The term “social impact” is word that is used all over the internet with regards to 3,610,000,000 search outcomes on Google. However, there’s no universal definition of it.
The world of charity and social enterprise is awash with buzzwords, acronyms, and terminology. Social investments and impact may be equally complex and confusing the meanings of these terms, which often depend on the context.
There’s a good chance that you’ve heard companies say “we’re creating social change”. Customers may also tell you “I prefer shopping with companies that are making a difference “… however what does this mean? How can you be a part of a change?
What is the Social Impact?
Social impact is defined as the impact on individuals and communities that occurs as a result of an inaction or action or inaction, an event or project, program or policy.
(Ps. it’s not a comprehensive and absolute term, however we love it).
Customers want to be more satisfied with the companies they collaborate with and purchase from.
World Economic Forum recently studied the lives of 5,000 millenials in 18 nations. They stated that the primary goal of a company is the ability to “improve the quality of life in society”. Businesses are now more popular with those which do their part to improve society.
We believe that’s why campaigns like SEUK’s #BuySocial can be very effective. There are a lot of entrepreneurs and business owners managing an organization which has a positive impact on society isn’t just an ethical choice, but also a competitive advantage.
This is the reason why social investors are… the social.
In order to make a social investment, a positive social impact is a must in your business strategy. Social investors would like to invest their money in order to achieve an economic and social return. Therefore, they’ll need an understanding of the social impact you’re hoping to make. This means that you must quantify and prove the social benefits you’ve made!
A solid social impact report can assist organizations and social enterprises:
Improve their service
Compare the achievements of similar organisations
Make clear the difference they are creating to attract more investment.
How can you assess the social impact?
It’s not always easy to figure out how to accomplish this However, here are a few points to take into consideration when determining your own measurements:
Sustainability
Who will benefit?
How many people will benefit?
What are the benefits?
Certain Social investors may be interested in particular social issue or geographic region. Other investors may offer capital for a wide range in social concerns.
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