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What is Social Impact and How Do I Measure It?

The term “social impact” is phrase that is used all over the internet with regards to 3,610,000,000 search result pages on Google. There’s no standard definition of it.

The world of charitable and social enterprise funding is awash with buzzwords, acronyms and terminology. Social investing and social impacts may be just as complicated and confusing to comprehend 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 a positive impact on society”. Customers have said “I prefer shopping with companies that have a positive impact” “… But what does this mean? What can you do to create a positive social impact?

What is the Social Impact?

Social impact is defined as the impact on communities and individuals that occurs as a result of an act or inaction the result of an activity program, project or policy.

(Ps. it’s not a comprehensive and final term, however we love it).

Customers want to be more satisfied with the businesses they associate with and purchase from.

World Economic Forum recently studied the lives of 5,000 millenials in 18 nations. They concluded that the main goal for a company should be in order to “improve our society”. People are more interested in businesses which do their part to improve society.

This is why we believe that campaigns like SEUK’s #BuySocial can be very effective. For a large number of entrepreneurs and business owners operating an organization that has a positive social impact isn’t just an ethical decision 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 impacts are essential to your business strategy. Social investors would like to invest their money in order to achieve financial and social return. Therefore, they’ll need to know the impact on society that you’re hoping to make. This means that you must quantify and prove how your impact on society is being measured!
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.

What is the best way to measure the social impact?

It’s not easy to understand how to do this However, here are a few aspects to think about when determining your own measurements:

Who will benefit?
What are the benefits to people?
What benefits do they bring?

Certain Social investors may be interested in particular geographic area or social issue. Other investors may offer capital for a wide range from social problems.