1. ARUN’s Social Impact Monitoring
Measuring social and environmental impact:
How to evaluate and monitor social return on investment,
International Symposium on Social Investment
7/Oct/2012
ARUN, LLC 1

2. ARUN’s Social Impact Monitoring
…is still in the process.
ARUN, LLC 2

3. ARUN’s Vision/Mission
Through the vehicle of social investment,
ARUN aims at creating the society which can bring every
person's ability into full play regardless where s/he is born.
Financial and Technical Support
Investees in Cambodia Investors in Japan
Social Individuals/Firms
Entrepreneur
s
Platform for
Social Investment
Social Impacts
Financial and Social Return
ARUN, LLC 3

4. Objectives of social impact monitoring
1. 1. Deepen understanding about the
Understand investees’ business
about •Understand what entrepreneur is trying
the investees to achieve in terms of social impact.
•Keep track of what is happening
•Monitor and evaluate the social and
environmental impacts.
2. Feedback to Partners
•Communicate with partners (investors).
3. 2.
Feedback to Feedback to 3. Feedback to Investees
•Communicate with investees.
Investees Partners
ARUN, LLC 4

5. Investment Criteria
Social Business
Entrepreneur’s Commitment to ビジネスモデル
Business Model
Social Value Creation
財務 Financial
Employment
ガバナンス
Governance
Social
Value
Community リーダーシップ
Leadership
Financial Return
ARUN, LLC 5

6. General DD criteria/monitoring indicators
Indicator Example of criteria
Entrepreneurship Mindset as a social entrepreneur
Team awareness of social mission
Business Model Innovative business model
Employment Job Creation ( especially the vulnerable)
Income generation
Safe and pleasant working environment
Skill development for employees
Enhanced self-esteem and confidence
Local community Use of local resources
Empowerment of local economy
QC Quality control
Environment Environmental effort
ARUN, LLC 6

7. Monitoring methodologies
Logic Model Analysis
• Investees’ social mission and objectives are the starting point of monitoring.
• We try to measure outputs/outcomes/impact from business we invest in.
Social
Mission ＆ Inputs Outputs Outcomes Impact
Objectives
Our focus
Stakeholder Analysis
• All the important stakeholders are identified, such as employees, farmers, local
community and directly monitored.
ARUN, LLC 7

8. Case Study:
Sahakreas CEDAC(SKC)
Organic Rice Project
ARUN, LLC 8

9. Overview of SKC’s Organic Rice Project
CEDAC’s Vision
CEDAC envisions a Cambodian society where small farming households enjoy good living
conditions and strong mutual cooperation, with the right and power to determine their own
destiny, as well as playing an important role in supplying healthy food for the whole society/
1 ． Introduction of ecosystemic 2 ． Farmers’ associations
agricultural technology
⇒ 100,000 households ⇒ 4,000villages (30 ％ of total
improved their productivity villages ）
⇒ Saving groups 4,500
⇒ Farmers’ associations 1,000
System of Rice Intensification (SRI)
3 ． Creating the supply chain
Farmers Producers Associations Sahakreas CEDAC Market
(Domestic, Intern’l) 9
ARUN, LLC

10. Developing Monitoring Indicators
CEDAC’s Vision Improved living Important
condition for farmers
stakeholder
Vision Good health Organizing Link to the
&knowledge &Environment farmers market
Teaching SRI Supporting farmers’ Purchasing rice from farmers
techniques associations and selling in the market
CEDAC SKC
Indicators Organic Rice Farmers Outreach
Income generation
Forming association
Vision, knowledge and skill improvement
Local economy Positive impacts on the local economy
ARUN, LLC 10

11. Summary of findings
Reaching 2,668 • With SKC in the market, the price for paddy increased due to
households
1998t-paddy purchased,
competition among middlemen and SKC.
• SRI technique leads to cost reduction for farmers and
generating income of improvement of the surrounding environment.
824,000USD • Producers of organic rice form association, building social
infrastructure in the rural area.
• Organic rice project contributes to the other
economic activities in the community, such as
rice wine production and community business Vitalizing the local economy
by association members.
ARUN, LLC 11

12. Challenges
• Objective  Subjective
• Quantitative  Qualitative
• Common measurement  Case specific
• Preciseness, depth  Monitoring costs
• Boundary of monitoring/evaluation
• Integrated evaluation of financial and social
return?
<Financial evaluation> <Social evaluation>
•Profitability •Employment
•Stability •Impacts on local community
•Growth rate •Environment

13. Thank You
for your attention !
ARUN, LLC 13