CINXE.COM

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But investors do not supply metrics about their impacts on individuals’ and families’ lives, and until they do, social impact reporting is unlikely to approach the level of robustness associated with financial and environmental reporting. The authors of this article describe how Bayer’s Crop Science division has developed reliable stakeholder reported measures of the social impact of its inclusive growth projects based on an approach first pioneered in the healthcare sector." data-testid="meta"/><meta name="item-name" content="A Better Way to Measure Social Impact" data-testid="meta"/><meta name="page-category-name" content="Business and society" data-testid="meta"/><meta name="shopper-attributes" content="state:guest" data-testid="meta"/><meta name="twitter:image" content="/resources/images/article_assets/2024/09/Sep24_26_1339591959.jpg" data-testid="meta"/><meta name="article:section" content="Business and society" data-testid="meta"/><meta name="item-id" content="tag:blogs.harvardbusiness.org,2007-03-31:999.388061" data-testid="meta"/><meta property="article:publisher" content="https://www.facebook.com/HBR" data-testid="meta"/><meta property="og:site_name" content="Harvard Business Review" data-testid="meta"/><meta property="og:type" content="article" data-testid="meta"/><meta property="og:description" content="All impact investors report the financial returns from their funds and investments, and many provide metrics on intended social outcomes, such as numbers of individuals served, or quality jobs created. But investors do not supply metrics about their impacts on individuals’ and families’ lives, and until they do, social impact reporting is unlikely to approach the level of robustness associated with financial and environmental reporting. The authors of this article describe how Bayer’s Crop Science division has developed reliable stakeholder reported measures of the social impact of its inclusive growth projects based on an approach first pioneered in the healthcare sector." data-testid="meta"/><meta property="og:image" content="/resources/images/article_assets/2024/09/Sep24_26_1339591959.jpg" data-testid="meta"/><meta property="og:title" content="A Better Way to Measure Social Impact" data-testid="meta"/><meta property="article:published_time" content="2024-09-26T12:05:25.000+00:00" data-testid="meta"/><meta property="page-id" content="300" data-testid="meta"/><meta property="article:modified_time" content="2024-09-26T12:05:25Z" data-testid="meta"/><meta property="page-category-id" content="391149" data-testid="meta"/><meta property="intromercial" content="false" data-testid="meta"/><meta property="primary-editor" content="68" data-testid="meta"/><meta property="article:tag" content="Sustainable business practices" data-testid="meta"/><meta property="article:tag" content="Corporate social responsibility" data-testid="meta"/><script>window.digitalData = {"pageInstanceID":"A Better Way to Measure Social Impact:production","siteID":"hbrprod","page":{"pageInfo":{"language":"en","contentType":"Digital Article","pageName":"A Better Way to Measure Social Impact","pageType":"Article","pageCategoryID":"391149","pageCategoryName":"Business and society","pageDescription":"All impact investors report the financial returns from their funds and investments, and many provide metrics on intended social outcomes, such as numbers of individuals served, or quality jobs created. But investors do not supply metrics about their impacts on individuals’ and families’ lives, and until they do, social impact reporting is unlikely to approach the level of robustness associated with financial and environmental reporting. The authors of this article describe how Bayer’s Crop Science division has developed reliable stakeholder reported measures of the social impact of its inclusive growth projects based on an approach first pioneered in the healthcare sector.","date":"11-30-2024","time":"07:20 AM","deviceType":"Desktop","pageURL":"https://hbr.org/2024/09/a-better-way-to-measure-social-impact?ab=HP-hero-featured-text-1","referringURL":"","sysEnv":"Desktop"},"attributes":{"articleEditorialDistinction":null,"articleContentType":"Digital Article","articleType":"Digital Article","articleAuthor":[{"authorName":"Robert S. 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But investors do not supply metrics about their impacts on individuals’ and families’ lives, and until they do, social impact reporting is unlikely to approach the level of robustness associated with financial and environmental reporting. The authors of this article describe how Bayer’s Crop Science division has developed reliable stakeholder reported measures of the social impact of its inclusive growth projects based on an approach first pioneered in the healthcare sector.","image":"https://hbr.org/resources/images/article_assets/2024/09/Sep24_26_1339591959.jpg","datePublished":"2024-09-26T12:05:25.000+00:00","dateModified":"2024-09-26T12:05:25Z","url":"https://hbr.org/2024/09/a-better-way-to-measure-social-impact","isAccessibleForFree":false,"publisher":{"name":"Harvard Business Review","url":"https://hbr.org/"}}</script><link rel="preload" href="/assets-mfe-articles/_next/static/css/8269b3cc823d35cf.css" as="style"/><link rel="stylesheet" href="/assets-mfe-articles/_next/static/css/8269b3cc823d35cf.css" data-n-g=""/><link rel="preload" href="/assets-mfe-articles/_next/static/css/3dd34cd4baa187bb.css" as="style"/><link rel="stylesheet" href="/assets-mfe-articles/_next/static/css/3dd34cd4baa187bb.css" 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class="DekBylineContainer_dek-byline-content__jety2 DekBylineContainer_standard__Lox1c"><span class="Byline_byline__Fsu0D"> by <a href="/search?term=Robert S. Kaplan" class="Byline_author__SdVEf">Robert S. Kaplan</a> and <a href="/search?term=Constance Spitzer" class="Byline_author__SdVEf">Constance Spitzer</a></span></p></div><div class="PublicationDate_standard__rpflO PublicationDate_non-magazine-date-container__Ln4Wl"><span class="PublicationDate_non-magazine-date___Oz7L">September 26, 2024</span></div></div><div class="Standard_hero-image__pLYMe"><div class="Hero_standard__7wZzF"><img class="Hero_img__EpkVw" src="/resources/images/article_assets/2024/09/Sep24_26_1339591959.jpg" sizes="(min-width: 64em) 84vw, 100vw" srcSet="/resources/images/article_assets/2024/09/Sep24_26_1339591959.jpg 1200w, /resources/images/article_assets/2024/09/Sep24_26_1339591959-300x169.jpg 300w, /resources/images/article_assets/2024/09/Sep24_26_1339591959-1024x576.jpg 1024w, /resources/images/article_assets/2024/09/Sep24_26_1339591959-768x432.jpg 768w, /resources/images/article_assets/2024/09/Sep24_26_1339591959-500x281.jpg 500w, /resources/images/article_assets/2024/09/Sep24_26_1339591959-383x215.jpg 383w, /resources/images/article_assets/2024/09/Sep24_26_1339591959-700x394.jpg 700w, /resources/images/article_assets/2024/09/Sep24_26_1339591959-850x478.jpg 850w" alt="" role="presentation"/><div class="Hero_container-caption-credits__w3p3u Hero_standard__7wZzF"><span class="Hero_credits__Ll8_0">Suwiwat Hongsombut/Getty Images</span></div></div></div><div class="Standard_top-utils__v8vF1"><ul class="PageUtils_container-top__pyYDD PageUtils_standard__FTgtj"><li class="PageUtils_list-item__HK3pt"><a class="PageUtils_item-button__UHILB" href="https://twitter.com/intent/tweet?&original_referer=&ref_src=twsrc%5Etfw&related=twitterapi%2Ctwitter&tw_p=tweetbutton&url=" target="_blank" rel="noopener noreferrer" data-analytics="share-on-x"><img src="/assets-mfe-articles/_next/static/media/Twitter.7ac71c2c.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Post</span></a></li><li class="PageUtils_list-item__HK3pt"><button class="PageUtils_item-button__UHILB" type="button" data-analytics="share-on-facebook"><img src="/assets-mfe-articles/_next/static/media/Facebook.f94faecd.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Post</span></button></li><li class="PageUtils_list-item__HK3pt"><button class="PageUtils_item-button__UHILB" type="button" data-analytics="share-on-linkedin"><img src="/assets-mfe-articles/_next/static/media/LinkedIn.c9a4114a.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Share</span></button></li><li class="PageUtils_list-item__HK3pt"><button class="PageUtils_item-button__UHILB" type="button" data-analytics="open-save-flyout"><img src="/assets-mfe-articles/_next/static/media/Save.635e3a71.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Save</span></button></li><li class="PageUtils_list-item__HK3pt PageUtils_standard__FTgtj"><a class="Anchor-module_anchor__uhpem PageUtils_item-button__UHILB" href="/product/a-better-way-to-measure-social-impact/H08BFH-PDF-ENG" rel="noopener noreferrer" target="_blank" data-analytics="buy-reprint-link"><img src="/assets-mfe-articles/_next/static/media/BuyCopy.088ae0cd.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Buy Copies</span></a></li><li class="PageUtils_list-item__HK3pt PageUtils_standard__FTgtj"><button class="PageUtils_item-button__UHILB" type="button" data-analytics="print-article"><img src="/assets-mfe-articles/_next/static/media/Print.61d005bb.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Print</span></button></li></ul></div><div class="Standard_summary__XfVno"><section class="Summary_container__LHBTn Summary_standard__FY82u Summary_initial-layout__EtsKc"><h2 class="Summary_summary-header__NtM4x">Summary. </h2><span class="Summary_summary-text__eMqXD"><span class="Summary_summary-text__eMqXD">All impact investors report the financial returns from their funds and investments, and many provide metrics on intended social outcomes, such as numbers of individuals served, or quality jobs created. But investors do not supply metrics about their impacts on individuals’ and families’ lives, and until they do, social impact reporting is unlikely to approach the level of robustness associated with financial and environmental reporting. The authors of this article describe how Bayer’s Crop Science division has developed reliable stakeholder reported measures of the social impact of its inclusive growth projects based on an approach first pioneered in the healthcare sector.</span></span></section><div class="TranslateMessage_translate-message__iUF3m"><a class="Anchor-module_anchor__uhpem TranslateMessage_link__KubhN TranslateMessage_translate__mUd5F" href="/2024/09/a-better-way-to-measure-social-impact?language=es" data-analytics="lang-es">Leer en español</a><a class="Anchor-module_anchor__uhpem TranslateMessage_link__KubhN TranslateMessage_translate__mUd5F" href="/2024/09/a-better-way-to-measure-social-impact?language=pt" data-analytics="lang-pt">Ler em português</a></div></div><div class="Standard_left-rail__qnsPO"><ul class="PageUtils_container-left__whOYQ PageUtils_standard__FTgtj"><li class="PageUtils_list-item__HK3pt PageUtils_vertical__SqN7k"><a class="PageUtils_item-button__UHILB" href="https://twitter.com/intent/tweet?&original_referer=&ref_src=twsrc%5Etfw&related=twitterapi%2Ctwitter&tw_p=tweetbutton&url=" target="_blank" rel="noopener noreferrer" data-analytics="share-on-x"><img src="/assets-mfe-articles/_next/static/media/Twitter.7ac71c2c.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Post</span></a></li><li class="PageUtils_list-item__HK3pt PageUtils_vertical__SqN7k"><button class="PageUtils_item-button__UHILB" type="button" data-analytics="share-on-facebook"><img src="/assets-mfe-articles/_next/static/media/Facebook.f94faecd.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Post</span></button></li><li class="PageUtils_list-item__HK3pt PageUtils_vertical__SqN7k"><button class="PageUtils_item-button__UHILB" type="button" data-analytics="share-on-linkedin"><img src="/assets-mfe-articles/_next/static/media/LinkedIn.c9a4114a.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Share</span></button></li><li class="PageUtils_list-item__HK3pt PageUtils_vertical__SqN7k"><button class="PageUtils_item-button__UHILB" type="button" data-analytics="open-save-flyout"><img src="/assets-mfe-articles/_next/static/media/Save.635e3a71.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Save</span></button></li><li class="PageUtils_list-item__HK3pt PageUtils_vertical__SqN7k PageUtils_standard__FTgtj"><a class="Anchor-module_anchor__uhpem PageUtils_item-button__UHILB" href="/product/a-better-way-to-measure-social-impact/H08BFH-PDF-ENG" rel="noopener noreferrer" target="_blank" data-analytics="buy-reprint-link"><img src="/assets-mfe-articles/_next/static/media/BuyCopy.088ae0cd.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Buy Copies</span></a></li><li class="PageUtils_list-item__HK3pt PageUtils_vertical__SqN7k PageUtils_standard__FTgtj"><button class="PageUtils_item-button__UHILB" type="button" data-analytics="print-article"><img src="/assets-mfe-articles/_next/static/media/Print.61d005bb.svg" aria-hidden="true" alt="" width="24" height="24"/><span class="PageUtils_utility-name__y5qBD PageUtils_standard__FTgtj">Print</span></button></li></ul></div><div class="Standard_content__mghDk"><p class="Paragraph_text__yGFNO" data-first-paragraph="true">Large companies around the world disclose sustainability information in their ESG reports. Much of the content is climate-related, but many companies also report on social impacts — the “S” in ESG. The measurement of social impact, however, is not as simple as in financial accounting where currency serves as the basic unit of measure, or in <a href="/2021/11/accounting-for-climate-change" class="ContentLink_anchor__Q6_U6">environmental accounting</a>, where objective, physical measures, such as kg of CO<sub>2,</sub> emissions, can capture and quantify a company’s environmental impact.</p></div><div class="Standard_right-rail__tTaUI"><div class="Standard_right-rail-content__Y1Qwu"><div data-testid="ad-container"><div data-testid="ad" id="right-ad" class=""></div></div><div class="right-rail-piano-container advertising PianoAd_ad__m1O2b" data-testid="piano-ad-container"></div><div class="ecommerce-module"><div data-analytics="placement-right_rail3" data-testid="container"></div><div class="RelatedTopics_container__2Nkb4 RelatedTopics_standard__UaUNv"><span class="RelatedTopics_related-topics__zEjID RelatedTopics_standard__UaUNv">Read more on <a href="/topic/subject/business-and-society?ab=articlepage-topic" class="RelatedTopics_topic-link__u_bsi"><strong>Business and society</strong></a> or related topics <a href="/topic/subject/sustainable-business-practices?ab=articlepage-topic" class="RelatedTopics_topic-link__u_bsi"><strong>Sustainable business practices</strong></a> and <a href="/topic/subject/corporate-social-responsibility?ab=articlepage-topic" class="RelatedTopics_topic-link__u_bsi"><strong>Corporate social responsibility</strong></a></span></div></div></div></div><div class="Standard_author__Ke782"><div data-analytics="end-of-article" data-testid="container"></div><aside class="AuthorBioList_container__qBo_1 AuthorBioList_standard__9lH5w"><div class="AuthorBio_author-info-item__0G_0z AuthorBio_standard___hh_q"><div class="AuthorBio_image-container___c3yQ"><img src="/resources/images/article_assets/2008/08/110-robert-kaplan.jpg" alt="" class="AuthorBio_author-picture__2ElG9" role="presentation"/></div><div class="AuthorBio_author-bio-container__u5vHF"><a class="AuthorBio_author-name__VPl47" href="/search?term=Robert%20S.%20Kaplan&amp;search_type=search-all">Robert S. Kaplan </a><span class="AuthorBio_biography__CPmNZ"> is a senior fellow and the Marvin Bower Professor of Leadership Development emeritus at Harvard Business School. He coauthored the McKinsey Award–winning HBR article “<a rel="noopener" target="_blank" href="https://hbr.org/2021/11/accounting-for-climate-change" class="ContentLink_anchor__Q6_U6">Accounting for Climate Change</a>” (November–December 2021).</span></div></div><div class="AuthorBio_author-info-item__0G_0z AuthorBio_standard___hh_q"><div class="AuthorBio_image-container___c3yQ"><div class="AuthorBio_author-picture__2ElG9">CS</div></div><div class="AuthorBio_author-bio-container__u5vHF"><a class="AuthorBio_author-name__VPl47" href="/search?term=Constance%20Spitzer&amp;search_type=search-all">Constance Spitzer </a><span class="AuthorBio_biography__CPmNZ"> is Global Director, Smallholder Farming Strategy & Steering, at Bayer AG’s Crop Science Division in Monheim, Germany.</span></div></div></aside></div><div class="Standard_bottom-utils__JNmpq"><ul class="PageUtils_container-bottom__NBym_ PageUtils_standard__FTgtj"><li class="PageUtils_list-item__HK3pt"><a 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But investors do not supply metrics about their impacts on individuals\u0026#8217; and families\u0026#8217; lives, and until they do, social impact reporting is unlikely to approach the level of robustness associated with financial and environmental reporting. The authors of this article describe how Bayer\u0026#8217;s Crop Science division has developed reliable stakeholder reported measures of the social impact of its inclusive growth projects based on an approach first pioneered in the healthcare sector.\u003c/p\u003e","topics":["Business and society","Sustainable business practices","Corporate social responsibility"],"primaryTopic":"Business and society","content":"\u003cp\u003eLarge companies around the world disclose sustainability information in their ESG reports. Much of the content is climate-related, but many companies also report on social impacts — the “S” in ESG. 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