The social economy was introduced to support social services by the state as demand for welfare expansion and job creation intensified as income polarization and sudden mass unemployment were aggravated following the 1997 IMF financial crisis.
With the introduction of the social economy, social enterprises are receiving attention. Against this backdrop, the government enacted the Social Enterprise Development Act 2007 to support social enterprises, and the purpose of the nation's social enterprises is to solve the growing number of demand for welfare services and to simultaneously perform the functions of creating jobs and supporting vulnerable people due to large-scale unemployment.
Unlike ordinary companies, it is very difficult to measure value for social and economic companies. Indicators such as SROI, BSC and IRIS CEA developed abroad have been developed, but it is difficult to apply them to Korean social and economic organizations.
To address these problems, the Korea Social Enterprise Development Institute has developed a social value index for 2017 and recommended it to be used starting in 2018 and is currently in the process. Through the 2018 Manual on the Utilization of Social Value Indicators, we are going to study whether social and economic companies are properly measuring their value.
The study focuses on studying social value indicators. For this purpose, the research target was limited to Jeollabuk-do in order to derive data by actually allying social value tables to businesses, while the selected companies selected two social enterprises, two preliminary social enterprises and two start-up teams of social enterprise businesses that had moved or are currently housed in social campus-on in North Jeolla Province, and the organization cooperated with the overall economic development index to achieve concrete and objective results in evaluating social value tags (SVI).
Under the circumstances where social entrepreneurship projects have been underway since 2011 and are currently underway, the social entrepreneurship promotion projects were selected for those established from 2014 to 2017, when the social enterprise development projects were deemed to have been in place, and were evaluated on the social value index.
The value measurement of a social enterprise was reviewed according to the value, type and method of measurement of the study, including: First, the study of measuring the value of a social enterprise or a particular entity, secondly, the study of the various types of value to be measured, and thirdly, the study of various value measurement techniques (Kim Hye-ran, 2013).
The study was conducted with a value index of 14 values, which is a measure of social value, and the contents of the indicators were largely studied as indicators of innovation, social performance and economic performance.
Pre-research was largely divided into three categories to review studies related to economic and social performance assessment, sustainable management, and social value indicators.
The Social Value Index (SVI) showed that the higher the number of companies with high levels of work prepared with social missions, the better the benefits of a particular organization (form), the arbitrary creation of evidence data, the increase in the work of personnel, and the variety of problems in social value tables.
After applying the Social Value Index (SVI) for the first time in 2018, it has been supplemented by the Social Value Index (SVI) in 2019 and is expected to be supplemented in the future.
As a social enterprise, some companies may have depreciated due to lack of preparation for the social value index (SVI) while quietly proceeding with the realization of social values.
However, what was commonly heard by social and economic companies about the social value index (SVI) was positive responses that the index had much to be used in the management of companies.
According to the results of the survey of satisfaction with the social value index, the indicators of the pursuit of social values, which measure social performance, and the establishment of a social performance management system, need to be deleted or supplemented in detail.
This is because there is little difference between entities in measuring value indicators and the likelihood of subjective intervention is high. There are also indicators that need to be refined and developed. Among the indicators of social performance and perspective, seven indicators of business activity and organizational operation are so. It is also an indicator item that received generally satisfactory scores in the survey. The composition of indicators should be further refined and developed into indicators that reflect local characteristics. Economical performance and indicators should be improved across the board.
This is because the results of the assessment vary depending on the type of social enterprise. Indicators of innovation and perspective need to be eliminated or supplemented. This is because the indicators are non-metric and are not objective.
The government's development and application of a social value index that evaluates and measures social enterprises in accordance with the situation in our country is a very positive aspect.
However, I believe that to raise awareness of the social economy and to raise awareness of the social value index, we need to complement and improve the steady and systematic social value index and hope that this change will have a great impact on the development of the social economy.