Позитивные изменения. Том 3, № 4 (2023). Positive changes. Volume 3, Issue 4(2023)

François Bonnici, Director of the Schwab Foundation for Social Entrepreneurship and Head of Foundations at WEF, expanded on the theme of social business. He refreshed the forum participants’ understanding of what constitutes a social economy and shared insights from the Schwab Foundation’s report “Unlocking the Social Economy.”

The social economy is a broad term encompassing enterprises that employ free market mechanisms to reach socially significant objectives. Currently, social entrepreneurship contributes up to 7 % of the global GDP, with some countries reaching as much as 10–12 %. Governments are increasingly pivoting towards sustainable development, and the social sector is playing a pivotal role in this shift. Bonnici presented a living example, joining the Forum online from Brazil, where he was engaged in high-level negotiations as an expert in launching the impact economy.

Since the turn of the millennium, over 20 countries have enacted laws related to social entrepreneurship and the social economy. In 2022, the International Labor Organization and the OECD issued their first recommendations on the social and solidarity economy. The European Union launched a Social Economy Action Plan, allocating more than 2.5 billion euros in funding, while the African Union adopted a decade-long strategy for the social and solidarity economy. Meanwhile, the G7 Global Steering Group for Impact Investment continues to develop national, policy, and governmental ecosystems that harness private capital for the public good.

The current challenge for the social economy lies in quickly establishing clear and functional criteria for evaluating and measuring social impact.

The current challenge for the social economy lies in quickly establishing clear and functional criteria for evaluating and measuring social impact. This is essential to support the burgeoning field of impact investing and to prevent practices like greenwashing[80] and “social washing.”[81] Bonnici advocates for simultaneous action across all levels: micro, meso, macro, and meta.

MICRO-LEVEL: ORGANIZATIONAL

• Impact measurement must be transparent, consistent, and open to independent verification. This approach will boost trust in impact reports.

It is vital to consider not only the organization’s direct impact but also its indirect effects, such as those exerted through its suppliers.

• Wherever possible, the focus must be on quantitative impact indicators, not just qualitative ones. Numbers are inherently more effective in conveying the scope of achievements.

• Impact measurement isn’t only for companies, investors, and governments; it is needed primarily for the individuals on the receiving side of the social impact.

MESO-LEVEL: SECTORAL AND NATIONAL

• Many countries need to establish a conducive legal and regulatory environment for social entrepreneurship.

• Governments should regularly collect statistics on the social economy and its impacts, extending beyond traditional measures, and make them available to the public.

• Investment in the visualization and dissemination of impact data is essential.

MACRO-LEVEL: GLOBAL

• Goal: Establishing universal standards and frameworks for impact measurement to promote social economy on a global scale.

• Challenge: Most existing methodologies are geared towards evaluating the social value and impact at the level of organizational units or investment portfolios, rather than the social economy systems as a whole. Moreover, there is no consensus on which indicators should be used to measure the size of the social economy.

• Solution: The Impact Management Platform[82] represents a step towards standardization and the development of impact measurement standards by leading field experts.

META-LEVEL: SYSTEMIC CHANGE

• Over the past four decades, social entrepreneurship has proven to be a viable alternative to profit-centric business models.

• In the era of dual transitions to a digital economy and green energy, the social economy needs to evolve beyond a distinct sector of government and transform into an inclusive platform, enabling all stakeholders to engage in sustainable development.

Following François Bonnici, Irene Basile, a Policy Analyst at the OECD, also emphasized the importance of impact measurement. She advocates viewing this process not merely as a compliance obligation for sponsors and investors, but as a strategic planning and analysis tool.