In a previous post, I highlighted the need for a radical transformation of capitalism in view of better balancing the financial, natural and social dimensions of capitalism as the only way to future-proof our economies.
Measuring and reporting on corporate performance are essential components of this transformation. In this spirit, a few weeks ago we launched “Measuring socio-economic impact: A guide for business ” which provides an entry point into an area that we hope will get the attention that it deserves in the future: the measurement and management of socio-economic impact.
While there are many tools to help business tackle the challenges of environmental performance, the practice of measuring socio-economic impact remains largely within international development and academic communities. Here at the WBCSD, we are keen to accelerate business efforts in this domain. Scaling up solutions will not happen without a solid understanding of what works and what doesn’t – and having sound measurement systems in place is fundamental to obtaining this insight.
“Measuring socio-economic impact: A guide for business” will help companies perform three essential tasks:
- Firstly, to define and articulate the business case for socio-economic impact measurement within their organization;
- Secondly, to understand the essentials of impact measurement theory and communicate with internal and external stakeholders on the subject;
- Thirdly, to navigate the landscape of measurement tools, and identify those that best meet their needs. We profile 10 existing tools, analyzed on the basis of functionality, fit for purpose, cost and complexity of implementation, and examples of their application in practice.
Of course, this is just the beginning. Our ultimate aim is to work towards one standard for business which incorporates social, natural and financial capital. This guide provides a valuable starting point - and we will continue to galvanize business leaders to change the rules of the game. Let’s get to work!