How to measure social impact?

All our actions have social impact. It is one of the most important variables when formulating strategies for organizations. Directly or indirectly, every company has a relationship with society based on its actions; Measuring social impact determines the extent to which this relationship is harmonious.

It is no longer just a matter of achieving economic benefits, but of contributing to the well-being of society and achieving substantial changes in the conditions of people and the planet. It is necessary for each company to reflect on the type of social impact it wants to generate and the appropriate tools to achieve, measure and communicate it.

Thus, when planning and approving projects, the social impact must be investigated and measured before and during their execution.

One method for this is SROI (Social Return on Investment). This tool is based on the measurement of extra financial value – environmental, social and economic – that does not appear in conventional financial accounting. With it, organizations can evaluate the impact of their actions on their stakeholders as well as analyze ways to improve the management of activities and the performance of invested resources. In this way, visibility is given to social aspects that companies previously did not take into account and a value is given in a monetary language that makes it easier for organizations to measure their social impact.
At Cliclab, we are experts in the application of the SROI method. We have worked on several projects highlighting the importance of measuring and evaluating the changes generated by the actions of organizations in society.