As the practice of measuring social impact evolves and gains momentum, companies are increasingly calling for a harmonized approach to measure and value their interactions with people and society. In response to this need, we are driving the collaborative development of the Social Capital Protocol. The Protocol aims to clarify best practices, boost the positive impacts of business, and improve business credibility by integrating the consideration of social impacts and dependencies into performance management and decision-making.
Companies are struggling to identify fit-for-purpose approaches to integrating social measurement, management and valuation within their organizations. Many tools exist and more are emerging; however, they're based on different assumptions, offer different functionalities, suit different purposes, and increasingly compete for uptake. As a result, credibility and comparability suffer.
“Developing a credible and broadly accepted approach is essential, not only to demonstrate our performance to stakeholders and shareholders, but also to ensure the effort of measuring and reporting informs a continuous movement towards more socially sustainable practices. Only by working together can we ensure an outcome with the power to truly transform the way we do business.” The WBCSD Redefining Value Board
In June 2015, we launched a call for collaboration to initiate the development of the Social Capital Protocol—a harmonized approach for businesses to measure and value their interactions with society. The Social Capital Protocol is a critical part of the evolving business toolkit, bringing together the currently fragmented landscape of social measurement and valuation. It will provide the universal processes, principles and tools needed by business to ensure social risks and opportunities are considered alongside financial and environmental issues in corporate strategy and decision-making. It will also lay solid foundations for integrated reporting.