1. Measuring social added value Italian experiences
SEN - Social Entrepreneurship Network
Cluster: Access to Finance
19-20 May Warsaw
Measuring social added value Italian experiences
Floriana Nappini [

2. The Italian Social Balance
Established in 2006 by a legislative decree (n. 155) Provides an obligation for social enterprises to produce and submit a social balance on a yearly basis
Social Balance Guidelines
Provide specific guidelines on:
Structure of the Social Balance and minimum information required
Obligations in terms of:
Approval process
Submission to social Enterprises Register

3. Structure of the Italian Social Balance
The main chapters of the Social Balance Include:
Introduction
Methodology, timing of the analysis, list of activities and topics, communication plan etc.
General Information on the Social Enterprises and on its Board of Directors
Institutional members, board of directors, sector of activities, services offered etc.
Structure, Governance and Administrators
Social aims, membership characteristics, remuneration schemes, workforce composition etc.
Aims and Activities
Medium and long-term strategies, policies, activities and outcomes achieved; level of involvement of users and workers in decision-making processes; evaluation processes etc.
Financial Situation and description of main Financial Aspects
Analysis of the revenues and income of the enterprise, analysis of costs, funds, donations etc.
Other Additional information

4. The Social Balance in the Lombardy Region
Obligatory to all social cooperatives (not only social enterprises)
Addition information required:
Relations with Internal Stakeholders
Relations with the Local Territory

5. Data on the utilisation of the Social Balance
A survey carried out in 2011 by the IRIS Network shows that
73% of social enterprises (in the wider sense) elaborate a social balance
44% distribute the social balance among their workers (internal stakeholders)
6% distribute it to their own users
12% use their website to disseminate it

6. Strengths and Weaknesses of the Social Balance
Globally homogeneous data
Effective tool supporting the dialogue with external stakeholders and the engagement of internal ones
Can promotes processes of change
Weaknesses:
Limited comparability of data
Need to be coupled with effective communication strategy

7. The BFSE Tool Main objectives and characteristics of the tool
The general goal of the model is to measure the social value produced by a social enterprise as a whole or by a specific project.
The primary goal of the system is to give funding entities, particularly public bodies, a tool for evaluating the social value created by social enterprises.
Ex-ante evaluation of social impact
Simple and easy to use

8. The BFSE Tool
The Measurement Tool elaborate consists of two main parts:
The first part is designed to "measure" the social value produced by the social enterprise as a whole (based on Social accounting)
The second part is intended for evaluating mainly single projects (based on SROI)
Each part could be applied at different levels of depth analysis, based on the context (i.e. amount of the financial grant, size of the social enterprise, etc..)

9. The system takes into considerations the following dimensions:
PART I- Evaluation of the overall social added value produced by the enterprise – The dimensions
The system takes into considerations the following dimensions:
Financial and economic soundness
Democracy and governance
Organizational functioning
Professional resources
Equal opportunities
Socio-occupational integration
Clients
Networks and partners
Project design and innovation abilities
Environmental sustainability
Services and interventions
Each of the above dimensions is made up of further sub-dimensions.

10. Dimension: Socio-occupational integration
PART I- Evaluation of the overall social added value produced by the enterprise – The sub-dimensions
Dimension: Socio-occupational integration
Sub-dimension: Effectiveness of job placements
Sub-dimension: Quality of job placements
INDICATOR
DEFINITION
Job placement cases of persons from disadvantaged groups
Total job placements
________________________
Total workers
Job placements drop-outs
N. of drop-outs during the given year
Total n. of placements in the year
INDICATOR
DEFINITION
Placement tutor
Has a tutor been identified for each job placement? (Yes/No)
Skills evaluation
Has a skills evaluatio plan been drafted? (Yes/No)

11. PART II – Evaluation of the social added value produced by single projects (SROI-Social Return On Investment)
SROI is an analytic tool developed recently in the United States for measuring and accounting for the social, economic and environmental impact created by organisations.
This approach aims to reveal the value of changes experienced by stakeholders whether those changes have been priced in market transaction or not and helps identify which changes are significant. It uses financial proxies to help reveal the value and as part of the process of deciding which changes are significant.
It allows for the calculation of a benefit to cost ratio. A 3:1 ratio indicates that an investment of 1€ delivers 3€ of social value.

12. Testing the tool
Part I – Evaluation of the social added value produced by the enterprise
Identifying a system of weights
Benchmarking
Modifying the evaluation system if necessary
Part II – Evaluation of the social added value produced by single projects
SROI case-study on a real social inclusion project in Lombardy
Comparative analysis

13. THANK YOU!