in your context

Social benefits

For customers
o

Solution to a need (benefits acquired from a product's

capability to solve a problem)

For employees
o

Job creation, better work conditions, higher productivity

and wages (benefits connected to welfare policies)

For local community

o

Better life conditions, social security, lower crime rate (the

creation of tangible and lasting benefit to the community,
or particular groups within the community)

For the Country

o

Wealth, education, sanitation, employment, community

facility and social infrastructure requirements, tax (sociocultural improvement of the population)
5

Why to measure social impact?

Social impact measurements help organizations to:

demonstrate that they are making a difference

motive and inspire staff

involve their customers and stakeholders

engage and maintain funding

improve the services or products they deliver

and their organizational processes

In order to determine where scarce funds should be allocated

to achieve their greatest impact,
all organisations should understand the relative values of their impacts.
Understanding and measuring value
can inform the design of services
and be an important step in attaining funding.
The SROI Network, UK
6

Social Impact Assessment and Measurement

Who?

For whom?

Non
profit

Grant-making
foundation

Compete for
scarce fund

Impact
investors

Triple bottom line:

- Economic
- Social
- Environmental

Measuring
social impact
For
profit

Why?

How to measure social impact?

There are several tools and methods available
to measure social impact, but

E4impact is member of the SROI Network

SROI Network the main global alliance

for developing knowledge on SROI Measurement

SROI Network approach more and more recognized

by foundation and Social Venture Funds

MBA Course on SROI Methodology

Common frameworks and tools
Adaptation to uniqueness of each project

Give numbers!
Just an introduction!

Activities

Output

Outcome

Enterprise's
Primary
activities

Results that
can be
measured

Social change

Courses
Coaching

N. students
trained

N. new
businesses
Job created
Lecturers
trained

Need for Indicators

9

Social Impact Assessment and Measurement

The Impact Value Chain,
helps organizations to understand, manage and communicate
the Social Impact

togliere

10

E4impact Annual estimated social impact

Countries:
8

Participants
per MBA: 35
Trained people:
350
50%
Potential
entrepreneurs
trained: 175
20%
80%

New jobs
per new
business: 5

MBAs:
10

50%
Actual
entrepreneurs
trained: 175

New jobs
per existing
business: 3

New ventures:
35

New jobs from

new businesses:
175

Innovative
manager:
140

Average number
of MBAs per
Country: 1,25

Total new
jobs:
700

New jobs
per existing
business: 525

Staff
members
trained: 30

Lecturers
trained:
60
11

Pay attention also to Social costs

For
For local
local community
community
oo

Slum
Slum housing,
housing, gender
gender issues,
issues, traffic
traffic congestion,
congestion, social
social tension
tension
(fastest
(fastest growing
growing of
of cities
cities and
and communities)
communities)

For
For environment
environment
oo

Pollution,
Pollution, depletion
depletion of
of the
the ozone
ozone layer,
layer, discharges
discharges of
of
pollutants
pollutants to
to surface
surface waters
waters (resources
(resources consumption
consumption and
and
waste
waste production
production and
and management)
management)

Think how to reduce eventual social costs

12

Example X Positive impact

New business

New employees

More people to move into the area

Increase local community

Increase health services offered

Increase of quality of life

13

Example X Negative impact

New business

New employees

More people moving into the area

Increase local community

Increase number of cars moving

Increase of pollution
14

Example: Effects and solution

Textile factory

Clothes production

ut
pu
t

ity
v
ti
c
A

Effects

Toxic waste: if the waste

is dumped into the river,
fishermen cannot fish

So
lut
io

Job creation

Installing water pollution

control equipment
15

tiv
ity

Example: Effects and solution

Clean and accessible water

ut

pu
t

Ac

Construction of a water system

Effects

Increase of health
Less waste of
water resources

So
lut
io

Gender issue:
social role of woman

Networking with local NGOs

to support gender equality
16

The task

Make an hypothesis on:

1. Main social benefits your business will produce
2. Value of some indicators of social value creation

17

ESSENTIAL TAKEWAYS

Know who are the beneficiaries of your business

Be clear on the main benefits your business
creates for them
Identify the indicators you can use to measure
the benefits you create
Assess the main social and environmental costs
connected with your activities
Select the indicators you can use to measure
the social costs connected to your activities
18

Dare to imagine

http://www.youtube.com/watch?fe
ature=player_profilepage&v=Q1eI
YZjzO7A

19