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Performance Measurement in Social Enterprises: Social Impact Analysis
Abstract
This chapter begins with the notion of performance management and then focuses on the concept of social impact in order to deeply examine the measurement of performance in social enterprises. The chapter argues the importance of measuring social impact which is the crucial process in social investment and discusses which measurement method to choose. It then introduces the classification of methods in various forms based on the related literature. The chapter continues by explaining the most frequently used social impact measurement methods including cost effectiveness and cost benefit analyses, social accounting and auditing, SROI, balanced scorecard, SIMPLE, benefit-cost ratio, BACO ratio, expected return metric, cost per impact, and blended value. Finally, the conclusion focuses on the overall perspective of the subject, critical areas to pay attention to, and limitations.
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