Social Impact Assessment (SIA) for Hong Kong

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Prepared by: Alvin Cheung, Senior Researcher Natalie Lau, Assistant Researcher

Relationship between SIA and CSV

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Photo Source: Catalyst.org, Inc. and Bupa

Youcan’tmanagewhatyoudon’tmeasure.

PETER DRUCKERFather of ModernManagement

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W e n e e d m o r ecompanies to measureandvaluetheirimpactsand dependencies onnatural capital, andcollaborate to reducethem.

PAUL POLMANCEO, Unilever

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M y c o l l e a g u e s a n d Iunderstood that ongoingevalua=on and measurementwould ul=mately prove thati n v e s tmen t i n s o c i e t a lcondi=onsmateriallyenhancesacompany’scompe==veness

Janet VoûteChairman of Creating Shared Value Council, Nestle

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-HuffingtonPost-FSG

Relationship between SIA and CSV

1. Initial Idea of business strategy

2. Use SIA to appraise the idea

3. Implementation 4. Use SIA to monitor the process

5. Adjustment of the existing strategy

3 Source: HM Treasury

Importance of Social Impact Assessment

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Government

Corporates

Nonprofits/Social

Enterprises

By incorporating SIA into public policies, our government can: •  Help examine the cost of dealing with potential social problems, and; •  Allow greater transparency of public policies

By measuring the tangible benefits, SIA can help nonprofits/social enterprises to: •  Provide proofs to stakeholders e.g. government and investors regarding their

impacts on society

By combining the values generated to both the company and the community, SIA can help corporates to: •  Develop profitable business strategies with social benefits •  Achieve both ‘Corporate Social Responsibility’ and ‘Creating Shared Value’

Common Frameworks Available in HK

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SIA Framework of The Hong Kong Council of Social Service

Social Impact Measurement of Fullness Social Enterprises Society

Social Enterprise Endorsement Scheme

B Impact Assessment

Social Return on Investment

Total Impact Measurement and Management of PwC

True Value Model of KPMG

BACK Model of The Hong Kong Jockey Club

BACK Model of The Hong Kong Jockey Club

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Knowledge

Condi,onSa,sfac,on

Social Impact Measurement of Fullness Social Enterprise Society (FSES)

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ChangeofA+tudeand

Skills

Sa4sfac4ononAc4vi4es

ChangeofBehavior

InvestmentReturnandResults

KirkpatrickModelofTrainingEvalua4on

Social Enterprise Endorsement Scheme (SEE Mark)

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Incuba4ng Start-up/SmallScale

Intermediate Advanced

Social Return on Investment (SROI)

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Be transparent

Only include what is material

Do not over-claim

UnderstandWhat

Changes

InvolveStakehold-

ers

Value the things that

matter

Verify the results

TheSevenPrinciplesofSocialValue

Total Impact Measurement and Management of PwC

10 Op4on1:ImportBarley Op4on2:Growandsourcelocally

True Value Model of KPMG

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EconomicRevenue/Cost

SocialRevenue/Cost

EnvironmentalRevenue/Cost

TrueEarnings

SIA Framework of HKCSS

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Individual

Project/Organiza,on

Social/Community

•  SocialPar,cipa,on•  SocialCapacityBuilding

andEmpowerment

•  QualityofLife•  SelfEsteem

•  Sustainability•  SkillsEnhancement

Comparison of Frameworks

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Comparison of Frameworks

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A1

A2

B1

B2

B3

MappingOutcomesandUnderstandingChangePre-determinedKPIV.S.EncouragingTailorAssessment

AscertainingtheRela4veImportanceofOutcomesBenchmarkingwithscoringsystemV.S.Par,alMone,za,onV.S.FullMone,za,on

StakeholderEngagementExplicitlyRequiredV.S.NotExplicitlyRequired,butEncouraged

BenchmarkingandDoNotOver-claimExplicitlyMen,onedV.S.NotExplicitlyMen,oned

MaterialityReflectedintheScopeV.S.GuidelineProvided