Measurements used to calculate the return on social investment should include

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BlackTom AI · Accepted Answer

When considering how to assess the return on social investment, the focus is on social impact metrics rather than purely financial or operational metrics.
Option 1: 'the amount of corporate donations and volunteer hours.' This choice aligns with common social ROI approaches, which track inputs like donations and volunteer time to gauge the organization’s social activities and commitments. It directly reflects the social portion of the investment.
Option 2: 'the changes in both share price and dividends.' These measures are financial market indicators and reflect investor sentiment and company financial performance, not the social impact or community benefits generated by social investments.
Option 3: 'the increases or decrease in overall labor productivity.' While productivity is important for operational efficiency, it is not a direct measure of social impact or return on social investments, which are typically framed around benefits to society, communities, or stakeholders beyond the firm itself.
Option 4: 'the before and after inventory capacity.' Inventory capacity changes relate to supply chain or production capacity, again mainly reflecting internal operations rather than societal outcomes or social value created by the investment.
In summary, the most relevant options for measuring social ROI are those that quantify social inputs and activities—namely donations and volunteer hours—while the others pertain to financial performance or internal operations rather than social impact.

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Measurements used to calculate the return on social investment should include

View Explanation

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