Measuring social added value A model for public authorities Floriana Nappini [ Network: Better Future.
Presentation on theme: "Measuring social added value A model for public authorities"— Presentation transcript:
1 Measuring social added value A model for public authorities Network: Better Future of Social EconomyFinal ConferenceJune 26th, BrusselsMeasuring social added value A model for public authoritiesFloriana Nappini[
2 Network: Better Future of Social Economy The 5 Strands: I-Public Procurement and Public-Private Partnerships Lead by the Polish Ministry of Regional Development II-Measuring Social Added Value Lead by the Lombardy Region III-State Aid and Social Services of General Interest Lead by the Flanders ESF Agency IV-Social Franchising Lead by the Swedish ESF Council V-Financial Instruments Lead by the Czech Ministry of Labour and Social Affairs
3 Methodology The research outline is based on two principles: the importance of the experience aspectthe participatory approachcollecting as many experiences as possible on local, national and international levelsinvolving all stakeholders: project partners, subjects who in the future will use the evaluation tool, but also social enterprises that will be the object of evaluationIt should lead to the implementation of a tool that is as close as possible to the actual needs of the players involved and applicable to/in the everyday life of organisations.
4 I. Attention to direct experience - Desk research Survey of documents and site-bibliography: to identify sensitive areas and aspects to be considered; approaches and models for quality and social responsibility were examined.Subsequently, the research has focused the analysis on:International systems of quality evaluation (and particularly the ISO, SA8000 and EFQM rules)Evaluation systems promoted by EU projects within the last few years (e.g. several projects under EQUAL Initiative)Experiences of social accounting developed in Italy and Europe during the last twenty years.SROI models and tools
5 II. Participatory Approach -Stakeholders The following type of stakeholders have been involved:Project PartnersSocial enterprisesBanks/Credit InstitutionsThese stakeholders were involved through a number of different tools:QuestionnairesOne-to-one interviewsFocus groups
6 Main objectives and characteristics of the tool The general goal of the model is to measure the social value produced by a social enterprise as a whole or by a specific project.The primary goal of the system is to give funding entities, particularly public bodies, a tool for evaluating the social value created by social enterprises.Ex-ante evaluation of social impactSimple and easy to use
7 The tool for measuring social added value The Measurement Tool elaborate consists of two main parts:The first part is designed to "measure" the social value produced by the social enterprise as a whole (based on Social accounting)The second part is intended for evaluating mainly single projects (based on SROI)Each part could be applied at different levels of depth analysis, based on the context (i.e. amount of the financial grant, size of the social enterprise, etc..)
8 The system takes into considerations the following dimensions: PART I- Evaluation of the overall social added value produced by the enterprise – The dimensionsThe system takes into considerations the following dimensions:Financial and economic soundnessDemocracy and governanceOrganizational functioningProfessional resourcesEqual opportunitiesSocio-occupational integrationClientsNetworks and partnersProject design and innovation abilitiesEnvironmental sustainabilityServices and interventionsEach of the above dimensions is made up of further sub-dimensions.
9 Dimension: Socio-occupational integration PART I- Evaluation of the overall social added value produced by the enterprise – The sub-dimensionsDimension: Socio-occupational integrationSub-dimension: Effectiveness of job placementsSub-dimension: Quality of job placementsINDICATORDEFINITIONJob placement cases of persons from disadvantaged groupsTotal job placements________________________Total workersJob placements drop-outsN. of drop-outs during the given yearTotal n. of placements in the yearINDICATORDEFINITIONPlacement tutorHas a tutor been identified for each job placement? (Yes/No)Skills evaluationHas a skills evaluatio plan been drafted? (Yes/No)
10 PART II – Evaluation of the social added value produced by single projects (SROI-Social Return On Investment)SROI is an analytic tool developed recently in the United States for measuring and accounting for the social, economic and environmental impact created by organisations.This approach aims to reveal the value of changes experienced by stakeholders whether those changes have been priced in market transaction or not and helps identify which changes are significant. It uses financial proxies to help reveal the value and as part of the process of deciding which changes are significant.It allows for the calculation of a benefit to cost ratio. A 3:1 ratio indicates that an investment of 1€ delivers 3€ of social value.
11 Testing the toolPart I – Evaluation of the social added value produced by the enterpriseIdentifying a system of weightsBenchmarkingBuilding a specific softwareModifying the evaluation system if necessaryPart II – Evaluation of the social added value produced by single projectsSROI case-study on a real social inclusion project in LombardyComparative analysis
12 Conclusions from the experience European InstitutionsSocial value measurement tools could be a practice to be emphasised within the Social Business Initiative promoted by the European Commission.The European Commission could promote social value as an EU horizontal issue in Structural Funds implementation (similarly to equal opportunities, environment etc.).
13 Conclusions from the experience ESF Managing Authorities and Public Authorities in generalIn addition to evaluation systems already used in ESF Operational Programmes, Managing authorities could introduce elements of social added value measurement. Such element introduced in ESF Operational Programmes would be based on the specific regional and national needs.Managing Authorities and public authorities could invest resources from their ESF Operational Programmes to fund training and capacity building so as to endow public authorities with effective evaluation systems assessing social value.The Commission proposal for the ESF regulation states that “at least 20% of the ESF allocation should be dedicated to promoting social inclusion and combating poverty” (COM(2011) 607 fin/2). Managing Authorities could use tools for measuring social added value to implement, verify and demonstrate the effective implementation of such new rule
14 Conclusions from the experience Social EnterprisesSocial enterprises can use social value measurement tools to improve the quality and effectiveness of their services, to promote stakeholders’ engagement and to better communicate their business to public and private investors.