The Center for Social Value Enhancement Studies(CSES) is a non-profit foundation established by SK, carrying out research on social values and academic research supporting projects based on measurement and incentives. In particular, as the size of impact funds increases significantly, interest in impact measurement rises internationally. In line with this trend, the Center for Social Value Enhancement Studies(CSES) has developed the Impact IVM Guideline, a methodology that can value the impact of companies in the 2020 Impact Fund portfolio in monetary units.
The 『Impact IVM Guideline』 consists of three stages: Identification, Valuation, and Management, and is configured to more accurately estimate the impact produced by the enterprises throughout the entire investment process. In order to achieve the global standard, the 『Impact IVM Guideline』 attempted to obtain the credibility of various stakeholders by applying the 5 Dimensions of Impact of IMP, IMM of Rise fund, and the lean data method of 60_decibels.
Since then, various cases have been collected by carrying out impact measurement projects of 10 social enterprises. Especially, in the case of Lumir, a lighting brand, through collaboration with 60_decibels, the entire IVM process is carried out and could be able to determine the real impact that the company produces.
We explain the IVM guideline by focusing on the Lumir case, and introduce how to recognize, monetize, and check the various impacts produced by enterprises.
In the field of impact measurement, without any particular standards, we would like to naively describe a year-long effort to move toward global standards.
Beyond measuring the performance created by social enterprises in simple monetary value and number, we want to achieve a collective impact in the stages of recognition of performance (I), estimation (V), and management (M) through communication(Narrative) between stakeholders, including social ventures.
As Aswath Damodaran, professor of Finance at New York University, argues that ‘the power of story drives corporate value, adding substance to numbers and persuading even cautious investors to take risks.’, we should not be satisfied to guess(Numbers) the impact of corporations, the impact should be looked at more continuously through communication(Narrative) by all stakeholders.
BTS (Build-Trust-Standard) We hope that the impact management method, such as this case, built based on feedback from various stakeholders, will achieve more collective impact within the ecosystem, by building trust to support creating continuous value in the impact market, and share various experiences that the Center for Social Value Enhancement Studies(CSES) has conducted in Korea.