It is possible to systematically determine who is significantly affected by a business, and to measure what changes for people, and how important this is. It is even possible, thanks to social networking and information technology, to capture and analyze this information rapidly at low cost. It is also possible to use this information to improve results, get free marketing, build brand and goodwill, and grow income. The process of doing this is called impact management.
Impact management takes insights from scientific research and combines them with insights from market research, design, social media, information management, and finance to provide businesses of all types with timely information about what impact on people and the planet is actually resulting from their activities, and how important that is to those affected.
Impact management builds upon the core principles of Social Return on Investment (SROI) Analysis, which are:
- Involve stakeholders.
- Understand what changes.
- Value the things that matter.
- Only include what is material.
- Do not over-claim.
- Be transparent.
- Verify the result.