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Social Impact Assessment

Learn about the importance and process of social impact assessment with this comprehensive guide. Complete guide on all ranges of social impact assessment tools.

Introduction

Social impact assessment

Social Impact Assessment is a structured process used to identify and evaluate the potential positive and negative impacts of a project, grant, or investment on a community or group of individuals. It typically includes three components: an Impact Framework, Assessment Results, and Performance Evaluation. As a rapidly evolving practice, social impact assessment can be challenging for organizations to navigate, especially regarding data collection and analysis. However, it is a crucial tool for ensuring that development projects are responsible and sustainable and for identifying ways to maximize positive impacts and minimize negative ones. This guide will provide a comprehensive overview of social impact assessment, including how to establish an impact framework, track and analyze data, and effectively communicate the results of your assessment. Whether you are new to a social impact assessment or an experienced practitioner, this resource will provide valuable insights and strategies for improving the effectiveness of your impact assessment process.

Read More: How can social impact data be used to measure and manage the impact?

 

Free

Social impact assessment training

Social impact assessment is the foundation for understanding the social impact of programs, products, or services. 

  1. Introduction to the theory of change [7 min]
  2. Introduction to impact strategy  [7 min]
  3. Demonstrate impact effectively [7 min]
  4. Impact, Data, Analytics [60 min] ** Highly Recommended **

Social impact assessment software

Social impact assessment software is a tool that helps organizations evaluate the social, environmental, and economic impacts of their activities. Sopact, our SAAS-based software, provides a comprehensive solution for an impact assessment that can help you take actionable steps toward improving your social impact.

The benefits of using social impact assessment software are many. By measuring and analyzing your impact, you can make better decisions, improve your programs, and demonstrate your impact to stakeholders. However, there are also challenges associated with using impact assessment software, such as data collection and analysis and integrating impact measurement into your organization's culture.

At Sopact, we understand these challenges and have developed an impact strategy app that can help you overcome them. Our software is user-friendly and customizable and comes with a library of impact strategies, training resources, and examples. With Sopact, you can develop a clear impact strategy, measure your impact, and take action to improve your outcomes.

Are you ready to take your social impact to the next level? Visit our website to watch our impact strategy video, access our library of strategies, and learn more about our training and examples. With Sopact, you can make a real difference in the world.

  • 01 Impact Framework
  • 02 Assessment Results
  • 03 Performance Evaluation
An outlined method for a social impact assessment that explains:
  • the organization's reasons for measuring the impact the documentation of the impact hypothesis (AIM Volume 1: Groundwork)
    Mission, Vision, Goals
    Program Design
    Theory of Change
    and how they measure the impact
  • The metrics used - custom or standard (IRIS, Guidestar, etc.)
    the tools for forms/surveys and data management (TurboMetrics Impact Cloud; Salesforce)
  • Whom they are collecting the data from
    the data reporting frequency, etc.
Data visualization and demonstration for quick insights
causality and other contextual support narratives
High level list of

Social impact assessment tools

Social impact assessment (SIA) tools evaluate the potential impacts of a project, policy, program, or activity on various stakeholders and the environment. These tools can help identify and mitigate negative and maximize positive impacts and can be used at various stages of the project lifecycle. Here is a list of different types of SIA tools with brief descriptions, pros, and cons:

  • Stakeholder analysis: This tool involves identifying and analyzing the interests and influence of different groups of people who may be affected by or have an impact on the project. Pros: helps to identify key stakeholders and their needs and concerns; helps to build consensus and support for the project. Cons: can be time-consuming and resource-intensive; may only be feasible in some contexts.

  • Environmental impact assessment (EIA): This tool involves analyzing the potential environmental impacts of a project and identifying measures to minimize or mitigate those impacts. Pros: helps to protect the environment and natural resources; can be required by law in some jurisdictions. Cons: can be complex and costly; may not adequately address social or cultural impacts.

  • Social impact assessment (SIA): This tool involves analyzing the potential social impacts of a project and identifying measures to minimize or mitigate those impacts. Pros: helps to ensure that projects consider the needs and concerns of local communities and other stakeholders; can help to build support and consensus for the project. Cons: can be complex and costly; may not adequately address environmental or economic impacts.

  • Multicriteria analysis (MCA): This tool involves evaluating a project using a set of predetermined criteria, such as environmental, social, economic, and cultural impacts. Pros: allows for a comprehensive assessment of a project's impacts; helps to identify trade-offs and prioritize competing objectives. Cons: can be time-consuming and resource-intensive; may require specialized expertise.

  • Benefit-cost analysis (BCA): This tool involves evaluating the costs and benefits of a project in monetary terms and comparing them to determine the net benefit or cost to society. Pros: allows for a quantifiable comparison of a project's costs and benefits; can help prioritize competing tasks. Cons: may not capture all costs and benefits, particularly those that are difficult to quantify or monetize; may need to consider distributional impacts or values other than economic efficiency adequately.

  • Cost-effectiveness analysis (CEA): This tool involves evaluating the costs and outcomes of different options or alternatives and choosing the one that achieves the desired outcomes at the lowest price. Pros: helps to identify the most efficient use of resources; can be used to compare different options or alternatives. Cons: may not capture all costs and benefits, particularly those difficult to quantify or monetize; may not adequately consider distributional impacts or values other than economic efficiency.

  • Life cycle assessment (LCA): This tool analyzes a product's or service's environmental impacts over its entire life cycle, from raw material extraction to disposal. Pros: helps identify and prioritize improvement areas; can be used to compare different options or alternatives. Cons: can be time-consuming and resource-intensive; may require specialized expertise; may not adequately consider social or cultural impacts.

  • Sustainable livelihoods analysis (SLA): This tool involves analyzing the economic, social, and environmental factors that influence the well-being and livelihoods of people in a particular community or region. Pros: helps to identify the factors that contribute to sustainable livelihoods; can be used to design interventions that address the root causes of poverty and vulnerability. Cons: can be time-consuming and resource-intensive; may require specialized expertise; may not adequately consider cultural or political factors.

 

Measuring social impact tools

Here is an in-depth resource guide for social impact assessment (SIA) tools, including information on survey tools, monitoring and evaluation tools, impact measurement and management tools, and others:

  • Survey tools: These tools are used to collect data from stakeholders through surveys, either online or offline. Online survey tools, such as Google Forms or SurveyMonkey, allow easy distribution and data collection via the internet. Offline survey tools, such as paper-based surveys or interviews, may be used when internet access is limited. Pros: Surveys are a widely used and well-established method for collecting data; they can be customized to fit the project's needs. Cons: It may not be representative of the entire population or may suffer from low response rates; may not capture in-depth or nuanced information.
  • SMS-based tools: These tools use text messaging to collect data from stakeholders. Pros: Allows easy data collection from mobile phone users; can reach a wide range of stakeholders. Cons: It may be limited to those with access to mobile phones; it may not capture in-depth or nuanced information.
  • Phone-based tools: These tools use phone calls to collect data from stakeholders. Pros: Allows for in-depth and nuanced information to be collected; can reach a wide range of stakeholders. Cons: It may be time-consuming and resource-intensive; it may only be feasible in some contexts.
  • Monitoring and evaluation (M&E) tools: These tools are used to track progress and evaluate the effectiveness of a project. Project-level M&E tools focus on specific outcomes or indicators, while comprehensive M&E tools consider a wider range of impacts. Pros: Helps identify areas for improvement and track progress over time; can be customized to fit the project's needs. Cons: It may be time-consuming and resource-intensive and require specialized expertise.
  • Impact measurement and management (IMM) tools: These tools are used to measure and manage the impacts of a project, program, or organization. Pros: Helps to identify and prioritize impacts; allows for ongoing tracking and management of impacts. Cons: It may be time-consuming and resource-intensive and require specialized expertise.
  • Impact rating tools assign a rating or score to a project or organization based on its impact. Pros: Allows for easy comparison of different projects or organizations; can help to prioritize projects or investments. Cons: It may be subjective or based on limited information; it may need to consider the context or complexity of a project adequately.
  • Impact scorecard tools involve evaluating a project or organization using a set of predetermined criteria or indicators. Pros: Allows for a comprehensive assessment of a project or organization's impacts; helps to identify areas for improvement. Cons: It may be time-consuming and resource-intensive and require specialized expertise.
  • SROI-based tools: These tools involve analyzing a project or organization's social, environmental, and economic impacts using the principles of social return on investment (SROI). Pros: Allows for a comprehensive assessment of a project or organization's impacts; helps to identify the financial value of social and environmental impacts. Cons: May be time-consuming and resource-intensive; may require specialized expertise

Offline Data Collection Tools

On the other hand, offline data collection tools allow users to collect data without the use of the internet. These tools may involve paper-based surveys, interviews, or other forms of data collection that do not require an internet connection. Examples of offline data collection tools include paper-based surveys or interviews or data collection using handheld devices such as tablets or smartphones without an internet connection.

Read More: How to set up the groundwork for effective social impact measurement?

Connected Beneficiary

Online Data Collection

Online data collection tools are tools that allow users to collect data from respondents via the internet. These tools typically involve creating and distributing surveys or other data collection forms and collecting and analyzing responses electronically. Examples of online data collection tools include SurveyMonkey, Qualtrics, and SurveyGizmo.

  • SurveyMonkey: SurveyMonkey is a popular online survey tool that allows users to create and distribute surveys, collect responses, and analyze data. Pros: Easy to use; offers a range of customization options; allows for data collection from various devices. Cons: It may not be suitable for more complex or in-depth assessments; it may require a subscription for certain features. Website: https://www.surveymonkey.com/

  • Qualtrics: Qualtrics is a comprehensive survey and data analysis platform that allows users to create and distribute surveys, collect responses and analyze data. Pros: Offers a range of customization options; allows for data collection from various devices; integrates with other tools and platforms. Cons: It may require a subscription for certain features; it may be more expensive than other options. Website: https://www.qualtrics.com/

  • SurveyGizmo: SurveyGizmo is a survey and data analysis platform that allows users to create and distribute surveys, collect responses, and analyze data. Pros: Offers a range of customization options; allows for data collection from various devices; integrates with other tools and platforms. Cons: It may require a subscription for certain features; it may be more expensive than other options. Website: https://www.surveygizmo.com/

*It is worth noting that many of the tools mentioned in the Offline Data Collection Tools section also have online collection capabilities.

SMS & Voice based impact assessment tools

Students or beneficiary accessible through phone but not using email

In developed country students tend to be often easier to engage SMS instead of email.  In a developing country such as Bangladesh, India, or China factories, many laborers can only be accessed using a feature phone or smartphone in anonymous ways.

Depending on the situation, API-based platforms such as Twilio can be used to access beneficiaries or stakeholders.

List of SMS APIs

If you have not integrated your business systems with a functional SMS API, your marketing strategies are not up-to-date, and you might lose your clients to competitors.

The following list illustrates the most popular SMS APIs & SMS API providers that you can try today to make your SMS marketing campaigns effective and superior:

1. Plivo: Plivo is a global SMS web service API (and Voice calls) for all businesses.

2. Telegram API: Telegram API is a free texting API that integrates secure messaging into your app.

3. Twilio: The Twilio API enables you to make voice calls, send SMS, and even MMS

4. MessageBird SMS Gateway API: The SMS Gateway API by MessageBird provides you with a platform for sending and receiving text messages (SMS) from all over the globe.

5. Telnyx API: Telnyx is a VoIP telecom service provider that uses a cloud-based platform to access carrier-grade voice services via the internet.

6. ClickSend SMS API

7. M-OTP API

Broad Level Comparision

Social impact assessment - impact rating and scorecard

First-generation impact assessment platforms focus on gathering governance, environmental, and social policies to assess entrepreneurs or Small Medium Business (SMB) or Small Growing Business (SGB).  Let's look at three examples -

1. MIX Markets: For Microfinance Institutes

2. AERIS Cloud: For CDFI Institutes

3. B-Assessment:  Impact on its workers, community, environment, and customers.

4. B-Analytics: For investors, supply chain managers, business networks, and governments in helping companies to measure and improve their positive impact.

There is a major theme behind these first-generation impact assessment.  Their main goal is to provide bench-marking to institutes that they focus on. 

The problem is that they try to use "impact assessment" with a broader brush.  Reality is impact is a context sensitive and cannot be measured through ratings!

 

Impact Scorecard

Impact Scorecard is a reporting mechanism designed to communicate and track impact results by asset managers and assets.   Impact Scorecards are designed based on a theory of change with key metrics, each tracked to measure performance based on baseline, target, forecast, and actual results to ensure proper social performance.

Tools like Clear Impact allow public agencies, often healthcare organizations, to create an impact scorecard. At the same time, scorecard-based reporting is helpful in public agencies where regulatory reporting is important.

Benefits for Tools:

  • Easier to use 
  • Simpler Reporting
  • Useful in a public agency where regular reporting is required from different agencies

Challenges:

  • Every organization must select its metrics
  • Data collection, management, and aggregation are not included, hence everyone has a different process 
  • Inconsistent reporting
  • Rigid reporting
  • Do not provide feedback about the outcome to the organization

Example:

  • Clear Impact: Web-based application for all things measuring and reporting.

The program, Case Management and Data Management

Where does all the data you collected go? Who has access to it? How is it analyzed and shared? These crucial questions point to the need to manage all kinds of data across departments and even across organizations in the impact sector. 

  • Quickbase: Between dashboards and data reporting, this code-free application building platform gives teams the power to customize data management to fit their needs.
  • Salesforce: One of the most well-known, comprehensive services on the market, you can find nearly everything you need for data management in the Salesforce suite of products.  Many software vendors now support specialized implementation on top of Salesforce.  Many of them provide 70-30% solution.  i.e. provide 70% base functionality.  However, the reality is that you will have to ask the vendor to customize the software to fit your need.  Depending on your need, it can take anywhere from 3-12 months to customize.   Keeping in mind cost and time for implementation, you also have to account for the fact that you will be responsible for future requirements changes and maintenance to fit in future changes!
  • Sopact Impact Cloud: An end-to-end solution to impact data management needs, the solutions include features for stakeholders at any point in the spectrum, improving data accessibility and how well it can be leveraged.
  • Blackbaud: A cloud software solution with a focus on social good. Their offering of products and services for nonprofits is as comprehensive as it gets, including a dashboard designed specifically to manage the outcomes tracking of a program or organization.
  • Social Solutions: Specializes in solutions for impact-oriented organizations, large and small, and includes proprietary software with reporting and measurement tools.
  • Net Suite: The self-proclaimed #1 Cloud ERP uses more than 400,000 organizations from entry-level to C-suite executives to help manage data and internal processes. 
  • Airtable: Complete with mobile and desktop apps, this powerful platform allows for seamless cross-team data syncing in real-time. Its spreadsheet and other features are used by over 30,000 companies globally—example interface shown below.

Read More: Is collective impact model the future of social change?

Monitoring and Evaluation tools

The goal of Monitoring and Evaluation, in general, is to hold ourselves accountable to our impact goals through our data. Software suites specific to M&E needs to measure the progress and performance of an organization’s programs. Often these software suites are costly and obtained through grant funding. 

Article with an extensive list of M & E Software 

Software tools for M&E

  • ActivityInfo: Developed in collaboration with UNICEF, this software is used in over 50 countries to optimize workflows between dispersed teams and organizations.
  • DevResults: A dashboard for managing evaluation data; offers great mapping and collaboration capabilities.
  • Synergy Indicata: Monitoring and Evaluation Software: An impressive suite of features specifically for M&E processes, from the necessary dashboards and analytics to results frameworks and cross-project data collection.
  • Granity: Remote data collection and automated reporting are just a couple of the features that this software provides to facilitate good M&E results.
  • Newdea: They have a suite of free tools to help manage your impact data and streamline your social impact assessment.

Articles

Social Return On Investments Tools

With the advent of impact investing, first-generation tools started with a social value-based measurement approach.  These tools are designed based on popularly known approaches such as Social Return on Investment (SROI), led by Global Value Exchange (GVE)

Challenges with SROI or Social Value Tools:

  • These tools allow you to provide a Social Return on Investment.
  • Often these tool requires a survey-based approach which is quite limited as it doesn't consider regular data collected in different systems.
  • Requires financial proxy, which assesses cost/benefit very subjective or research bias-based—often designed to tilt bias, which doesn't consider the true context of impact.

Resource Tools Providers:

  • Sametrica: Demonstrate impact outcomes through their impact data management and reporting services.  

 

Social impact accounting

Social accounting is a comprehensive approach to manage all social, environmental, and governance results and outcomes of assets, asset managers, and asset owners.  The mission-driven organization can often use the comprehensive platform such as Impact Cloud to manage social accounting.

Social Accounting is often another interchangeable term for social impact assessment.  The readers of the social impact tracker should safely replace all the resources mentioned in this article. Impact Cloud is the most powerful user experience, comprehensive and flexible social accounting platform.  

 

Related Links

 

Intro Title

Social Impact Assessment Resources

Social impact assessment is a process used to identify, predict, and evaluate the potential social and environmental impacts of a proposed project, policy, or program. It is an important tool for decision-makers to consider the potential impacts on communities and stakeholders and to identify ways to mitigate or avoid negative impacts and enhance positive impacts.

Here are some resources that provide information on social impact assessment:

  1. International Association for Impact Assessment (IAIA) - https://www.iaia.org/what-is-impact-assessment
  2. United Nations Environment Programme (UNEP) - https://www.unep.org/sustainable-development/sustainable-development-goals/what-are-the-sustainable-development-goals/goal-17-partnerships-for-the-goals/target-17-16-enhance-the-means-of-implementation-and-revitalize-the-global-partnership-for-sustainable-development/indicator-17-16-1-number-of-countries-that-have-integrated-sustainable-development-goals-into-their-national-development-plans
  3. World Bank Group - https://www.worldbank.org/en/topic/safeguards/brief/social-impact-assessment
  4. Social Impact Assessment Resource Centre - https://www.siar.info/
  5. Environmental Defense Fund - https://www.edf.org/resources/social-impact-assessment-sia

These resources provide information on the purpose and process of social impact assessment, as well as guidance on how to conduct a social impact assessment and examples of best practices.

Conclusion

A social impact assessment (SIA) is a process used to identify and evaluate the potential social impacts of a proposed policy, program, project, or activity. It is typically conducted as part of the planning or decision-making process for the policy, program, project, or activity in question, and is designed to help ensure that the social impacts are considered and addressed in a proactive and responsible manner.

SIAs can be used to assess a wide range of social impacts, including economic, environmental, cultural, and community impacts. They can also be used to assess the potential impacts on different groups of people, including disadvantaged or marginalized groups.

Overall, the goal of a social impact assessment is to help identify and mitigate any negative impacts and to enhance the potential positive impacts of the policy, program, project, or activity on the community. By conducting a thorough and rigorous SIA, decision-makers can make more informed choices that consider the social impacts of their actions and strive to promote the well-being of all members of the community.