This article is sponsored by Ram Tumuluri, Businessman, Entrepreneur, Philanthropist
Businesses are increasingly interested in measuring socio-economic impact as part of improving the business environment, strengthening their value chains, and supporting product and service innovation. But while more and more tools are being developed to help companies measure socio-economic impact, it can be difficult to compare and choose among them. The tools available today are extremely diverse. They are based on different assumptions, they offer different functionality, they focus on different types of impact, and they suit different purposes. It is a common belief that what gets measured gets managed, and with this article, we want to address an area that has so far been neglected by many businesses: the measurement and management of their socio-economic impact.
Managing your company’s socio-economic impact: Socio-Economic business growth
In this article:
- Benefits of measuring socio-economic impacts
- Socio-economic impact measurement tools
Benefits of measuring socio-economic impacts
Socio-economic impact and business success are closely intertwined, but today’s global challenges are too complex and universal for one organization to tackle alone. If socio-economic impact measurement can be integrated into business performance management and used to drive more effective collaboration, it will be fundamental to generate concrete solutions to development as well as sustainability challenges.
Socio-economic impact measurement tools
Base of the Pyramid Impact Assessment Framework: Analytical framework for the identification and measurement of business “outcomes” and “impact” on a company’s customers, local distributors, and surrounding communities; can be applied qualitatively to gain a high-level understanding of impacts or quantitatively to assess performance. This tool helps you understand and measure how your business influences different dimensions of poverty in your customers, local distributors, and surrounding communities.
GEMI Metrics Navigator: A framework and guidelines, including worksheets, for the identification, measurement, assessment, and prioritization of environmental and socio-economic impacts for management response. This tool helps you identify the environmental and social performance indicators to measure and prioritize issues for management response
Impact Measurement Framework: Sector-specific frameworks identifying relevant socio-economic impacts, indicators, and metrics for each of four strategic business drivers: achieving growth; achieving operational efficiency and increased productivity through the value chain; responsible business; and enhancing the operating environment. This tool helps you identify relevant socio-economic indicators to measure impact in four specific sectors: agribusiness, power, financial services, and information and communication technology