Challenges of impact measurement in an emergent social economy

Abstract

The social impact measurement theory and practice is an early emergent field in Romania, despite all the recent significant advances and of the maturation of the topic at the international level. However, even if the size and dynamics of the social economy sector are not yet comparable with European countries with tradition in the sector, Romania faces a trend of discovery, re-discovery, and development of the social economy, present in a diversity of organizations and fields and models of classic or highly innovative social enterprises. Advancing social impact measurement in Romania becomes imperative for public authorities and also the whole society to understand how much positive social change can be attributed to the social economy organizations. The main objective of this paper is to test the effectiveness of the impact indicators proposed by the Ministry of Labor and Social Justice (MLSJ) in the indicative guidelines, which were elaborated after the adoption of the Methodological Norms for applying the Law of the Social Economy by Government Decision no. 585, on 10 August 2016, and which represents the first official regulatory attempt of impact measurement. Applicative research will be carried out in two social economy organizations active in the social services field (Heart of Child Foundation from Galati county, and Charitable Foundation Sf. Daniel from Cluj county, Romania) for analysing the current metrics used in measuring the social impact in the last three years (2017 – 2019), and the relevance of the indicators proposed in the indicative ministerial framework for their organizations. After reviewing various international approaches and frameworks of impact measuring, testing the indicative impact indicators proposed by the MLSJ, and having in-depth interviews with the managers of the analysed social enterprises, the article concludes with a set of recommendations for the development of a more effective impact measurement framework.