We live in a time where communicating your social impact is becoming increasingly important. Both investors and other stakeholders want to see proof that resources are well spent and that the desired impact is being achieved. Even employees are increasingly asking for a measurement that allows them to gauge the effects of their work. Seeing the results of your work is motivating, and it’s helpful to know how to optimize your work when resources are limited.
Moreover, in addition to the financial-economic performance, the social and ecological effects of an organization are becoming more and more important, which needs appropriate measurement and communication. Anyone who wants to work in a hybrid way, i.e. to value both the financial and the social side of business, will also have to communicate about both.
“It doesn’t matter why you want to measure your impact, be it for your CSR policy or for philanthropic reasons. The approach and the reasoning behind stay the same. It’s necessary for both aims. Because if you don’t measure your impact it’s the same as a commercial organization which does not know how much profit it makes.”
Dr. Karen Maas
Erasmus University Amsterdam
There may be several stakeholders with an interest in your impact report, and all have their own reasons for this interest. In the figure below you will find an overview of the main stakeholders and their motives. Take this motives into account when you are deciding on what to report and how.