Measuring an Enterprise's Progress Toward Social Profit Goals: Suggesting Useful Metrics

摘要

Why social profit metrics are important for all enterprises? What metrics can we suggest for measuring an enterprise's progress toward social profit goals? The social profit metrics suggested in this paper include: Total Social Profit; Unit Social Cost; Fixed Unit Social Cost; Variable Unit Social Cost; Social Return on Investment; Social Return on Assets; Working Social Capital Productivity; Social Break-even Point; Net Cash Flow from Social Operations; Social Program Free Cash Flow; and Social Return on Fundraising. These social profit metrics recognize the interde-pendency between social and business results in creating shared value. Social profit metrics are critical to motivating the behavior and enhancing the performance of for-profit and social profit enterprises (such as not-for-profit charities).