ABSTRACT

This chapter explores how the growth of data analytics, in the business and social domains, is creating the conditions for impact investing and corporate social responsibility to converge around a more scientific approach to shared value creation. The impact investment movement has been a pioneer in the exploration of the relationship between financial returns and social value. Impact investors are, in many respects, leading the development of measurement processes that are designed to improve our understanding of the relationships between social and enterprise performance. The Financial Valuation Tool is a practical example of how integrated social and business modelling can be applied to support decision-making related to determining how value for a company and value for a community are interdependent. The integrated model is designed for evaluating a single or series of investments, such as a mine or pipeline, and the corresponding social implications for communities.