How do you measure social value?

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In the era of social media, people power has never been greater, but that means an increased demand for transparency. They want to feel they are part of the process.

Richard Gibbs View Profile

But methodology and metrics to value social benefits continue to slowly evolve in Australia, and “there are no user guides or hard and fast rules”.

“How do you value attachment to native land among Indigenous Australians, for example?” he asks.

Research, fieldwork and longitudinal studies provide some guidance, but measuring social value starts with speaking to the people who will ultimately benefit.

“They’ll give you a good method of prioritising the benefits,” he says.

Gibbs notes that the Social Impact Measurement Network of Australia (SIMNA) is playing a leading role in fostering ongoing discussion on social valuation through stakeholder engagement. 

Listening to communities can unearth rich seams of value. Gibbs points to a youth centre project constructed shortly after Sydney’s Macquarie Fields riots in 2005. “We found the community members, many who were Indigenous, placed a very high value on having a place where young family members could be safe and interact with others in a traditional way – and that was something we hadn’t considered.”

Attributing a dollar figure is challenging but not impossible. Gibbs points to the Social Value Bank Australia, based on a similar more established model in the United Kingdom, which help businesses ascribe a “well-researched economic value” on social services and programs.

“We are applying cost-benefit analyses to more and more projects, but we are still pushing the envelope on some valuation parameters and benchmarks,” he adds.

Take social housing, for instance, which eases pressure on health systems and refuges, enhances health and wellbeing, and reduces contact with the justice system.

“We know social housing reduces recidivism in young people, but you can’t assume that every young homeless person will interact with law and order, so we need to take this into account.”

Gibbs says governments must consider social value when assessing the merits of projects, but the development industry also has an important role to play.

“Where people think a process hasn’t been transparent, they become suspicious of the motives of both developers and policy makers. As a consequence, they don’t share the journey or take ownership and become increasingly alienated – which has a direct and meaningful impact on the quality of the outcomes.

“In the era of social media, people power has never been greater, but that means an increased demand for transparency. They want to feel they are part of the process.”

This article was first published in Property Australia.