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ARUN’s Social Impact Monitoring

Measuring social and environmental impact: How to evaluate and monitor social return on investment,

International Symposium on Social Investment 7/Oct/2012

ARUN’s Social Impact Monitoring

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…is still in the process.

ARUN’s Vision/Mission

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Through the vehicle of social investment, ARUN aims at creating the society which can bring every person's ability into full play regardless where s/he is born.

Social Entrepreneur

s

Investees in Cambodia

Individuals/Firms

Investors in Japan

Platform for Social Investment

Social ImpactsFinancial and Social Return

Financial and Technical Support

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Objectives of social impact monitoring

1.Understand

about the investees

2. Feedback to

Partners

3. Feedback to

Investees

1. Deepen understanding about the investees’ business•Understand what entrepreneur is trying to achieve in terms of social impact. •Keep track of what is happening 　•Monitor and evaluate the social and environmental impacts.

2. Feedback to Partners•Communicate with partners (investors).

3. Feedback to Investees•Communicate with investees.

Investment Criteria

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Entrepreneur’s Commitment to Social Value Creation

Social Value

Employment

Community

Social Business

ビジネスモデル

財務

ガバナンス

リーダーシップ

Financial Return

Business Model

Financial

Governance

Leadership

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General DD criteria/monitoring indicators

Indicator Example of criteria

Entrepreneurship Mindset as a social entrepreneur

Team awareness of social mission

Business Model Innovative business model

Employment Job Creation ( especially the vulnerable)

Income generation

Safe and pleasant working environment

Skill development for employees

Enhanced self-esteem and confidence

Local community Use of local resources

Empowerment of local economy

QC Quality control

Environment Environmental effort

Monitoring methodologies

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SocialMission ＆Objectives

Outputs Outcomes ImpactInputs

Stakeholder Analysis

Logic Model Analysis

• Investees’ social mission and objectives are the starting point of monitoring.• We try to measure outputs/outcomes/impact from business we invest in.

• All the important stakeholders are identified, such as employees, farmers, local community and directly monitored.

Our focus

Case Study:Sahakreas CEDAC(SKC)

Organic Rice Project

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Overview of SKC’s Organic Rice Project

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CEDAC’s VisionCEDAC’s VisionCEDAC envisions a Cambodian society where small farming households enjoy good living conditions and strong mutual cooperation, with the right and power to determine their own destiny, as well as playing an important role in supplying healthy food for the whole society/

1 ． Introduction of ecosystemic agricultural technology

⇒ 　 100,000 households improved their productivity

2 ． Farmers’ associations

⇒ 　 4,000villages (30 ％ of total villages ）⇒ 　 Saving groups 　 4,500⇒ 　 Farmers’ associations 1,000

3 ． Creating the supply chain

Farmers 　　　 Producers Associations 　　　 Sahakreas CEDAC 　　　　 Market

(Domestic, Intern’l) 　　　

System of Rice Intensification 　 (SRI)

Developing Monitoring Indicators

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Teaching SRI techniques

Improved living condition for farmers

Vision &knowledge

Good health 　&Environment

Organizing farmers

Link to the market

Supporting farmers’ associations

Purchasing rice from farmers and selling in the market

CEDAC

CEDAC’s VisionCEDAC’s Vision

SKC

Important Important stakeholderstakeholder

Organic Rice Farmers Outreach

Income generation

Forming association

Vision, knowledge and skill improvement

Local economy Positive impacts on the local economy

IndicatorsIndicators

Summary of findings

Reaching 2,668 households

• With SKC in the market, the price for paddy increased due to competition among middlemen and SKC.

• SRI technique leads to cost reduction for farmers and improvement of the surrounding environment.

• Producers of organic rice form association, building social infrastructure in the rural area.

1998t-paddy purchased,

generating income of

824,000USD

• Organic rice project contributes to the other economic activities in the community, such as rice wine production and community business by association members.

Vitalizing the local economy

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Challenges

• Objective Subjective• Quantitative Qualitative• Common measurement Case specific• Preciseness, depth Monitoring costs• Boundary of monitoring/evaluation• Integrated evaluation of financial and social

return?<Social evaluation>•Employment•Impacts on local community•Environment

<Financial evaluation>•Profitability•Stability•Growth rate

Thank You for your attention !

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