Measuring socio-economic impact A guide for business Overview - PowerPoint PPT Presentation

Measuring socio-economic impact A guide for business Overview presentation April 2013

Context Companies: increasingly interested in measuring socio- economic impact as part of: - Maintaining their license to operate - Improving the enabling environment - Strengthening their value chains - Fueling product and service innovation Many tools available, however: - Diversity in tools - Based on different assumptions - Offering different functionality - Focusing on different types of impact - Suiting different purposes

About the guide Measuring socio-economic impact: A guide for business Main aim: help companies navigate the complex landscape of socio-economic impact measurement. The The The The business road essentials tools case ahead Outlines Introduces the Suggests areas Profiles a business terminology of focus to selection of 10 motivations for and basic accelerate publicly measuring socio- theory used in business efforts available tools economic impact this space for a to measure and tailored for business manage socio- business audience economic impact needs

Part 1: The business case

Part 2: The essentials  How do business activities translate into socio- economic impacts? (“results chain”, “route to impact”)  Measurement can happen anywhere with specific metrics along the results chain  Socio- economic impact is the “end goal” in terms of change in assets, capabilities, opportunities, and Impact standards of living – positive or negative, intended or unintended, temporary or sustainable over time  Measuring “impact”, in the technical sense of the Outcome word, is challenging to do (decreasing influence along the results chain – time lags, contribution vs. attribution, lack of baseline data) Output  Prioritization needed; judicious use of proxies can Activity be key (ex. number of units of products sold, the Input output, as good proxy for reduction in the incidence of a disease)

Part 3: 10 tools selected and analyzed along several dimensions  Strategic fit (link to the business case)  Applicable level(s) of analysis (site value chain, operations at national level, etc.)  Guidance included (setting scope, selecting indicators, interpreting results)  Metrics (input, activity, output, outcome, impact)  Data requirements (internal company data, external data collection)  Key audiences (company managers, civil society, governments, etc.)  Level of effort to implement  Developer services  Practical examples of their application on the ground

The 10 tools profiled

Tools analysis overview

Part 4: Road ahead Evolving landscape of tools – guide intended to be a living document , updated and improved as existing tools are updated and new ones emerge Advance the practice by: - Integrating measurement into business performance management and reporting, and driver of action - Using measurement to drive more effective collaboration between business, government, and civil society – data drives better understanding of roles and high-potential impacts

Access the guide and supporting materials www.wbcsd.org/impact.aspx