Social Capital Externality Valuation (SCX™)

Social Capital can be defined as "the institutions and relationships established within and between communities, groups of stakeholders and other networks, and the ability to share information, to enhance individual and collective well-being". Social and relationship capital includes:

  • Shared norms & common values and behaviors
  • Key relationships and the trust and loyalty that an organization has developed and strives to build and protect with customers, suppliers and business partners
  • An organization’s social license to operate (International Integrated Reporting Council)

Some business models, company policies and CSR activities are designed to improve such institutions and relationships, and in doing so, will usually generate positive externalities (e.g.: improvements in public health, societal job creation, environmental conditions, etc.).

Our SCX™ Model is a context-specific approach towards valuation of Social Capital Externalities (SCX) generated by a firm through its business model, corporate policies, and CSR activities. It requires a bespoke approach and analysis to determine and estimate impacts of company’s activities on human, natural and social value addition to community/society. It also integrates qualitative assessment (i.e. improvement in gender empowerment, family welfare, etc.) in addition to quantitative measures of the impacts of social capital externalities.

Our SCX™ Model is also applicable to CSOs who can thus value the benefits generated by their activities, for fund raising, "MIS" & donor reporting. Our analysis includes computing a Social Return on Investments (SROI) for both Corporates and CSO's.

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