Social Impact Assessment
Social Impact Assessment is a framework for catalyzing transformational change by empowering entrants to re-think how their business model can address root causes of systemic social problems.
To fulfill the baseline entry requirements of GSVC, all entrant business plans must include a social impact assessment section. This section can be as detailed as entrants wish, but will be judged according to the following criteria:
- Social Value Proposition
- The social value proposition and theory of change are clear and compelling.
- The social value proposition is central to the business model.
- Measurement of Social Value
- The social impact indicators strongly relate to the ultimate desired outcome.
- The plan for measurement of the social impact indicators is feasible.
- Social Innovation
- The venture addresses the root cause of the targeted issue.
- The venture generates relative value above and beyond current state and/or next best available option.
- The venture recognizes potential unintended and/or negative consequences.
- The social impact is supported by a sustainable business model.
Please reference the glossary for definitions of unfamiliar terms.
GSVC SIA Approach: Define, Quantify, and Track
There are three steps to the Social Impact Assessment.
- DEFINE: Define the venture’s social value proposition. Use the Theory of Change methodology to describe why the ventures activities will lead to the ultimate desired outcomes. Use the Impact Value Chain to describe how the venture’s activities will lead to the desired outcomes.
- QUANTIFY: Identify three measurable social impact indicators that will most strongly correlate with the desired social outcomes. Explain how these indicators will be tracked as part of the venture’s normal business operations. Provide calculations for these indicators and incorporate them into the Impact Value Chain. (Selection of social impact indicators from the Impact Reporting and Investment Standards (IRIS) is encouraged.)
- TRACK: Explain how the chosen indicators will be tracked as part of the venture’s ongoing business operations. Outline a clear and feasible plan for impact measurement and evaluation, including ongoing monitoring of unintended and/or negative consequences of the business.
Please read the 2014 GSVC SIA guidelines for additional guidance.