Measuring Social Enterprise Value Creation – Furniture Bank Case Study

SUMMARY OF RESEARCH

This article presents a case study that explores the creation of value by a social enterprise, Furniture Bank, for its stakeholders. The study is undertaken using the social return on investment framework. The case highlights insights and caveats that resulted from undertaking this type of analysis. This article calls for an integrated approach to social return on investment processes, incorporating both conventional accounting and social accounting.

Furniture Bank, as a social enterprise, has to be concerned with both its financial and social bottom lines. Although conventional accounting is useful for financial performance, it does not provide evidence of social outcomes. At the same time, the SROI analysis is also limited in that it does not present evidence of financial performance.

SOURCE:

Mook, L., Chan, A., & Kershaw, D. (2015). Measuring Social Enterprise Value Creation. Nonprofit Management and Leadership, 26(2), 189–207. https://doi.org/10.1002/nml.21185

SUMMARY OF RESEARCH

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