Social Value and Social Return on Investment

• Název práce v češtině: Společenská hodnota a její měření pomocí metody Social Return on Investment
• Název v anglickém jazyce: Social Value and Social Return on Investment
• Klíčová slova: social return on investment, programová evaluace, evaluační výzkum, socialní investice, společenská hodnota, neziskový sektor, cost benefit analýza
• Klíčová slova anglicky: social return on investment, program evaluation, evaluation research, social investment, social value, nonprofit, cost benefit analysis, funding
• Akademický rok vypsání: 2018/2019
• Typ práce: diplomová práce
• Jazyk práce: angličtina
• Ústav: Katedra veřejné a sociální politiky (23-KVSP)
• Vedoucí / školitel: Mgr. Martin Nekola, Ph.D.
• Řešitel: skrytý - zadáno vedoucím/školitelem
• Datum přihlášení: 27.05.2019
• Datum zadání: 27.05.2019
• Datum a čas obhajoby: 15.09.2020 09:00
• Místo konání obhajoby: Pekařská 16, JPEK212, 212, Malá učebna, 2.patro
• Datum odevzdání elektronické podoby: 25.07.2020
• Datum proběhlé obhajoby: 15.09.2020
• Oponenti: Mgr. Alexandr Kasal, Ph.D.

Zásady pro vypracování

Objectives (their direct link to the formulated research problem)
• Review and critically assess social value through the lens of major theoretical/conceptual approaches from economics, non-profit management and other related fields.
• Describe and assess different methods of measuring social value with emphasis on Social Return on Investment methodology (SROI).
• Carry out a case study – application of SROI in selected non-profit organization in order to better understand its strength and weaknesses.

Research questions
What is social value?
Because there is no consensus on the definition of social value, a critical analysis of previous literature is necessary. Attempting to define social value will create a framework through which to approach the concept of social value.
How is social value generated?
Third sector/nonprofit organizations and increasingly market based private organizations are key creators of social value. What leadership and administrative practices drive these organizations to create social value?
How can social value be measured?
Social Return on Investment (SROI) is one of the most prominent ways to measure social value. What are its limitations and applications?
What is the impact of social value?
How does social value impact decisions-making for private and public funding sources?

Theoretical concept –
Social Enterprise
There is increasing literature regarding market-based organizations generating social value. The study of so-called “social enterprises” uses leadership, strategic management, and administrative sciences to analyze a growing market approach to social value.
Nonprofit Management
As third sector/nonprofits are a key creator of social value, the largest body of literature revolves around nonprofit management. This is a critical lens through which to view social value.
Program Evaluation
In order to measure social value, program evaluation methodology will be applied. Social Return on Investment (SROI) uses a modified cost benefit analysis model.

Research plan -
• Complete SROI training in London (summer 2019)
• Choose a nonprofit to evaluate; secure their participation/consent (summer/fall 2019)
• Research case studies, academic evaluation of SROI (fall 2019)
• Conduct SROI evaluation of nonprofit (fall-spring 2019/20)
• Write SROI report (early spring 2020)
• Write Thesis (April/May 2020)

Seznam odborné literatury

Arvidson, M. (2013). Valuing the social? The nature and controversies of measuring social return on investment. The Policy Press .
Brest, P. (2019). How Investors Can (and Can’t) Create Social Value. Journal of Management Studies , 205-233.
Brown, W. (2017). Classification of Program Activities: How Nonprofits Create Social Value. Administrative Sciences .
Cordes, J. (2017). Using cost-benefit analysis and social return on investment to evaluate the impact of social enterprise: Promises, implementation, and limiatations. Evaluation and Program Planning , 98-104.
Emerson, J. a. (2000). Social Return on Investment: Exploring Aspects of Value Creation in the Nonprofit Secrot. Investor Perspectives , 132-173.
Felicio, J. A. (2013). Social value and organizational performance in non-profit social organizations: Social entrepreneurship, leadership, and socioeconomic context effects. Journal of Business Research , 2139-2146.
Herman, P. M. (2009). Are cost-inclusive evaluations worth the effort? Evaluation and Program Planning , 55-61.
Kerlin, J. (2017). Shaping Social Enterprise. Bingley: Emerald Publishing.
Kiser, C. (2014). Creating Social Value. Sheffield: Greanleaf Publishing.
Nicholls, J. a. (2012). A Guide to Social Return on Investment. London: The SROI Network.
OECD. (2017). Boosting Social Enterprise. OECD.
OECD. (2009). The Changing boundaries of social enterprise. OECD.
Quelin, B. V. (2017). Public-Private Collaboration, Hybridity and Social Value: Towards New Theoretical Perspectives. Journal of Management Studies .
Seelos, C. (2017). Innovation and Scaling for Impact. Stanford: Stanford University Press.
Seo, J. (2018). Resource dependence patters, goal change, and social value in nonprofits. International Review of Administrative Sciences , 1-20.
Shoko, K. (2018). Insights for Measuring Social Value: Classification of Measures Related to the Capabilities Approach. International Society for Third Sector Research , 558-573.
Walk, M. a. (2015). Social Return on Investment Analysis: A CASE STUDY OF A JOB AND SKILLS TRAINING PROGRAM OFFERED BY A SOCIAL ENTERPRISE. Nonprofit Management & Leadership , 129-144.
Wikipedia. (n.d.). Value (economics). Retrieved May 21, 2019, from Wikipedia: https://en.wikipedia.org/wiki/Value_(economics)

Předběžná náplň práce

A. Research problem definition:
What is Social Value?
The definition of value is relative. In the simplest economic terms, value is the benefit you get for what you paid. The consumer’s willingness to pay, implies that they value the good more than the actual market price. (Wikipedia) Economic value is measured in clear, monetary terms. Businesses, investments, and other economic activities measure value in this way, all with the general concern of profitability. Particularly with investment, the singular goal is to maximize financial returns. (Brest, 2019)
But for so many organizations, the returns they create are not measured in monetary terms. This includes public, nonprofit, third sector, or other “social enterprise” organizations that create “products” far more difficult to quantify. This could include a protected forest, anti-racism efforts, gender equality advocacy, cultural preservation, animal rights, a public toilet, or any number of other efforts. These things have value to the people that use- or participate in them. But the returns are not profitability, its inclusion, access, and living in a better and more just society. It is in this realm that social value exists and where many organizations justify their work. (Emerson, 2000)
There is no consensus on the definition of social value. Definitions vary based on the scientific discipline: strategic management, leadership, public management, economics, evaluation, social sciences, etc. (Shoko, 2018)
Emerson contends that this “inability to define and understand social and economic value has made for a serious information gap and a lack of objective performance assessments.” (Emerson, 2000) Many organizations are thus not able to properly estimate their contribution to society and such benefits go unrecognized.

Who creates social value?
Social Enterprise
In economics, there is a growing trend to align investment with social values. Socially motivated investment attempts to create social value through impact: enterprise impact (investee company must produce the social outcome); investment impact (the investment must increase the production of those outcomes) (Brest, 2019)
Social value creation is also framed as company management practices, sometimes referred to as corporate social responsibility. (Kiser, 2014)Through innovative business management techniques, corporations are moving towards business models that consider their environmental and social impact.
Third Sector, Nonprofits
In the UK “third sector” organizations are creating social value (Arvidson, 2013), while in the US these are referred to as nonprofit organizations (Emerson, 2000). In these liberal welfare states, it is particularly important to have robust civic organizations to deliver services not (or inadequately) provided by the government. State services are often contracted out to these private organizations by way of grants and other funding. These organizations justify their existence by creating hard-to-quantify returns to society.

How is social value measured?
There are number of approaches to measure social value. Kato counts approximately thirty methods. The most prominent of which is Social Return on Investment (SROI).
SROI is based on other forms of cost-inclusive evaluation, such as cost-benefit analysis (CBA). (Cordes, 2017) The SROI methodology shares many commonalities with these various types of cost analysis (Herman, 2009); it is essentially a systematic process to calculate the benefits and costs of a program which, in turn, will be used by decision-makers such as the government and funders. (Walk, 2015)

SROI attaches monetary values to returns that are not generally measured in dollar amounts, such as the health or well-being of the homeless or other community members. Monetizing the social value of programs and projects can make decision-making easier. “SROI is about value, rather than money. Money is simply a common unit and as such is a useful and widely accepted way of conveying value.” (Nicholls, 2012)

Research Problem Definition
The funding landscape for nonprofit organizations has shifted from charity-based to outcome-focused. (Emerson, 2000) Governments and foundations seek to maximize their funding impact. How can nonprofit organizations use the concept of social value to estimate their contribution to society? How can decision-makers use social value to make funding decisions? How can social value be measured?

Předběžná náplň práce v anglickém jazyce

A. Research problem definition:
What is Social Value?
The definition of value is relative. In the simplest economic terms, value is the benefit you get for what you paid. The consumer’s willingness to pay, implies that they value the good more than the actual market price. (Wikipedia) Economic value is measured in clear, monetary terms. Businesses, investments, and other economic activities measure value in this way, all with the general concern of profitability. Particularly with investment, the singular goal is to maximize financial returns. (Brest, 2019)
But for so many organizations, the returns they create are not measured in monetary terms. This includes public, nonprofit, third sector, or other “social enterprise” organizations that create “products” far more difficult to quantify. This could include a protected forest, anti-racism efforts, gender equality advocacy, cultural preservation, animal rights, a public toilet, or any number of other efforts. These things have value to the people that use- or participate in them. But the returns are not profitability, its inclusion, access, and living in a better and more just society. It is in this realm that social value exists and where many organizations justify their work. (Emerson, 2000)
There is no consensus on the definition of social value. Definitions vary based on the scientific discipline: strategic management, leadership, public management, economics, evaluation, social sciences, etc. (Shoko, 2018)
Emerson contends that this “inability to define and understand social and economic value has made for a serious information gap and a lack of objective performance assessments.” (Emerson, 2000) Many organizations are thus not able to properly estimate their contribution to society and such benefits go unrecognized.

Who creates social value?
Social Enterprise
In economics, there is a growing trend to align investment with social values. Socially motivated investment attempts to create social value through impact: enterprise impact (investee company must produce the social outcome); investment impact (the investment must increase the production of those outcomes) (Brest, 2019)
Social value creation is also framed as company management practices, sometimes referred to as corporate social responsibility. (Kiser, 2014)Through innovative business management techniques, corporations are moving towards business models that consider their environmental and social impact.
Third Sector, Nonprofits
In the UK “third sector” organizations are creating social value (Arvidson, 2013), while in the US these are referred to as nonprofit organizations (Emerson, 2000). In these liberal welfare states, it is particularly important to have robust civic organizations to deliver services not (or inadequately) provided by the government. State services are often contracted out to these private organizations by way of grants and other funding. These organizations justify their existence by creating hard-to-quantify returns to society.

How is social value measured?
There are number of approaches to measure social value. Kato counts approximately thirty methods. The most prominent of which is Social Return on Investment (SROI).
SROI is based on other forms of cost-inclusive evaluation, such as cost-benefit analysis (CBA). (Cordes, 2017) The SROI methodology shares many commonalities with these various types of cost analysis (Herman, 2009); it is essentially a systematic process to calculate the benefits and costs of a program which, in turn, will be used by decision-makers such as the government and funders. (Walk, 2015)

SROI attaches monetary values to returns that are not generally measured in dollar amounts, such as the health or well-being of the homeless or other community members. Monetizing the social value of programs and projects can make decision-making easier. “SROI is about value, rather than money. Money is simply a common unit and as such is a useful and widely accepted way of conveying value.” (Nicholls, 2012)

Research Problem Definition
The funding landscape for nonprofit organizations has shifted from charity-based to outcome-focused. (Emerson, 2000) Governments and foundations seek to maximize their funding impact. How can nonprofit organizations use the concept of social value to estimate their contribution to society? How can decision-makers use social value to make funding decisions? How can social value be measured?