How to measure the intangibles? Towards a system of indicators (S.A.V.E.) for the measurement of the performance of social enterprises

Abstract

The paper presents the results of a research project the principal aim of which has been to elaborate and test a measurement tool for non-profit organisations (NPOs) called SAVE (Social Added Value Evaluation) operating in the welfare area (social and health services). The basic idea is to select a sample of 12 NPOs (six organisations of volunteers and six social cooperatives) dealing with services for disabled people, elderly, physical impaired, mental illness, youth, families with problems, etc., and to carry out an in-depth sociological analysis, using the case study model of social and organisational inquiry. NPOs are regarded as special organisations because they have a triple bottom line: an economic one, a social one (volunteers, workers, users, clients, etc.) and an environmental one (local community), reflecting their various stakeholders. Our hypothesis is that NPOs are characterized by two main features: the capacity to produce relational goods and their ability in generating social capital in the community. We will never find a purpose for our nation nor for our personal satisfaction in the mere search for economic well-being, in endlessly amassing terrestrial goods. We cannot measure the national spirit on the basis of the Dow-Jones, nor can we measure the achievements of our country on the basis of the gross domestic product (GDP). Our gross national product counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for those who break them. It counts napalm and the cost of a nuclear warhead, and armored cars for police who fight riots in our streets. It counts Whitman's rifle and Speck's knife, and the television programmes which glorify violence in order to sell toys to our children. Yet the gross national product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile. And it tells us everything about America except why we are proud that we are Americans. It measures everything, in short, except that which makes life worthwhile. And it tells us everything about America except why we are proud that we are Americans. Speech by Robert Kennedy, 18 March 1968, University of Kansas.