Measuring Social Value

Value, among other concepts, has acquired different definitions over time and across different spheres. Economists define value as price while Sociologists hold values accountable for the maintenance of social order[1]. Social value, as such, is dealt with differently by different groups of society. The measurement of social value is considered important from all sectors. Foundations and donors want to know the amount of social value their investments would create, government officials have to defend their budgeting decisions, and non-profit organizations need to measure social value to showcase their effectiveness to beneficiaries. 

Although many metrics to measure social value have emerged over time, none of them has provided a full coverage solution to the problem of measuring social value. This is mainly due to the different and sometimes conflicting definitions of value in different sectors. In Measuring Social Value[2], Geoff Mulgan approaches the problem with an economical view, asserting that social value is the result of the dynamic between supply and demand. He also points out that his approach, like others, is only applicable to certain spheres and future metrics need to be formulated using an amalgamation of cross sectorial views. While he proceeds to give readers certain guidelines for future measurement of value such as Elusive Quarry and Constructing Value, I believe that he fails to help us on how to create metrics with an objective approach to value.

 

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[1] Puja, M. (2013). The Meaning and Functions of Social Values | Sociology. [online] YourArticleLibrary.com: The Next Generation Library. Available at: http://www.yourarticlelibrary.com/sociology/the-meaning-and-functions-of-social-values-sociology/8522/ [Accessed 28 Sep. 2015].

[2] Mulgan, G. (2015). Measuring Social Value (SSIR). [online] Ssir.org. Available at: http://ssir.org/articles/entry/measuring_social_value [Accessed 28 Sep. 2015].