Insights for Measuring Social Value: Classification of Measures Related to the Capabilities Approach

The measurement of performance and the evaluation of social change efforts are vital yet challenging issues for practitioners and researchers in the social sector. Although tools exist to measure social value, they tend to focus on converting non-monetary costs and benefits into monetary terms to demonstrate the cost-effectiveness of operations. The capabilities approach provides a value-based alternative that could potentially enable a broader assessment of a project’s impact; this approach encapsulates societal-level factors, beneficiary perspectives, and a more holistic view of a beneficiary’s life. Ultimately, our goal is to raise the following question in the social sector field: what might a capabilities approach to social value measurement that is suitable for practical application by social sector organizations look like? The purpose of this article is to introduce the theoretical framework and to present what some of the measures and instruments might look like, at least in part, based on applications in other contexts.