Firms' Choice of a Social Impact Measurement Method to Evaluate Base of the Pyramid Strategies: A Decision Support Framework

Abstract

The need to measure the social impact of Bottom of the Pyramid (BOP) strategies has become a consensus in the field, but identifying how to approach such an undertaking remains a challenge for firms. This paper builds on a research collaboration with a Multinational Corporation (MNC) engaged in housing programs at the BOP. This paper proposes a framework to assist in the firm’s choice of a social impact assessment method according to its objectives. Three categories of social impact evaluation methods are identified: ready-to-use tools, in-house methods and statistical methods. The different objectives that a firm may set for its impact assessment are accountability and communication, program improvement in the short run, and innovation in the long run. We propose to link each of the objectives to one method category and thereby facilitate the MNC’s choice of a social impact assessment method.