measurement becomes essential to evaluate how a company contributes to the well-being of society. Although there is no single framework, there are several common methodologies adopted to measure it, including: A Theory of change: Acting as a roadmap to analyse the causal relationship between a company’s activities and its social impact, helping to define the objectives and determining the necessary strategies and actions to reach them. B Social Return on Investment (SROI): Based on the idea of assigning a monetary value to the social impact generated and inspired by the economic indicator of Return on Investment, but incorporating the concept of social value, allowing for a tangible quantification of the social benefits resulting from business actions, and facilitating the evaluation of their impact. C IRIS (Impact Reporting and Investment Standards): A catalogue of metrics designed to measure social, environmental, and financial value. Providing a set of standardised indicators that companies can use to assess their impact by collecting relevant data and reporting on their performance in terms of ESG (Environmental, Social, and Governance) criteria, contributing to greater transparency. SOCIAL INVESTMENT OR STRATEGIC PHILANTHROPY It is important to emphasise the role of investments in these initiatives. In many businesses, social investments focused on external groups predominate, which can be referred to as the shift from charity to social investment. Some companies argue that philanthropy should be strategic because by using the company’s own skills and expertise, the greatest possible economic and social value is generated. There are different forms of corporate social investment depending on the context, including: 1 Creating internal programmes within the company. 2 Creating organisations outside the company, such as foundations, corporations, or associations that support existing NGOs. 3 Participating in social programmes led by the sector to which they belong. 4 Participating in government programmes. The landscape is diverse regarding social investments by companies. Although social investment is recognised, strategic philanthropy holds a special place in fostering collaborative initiatives. Through the integration of social management strategies with business strategies, companies manage to generate social value and economic value with their social interventions, increasing the likelihood of the intervention’s survival, and providing an experience and logistics that are difficult to obtain otherwise. A social initiative integrated within the business has different characteristics from social investments detached from the business, and it has a high potential impact due to the possible synergy between the economic and the social realms. BUSINESS CHALLENGES In an increasingly globalised and complex world, companies face a series of challenges that go beyond economic profitability. Climate change, social inequality, and food insecurity, among others, must be addressed to be sustainable in the long term. As a result, a great diversity of business initiatives are emerging as solutions to meet various needs. Each has an impact on workers, suppliers, customers, competitors, the local community, and specific sectors of society. More and more companies are investing in being socially responsible and maintaining sustainable development. This shift could reflect a growing ethical business commitment but also emerges as a solid strategy in response to economic instability, seeking business sustainability alternatives. Despite this, the promotion of corporate social impact is a fundamental pillar for sustainable development and the wellbeing of society. The adoption of corporate social responsibility practices has a significant potential for benefiting businesses while generating a positive impact on society, the environment, and employees. By committing to actions ranging from production efficiency and equal employment opportunities to environmental preservation and waste reuse, organisations can significantly and tangibly contribute to the wellbeing of the communities where they operate and to society in general. FIFTY FOUR DEGREES | 49 Beatriz Bonilla Berrocal is a PhD candidate in the Department of Design, at Politecnico di Milano, and a Visiting Researcher at Lancaster University. Her main interests lie in developing strategies that drive positive change for businesses and communities through design practice. beatriz.bonilla@polimi.it
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