Performance Measurement for Social Enterprises

Abstract

Over the past 20 years, the issue of performance measurement in Social Enterprises (SEs) has gained increasing relevance among researchers and practitioners. From an academic perspective, there has been an explosion in methodologies and tools for assessing social performance and impact, but with little systematic analysis and comparison across different approaches. From a practitioner perspective, SEs need to start measuring their performances in a systemic way, in order to support decision making and ensure accountability towards their stakeholders. In this context, this paper aims to contribute to the state of the art literature by developing an approach that could be applied to/by SEs to measure their results with respect to social, environmental and economic impacts. The proposed approach consists of a “general” PMS model for SEs—i.e., the performance dimensions that should be measured—and a stepwise method to be used by SEs to develop their own PMS. For sake of clarification, the proposed approach is applied to the case of an Italian SE competing in the energy sector to develop a set of key performance indicators.