Social Impact Assessment Frameworks, Techniques and Standards
Social impact assessment (SIA) requires a structured approach to ensure that the process of capturing data is strategic and aligned with an organization’s mission. This chapter explores the primary frameworks used by social enterprises, including the Theory of Change (ToC) and the Logic Model, alongside national and international guidelines like NGRBC, IRIS+, and UNGC.
6.1 Introduction to Social Impact Assessment Frameworks
A guiding framework provides a roadmap for organizations to navigate the complexities of measuring and communicating their contributions to social change. While the Theory of Change (ToC) and the Logic Model are related, they differ in philosophy and structure.
Comparison: Theory of Change vs. Logic Model
| Feature | Theory of Change (ToC) | Logic Model |
|---|---|---|
| Philosophical Approach | Narrative-driven; emphasizes underlying theories, assumptions, and causal pathways. | Visually oriented; focuses on linear relationships between inputs, activities, and results. |
| Causality | Explicitly highlights causal links between activities and long-term outcomes. | Presents a straightforward, often simplified, cause-and-effect sequence. |
| Flexibility | Highly flexible and adaptable; encourages ongoing reflection and adjustment. | Often perceived as a static representation of a program. |
| Visuals | Typically involves a detailed narrative or complex map. | Uses a linear diagram to show components in a sequential manner. |
| Scope of Context | Considers the broader context and external factors influencing change. | Focuses primarily on internal program components. |
Key Takeaway: Organizations often use a combination of both frameworks to capture the strengths of narrative depth and linear clarity.
6.1.1 Theory of Change (ToC)
The Theory of Change is a structured thinking process that turns theories about what needs to change into a “causal pathway”. It is not a general theory but is specific to the project’s unique initiatives.
The Theory of Change Process
- Situation Analysis: Identify the core problem the intervention seeks to address.
- Information Gathering: Collect data on inputs, outputs, outcomes, and impact from primary (stakeholder feedback) and secondary sources (research).
- Backward Mapping: Work backward from the ultimate vision to determine all necessary preconditions.
- Incorporating Context: Identify external factors and assumptions that may hinder or help the change process.
Practical Example: Youth Unemployment Project
- Problem Statement: Youth lack technical skills and access to jobs.
- Long-Term Goal: 80% of rural youth (18–25 years) secure stable jobs in five years.
- Inputs: Financial support from donors and partnerships with local businesses.
- Activities: Design vocational training, conduct soft-skills workshops, and facilitate internships.
- Outputs: 1,000 youth trained annually; 50 employer partnerships formed.
- Outcomes: 80% report improved skills; 50% secure internships; 70% transition to permanent roles.
- Impact: Increased income levels and 50% reduction in unemployment in target areas.
- Assumptions: Youth are motivated to attend; skills match market needs; donors continue support.
- Risks: Low engagement; mismatched training content; economic downturns.
6.1.2 Importance of Theory of Change in Analysis
The ToC is critical for several stages of social intervention:
- Strategic Planning: Helps identify needs, opportunities, and the steps to achieve the desired state.
- Implementation Monitoring: Tracks indicators throughout the project lifecycle.
- Impact Evaluation: Supports evaluators in identifying specific evaluation questions where evidence is lacking.
- Reporting: Provides a graphical map showing the link between inputs and the final end result.
6.2 Other Guidelines and Tools for Impact Assessment
Various national and international standards provide frameworks for different stakeholders to measure social impact.
6.2.1 National Guidelines on Responsible Business Conduct (NGRBC)
In 2011, the Ministry of Corporate Affairs (MCA) issued National Voluntary Guidelines (NVGs), which were revised in 2015/2018 to align with SDGs.
The Nine Principles of NGRBC:
- Integrity: Businesses should conduct themselves ethically, transparently, and accountably.
- Sustainable Goods: Provide goods and services that are safe and sustainable.
- Well-being: Promote the well-being of all employees, including those in value chains.
- Stakeholder Interests: Respect the interests of and be responsive to all stakeholders.
- Human Rights: Respect and promote human rights.
- Environment: Protect and restore the environment.
- Policy Influencing: Engage in public and regulatory policy in a responsible manner.
- Inclusive Growth: Promote inclusive growth and equitable development.
- Consumer Value: Engage with and provide value to consumers responsibly.
6.2.2 Frameworks by the Global Investing Community
A. IRIS+ (Global Impact Investing Network - GIIN)
IRIS+ is an impact accounting system used by investors to measure and optimize performance. It uses the Impact Management Project (IMP) framework based on five dimensions:
| Dimension | Definition | Data Categories |
|---|---|---|
| Who | Who experiences the effect and how underserved are they? | Stakeholder type, geography, baseline status. |
| How Much | How much effect occurs (scale, depth, duration)? | Number of people reached; degree and duration of change. |
| What | What outcomes are contributed to and their importance? | Outcome level, threshold, and SDG alignment. |
| Contribution | How does the effect compare to what would have happened anyway? | Estimated degree of change factoring in external trends. |
| Risk | What risk factors could cause a different outcome? | Evidence risk, external risk, execution risk, etc. |
B. Global Impact Investment Rating System (GIIRS)
GIIRS is a transparent system analogous to Morningstar ratings for assessing companies and funds. It uses a rating methodology to issue a composite score for social and environmental performance, facilitating comparisons across different firm sizes.
C. Global Reporting Initiative (GRI)
Established in 1997, GRI standards enhance transparency in economic, environmental, and social performance.
- Universal Standards: Applicable to all organizations.
- Sector Standards: Specific impacts for 40 sectors (e.g., agriculture, oil and gas).
- Topic Standards: Disclosures for specific issues (e.g., waste management, tax, health).
6.2.3 Frameworks by Multi-lateral Development Agencies
UN Global Compact (UNGC)
UNGC guides companies in achieving SDGs by aligning strategies with ten core principles.
Ten Principles of UNGC:
- Human Rights: Support international human rights and avoid complicity in abuses.
- Labour: Uphold freedom of association, eliminate forced labour, abolish child labour, and eliminate discrimination.
- Environment: Support a precautionary approach, promote environmental responsibility, and diffuse eco-friendly technologies.
- Anti-Corruption: Work against all forms of corruption, including extortion and bribery.
Key Terms for Exam Preparation
- Causal Pathway: The step-by-step sequence of results in a Theory of Change.
- Backward Mapping: The process of planning from the final goal back to initial activities.
- NGRBC: India’s national guidelines for responsible business conduct.
- GIIN: Global Impact Investing Network, the provider of IRIS+.
- SROI (Social Return on Investment): A method of monetizing social impact (calculated via impact maps).
Key Performance Formulas
- Investment Efficiency: Total project cost / Number of families benefited.
- Project Timeliness: (Number of families benefited on time / Total number of families) * 100.
- Quality of Housing Improvement: (Number of families with significantly improved housing conditions / Total number of families) * 100.