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SPC

Introduction of
Social Performance Incentive

Social Performance Incentive is a project for measuring performances by social enterprises in terms of monetary values and compensating appropriately. Social Performance Incentive evolved from the concept of Social Progress Credit (SPC). SPC is an incentive based on social values. If we can establish a system for measuring and compensating performances of social enterprises in our society, it will be possible to activate an ecosystem of social enterprises through influx of investment and outstanding competent personnel.

Social Progress Credit

Compensation provided according to the performances in solving social issues

Advantages of Social Performance Incentive

  • Advantages of
    self-measurement

    Possible to understand where the
    values of our business
    are being created

    Possible to identify issues that can
    be improved on our own

    Possible to manage data

  • Advantages of measuring
    monetary value

    Possible to make comparison

    Reliability of repetitive measurement/person taking
    measurement

    Ease of communication

    Can be utilized as management index

    Ease of performance/cost-based
    resources distribution

    Provision of information on impact to
    aid decision making
    on investment

  • spas.socialincentive.org

    Social Value self-measurement

    Applications for participating SPC

    SV measurement with SV Report

    SV measurement Manual

SPC Performance at a Glance

사회성과인센티브의 연간 일정(자세한 내용 하단 참조) 사회성과인센티브의 연간 일정(자세한 내용 하단 참조)
Year (Incentive Paid) 2016 2017 2018 2019 2020 2021 2022 2023
Number of Participant
(Cumulative)
44 94 130 188 222 288 326 368

Application Instructions

  • Applicable Participant

    Any enterprise aim to solve social problems

    • Social ventures, Start-ups, Social Enterprises, Cooperatives etc.
  • Engagement Period

    4 years in total (4 times of measurement)

  • Measurement & Incentive

    Participant’s social performance are measured in monetary terms and cash incentives are
    provided in proportion once each year.

    • Measurement period starts in February each year
    • Measurement of the social performance of previous year (from Jan. to Dec.)
    • Provision of cash incentives depending on randomly assigned group
      (SPC adopts a RCT approach to verify the effectiveness of the incentives. The experimental group
      receives incentives while the control group only experiences measurement.)
    • Measuring Group (Control group): Provided with 5 million KRW identically every year
    • Incentive Group (Experimental group): Provided with 5 million KRW in the first year, then with cash incentives proportional to the measured social performance for the ramaining 3 years.

Yearly Cycle of SPC Operation

사회성과인센티브의 연간 일정(자세한 내용 하단 참조) 사회성과인센티브의 연간 일정(자세한 내용 하단 참조)

SPC Publication

To Commemorate 7 years of SPC(Social Progress Credit), we publicized <Impact in Place> which includes
the general performances of the projects so far along with the story of SPC participants(enterprises).

  • 사성인 1호 표지 이미지 사성인 1호 표지 이미지

    You can see the <Impact in Place> as a file in link below:

    Impact in Place

Collaboration with Korean municipal governments

* Most recent MOU with a municipality (Dec 2023)

Outcome-Based Funding collaborative

Project will be initiated in 2024 with Seoul City

Outcome-based funding(OBF) projects have been actively implemented as collaboration with multiple municipal governments such as
Hwaseong City, Jeju Province, and even Seoul City in South Korea.

Through the pilot projects with municipal governments, CSES aims to institutionalize SPC. Municipal governments can convince the local
council with data and enact a local ordinance allowing and supporting OBF in their various policies.

Outcome-Based Funding collaboration project
with JFRA (Japan Fundraising Association)

함께 하는 사람들 함께 하는 사람들 함께 하는 사람들 함께 하는 사람들

The Forum(May 16, 2023) was held to commemorate the launch of the OBF collaboration project between CSES and JFRA. It was attended by more than 300 participants, both online and offline. This included President Suk-kwon Na (CSES) as well as key organizations in the social impact field in Japan, related experts, and NPO support organizations.

The project will select four SEs and support them for 3 years. It will also provide cash incentives based on their social performance(outcome-based). We hope this project will maximize Japanese SE’s social impact and play a key role as part of the international SPC policy diffusion.

Partnership with WEF (World Economic Forum)

함께 하는 사람들

In January 2024, during the WEF Davos Forum, a joint pledge by globally renowned companies was announced for the achievement of UN SDGs and the resolution of social issues. The pledge is named the "RISE Ahead Pledge," with RISE standing for "Rallying Private Sector Investments into the Social Economy." It represents a commitment by companies to launch new initiatives or strengthen existing programs by 2030 for the achievement of UN SDGs and the resolution of social issues. Thirteen globally renowned companies including SK, Microsoft, SAP, and IKEA were invited as the first signatory companies of the pledge, recognizing them as leaders in the field of social innovation.

During the session at the Davos Forum where the pledge was announced, a report titled
"The Corporate Social Innovation Compass," was presented. The report, jointly published
by WEF and Deloitte, introduced exemplary cases of partnerships between business and
social innovation, including CSES’s SPC program.

Summary about SPC

"The initial findings from the SPC programme yielded positive results, with evident
growth in social value and enhanced financial stability among the participating social
enterprises. .... Corporations can play a crucial role in addressing societal challenges
while promoting economic growth, innovation and inclusivity. By collaborating with
social enterprises, they can further amplify their impact and create positive social and
environmental change. “Source: “The Corporate Social Innovation Compass:
Accelerating Impact through Social Enterprise Partnerships”, World Economic Forum, 12 Jan 2024

함께 하는 사람들

Since 2024, CSES has been collaborating with WEF GASE (Global Alliance for Social
Entrepreneurs) on the action agenda called "Redefining Value: From Outcome-Based
Finance to Tradeable Impact“

Learn more...