Accountability and social impact measurement for a third sector supported housing organisation

Abstract

The concept of social accounting dates back to the mid 1970’s as one response within third sector organisations to traditional monetised accounting systems. As third sector organisations face increased funding challenges alternative reporting and measurement systems support information provision within a competitive funding market. A growing accountability movement within the sector supports this increased reporting. Yet, despite a substantial effort towards addressing accountability concerns and taking the fact that social accounting is an important enabler of third sector organisations; the concept of accountability and its role are not well specified or theorised. The focus of much literature is on the theoretical or political determination of a business with the concept of accountability as a mechanism to demonstrate moral obligation. Yet, there are few in-depth studies illustrating the issues in designing, implementing, and using social accounting in practice. The thesis is set within a third sector supported housing organisation and demonstrates the nature of reflective change and development within a social situation. Hence, the objective of this study was to define a practical model of accountability in respect to ‘social accounting’ whilst exploring the concept of ‘social impact measurement’ and its purpose within the case organisation. The study involves theoretical and practical understandings of developing a social impact measurement framework from the initial plan, design, implementation and usage of the framework. This research extends knowledge of accountability practice as cumulative process over time, an understanding of the potential challenges to such development in nonprofits, and draw attention to the complex, interrelated and cumulative relationships between accountability dimensions in practice. The research also illuminates how social impact measurement supports organisational dynamic change and development and the accountability obligation to stakeholders throughout social impact measurement implementation. The chosen methodological framework takes that of an insider action research approach to offer an explanation of the journey of understanding the theoretical alongside the practical experience. This is achieved through the critical reflection on the development of social impact measurement within the case organisation. The focus is to demonstrate the reflective ongoing process of change and maturation in a social situation in the ii workplace within a third sector supported housing organisation. This study highlights the importance of measuring social impact in facilitating and shaping a practical model of accountability in respond to the sustainability of nonprofits within a competitive funding market.