ABSTRACT
Every nonprofit, every company, and every investor creates social impacts. The Social Impact Creation Cycle is designed to help investors plan for and create the impacts investors care about and to avoid creating negative impacts along the way. As investors', the Social Impact Creation Cycle helps bring clarity to logic models and thus enhances organizational accountability. Investments that create social impacts can take a variety of forms, including time, expertise, material assets, network connections, reputation, and other valuable resources. Social impacts are corporate annual and sustainability reports as well as in NGO progress reports, foundation annual reports, and external reports to donors, investors, and other parties. Corporations must make trade-offs between sustainability and financial performance as they face decisions related to labour practices, environmental responsibility, community activities, and the like. The identification and measurement of the social impacts of these corporate activities have significant implications for management decisions.
