IMPACT is a change in an outcome caused by an organization. An impact can be positive or negative, intended or unintended. An outcome is the level of well-being experienced by a group of people, or the condition of the natural environment, as a result of an event or action.
THE 5 DIMENSIONS OF IMPACT
The “Impact Management Project” (now available on Impact Frontiers) convened a practitioner community of over 3,000 enterprises, investors and experts from 2016 to 2018 to build global consensus on how we measure, improve and disclose our positive and negative impacts. It has defined 5 dimensions of impact that enterprises create on people and the planet. These dimensions serve as a great guideline for anyone who wants to understand impact:
“What” tells us what outcome the enterprise is contributing to, whether it is positive or negative, and how important the outcome is to stakeholders.
“Who” tells us which stakeholders are experiencing the outcome and how underserved they are in relation to the outcome.
(3) How Much
“How Much” tells us how many stakeholders experienced the outcome, what degree of change they experienced, and how long they experienced the outcome.
“Risk” tells us the likelihood that impact will be different than expected.