Introduction

Social and community impact play a central role in cementing and solidifying businesses' commitments to sustainability and good leadership. Research shows that creating a social impact can have lasting effects on businesses as well as foster sustainability [1], [2]. Businesses usually create social impact through Corporate Social Responsibility or social investing programs, which, according to the Stakeholder Theory, entails ethical business conduct where businesses acknowledge and fulfill their responsibilities to the shareholders as well as the broader community and environment. Companies should conduct their operations in a socially responsible and sustainable manner, considering the implications for all stakeholders [3]. The stakeholder theory encourages businesses to go beyond profit maximization and to actively contribute to societal well-being, ethical practices, and environmental sustainability, postulating that a firm's performance is positively related to a stakeholder management approach that seeks fair relationships and a healthy balance among all stakeholders’ interests [3], [4]. Consequently, businesses committed to sustainable development must promote positive social impact through corporate social responsibility and social investing initiatives. Although ASEAN countries work tirelessly to advance social impact through social enterprising [5] among other initiatives, they face multifaceted challenges that impede the attainment of their social sustainability goals. Recognizing the importance of social impact in the ASEAN region’s sustainability, business leaders and entrepreneurs from diverse sectors in Asia came together in an annual summit to brainstorm ideas to navigate key challenges and potential solutions to social and community impact, where they shared key insights and offered a roadmap for navigating the complexities of social impact, within the broad themes of championing global sustainability and public policy. The challenges revolved around difficulties in measuring social impact and problems with the proper coordination of CSR programs.

Challenges of Measuring Social Impact

One of the leading challenges of measuring social impact entails the accurate collection and processing of big data. Janak, one of the delegates in the conference, highlighted this challenge arguing that “big data is very important but gathering the data is likewise very important. You need to get data first and that is when coordination is very important.” Chevyl*, another delegate, echoed these sentiments by submitting that “we have data but how do we translate them to show that we have made an impact?” A report from a 2015 conference identified big data as a central role in propelling sustainable development [6]. In another study, Zhang et al. [7] reported that “if organizations do not pay attention to the sustainability of [big data analytics capability the social impact will be temporary” indicating the centrality of big data in fostering lasting social impact. Additionally, Ronald*, a key participant in the discussion highlighted the limited use of big data processing and other technologies, arguing that “what I realized from this morning - the lack of application of technology to measure social impact initiatives… lack of usage such as big data, AI and machine language to measure the social impact - how can we take the correct approach.'' Since technology and big data are usually associated with more accuracy, this finding indicates a need to urgently address the challenges associated with accurately measuring social impact.

On the other hand, participant 2, another panelist, commented that “we have data but how do we translate them to show that we have made an impact?” implying that proper data handling and interpretation is a main issue that needs to be addressed. This problem also manifests in the form of deciding and handling valid metrics and KPIs regarding social impact.

For instance, the International Finance Corporation [8] reported that demonstrating robust ESG commitments is becoming increasingly difficult, especially due to the increasing concerns regarding green- and sustainability-washing. The authors pointed out that while attempting to measure social impact, “Questions may arise about the degree of social KPI relevance and materiality to the borrower’s business and to the local setting, and whether the targets are meaningful and ambitious.” From the summit discussion, Ronald* also noted that due to lack or rarity of objective metrics, “now we are just playing a guessing game from what I can see here. For example, some social impact studies on poverty in Melaka cannot be applied in Kelantan. There is no measurable data that we can refer to.” The lack of inadequacy of objective and reliable metrics that can be applied across different contexts, geographical or otherwise, poses problems in accurately assessing the impact of social programs. This may lead to a lack of actionable updates, making it difficult to implement evidence-based initiatives for bigger and more effective social impact. The challenge of metrics and KPIs is also exacerbated by the suboptimal knowledge and application of modern technologies such as AI.

The use of artificial intelligence is associated with improved efficiency and streamline decision-making processes, which is beneficial to businesses in the long run. Reducing the decision-making periods by employing the assistance of this cutting-edge technology can foster cost-savings and facilitate more accurate decisions. As such, modern technology can help stipulate the application of social impact initiatives. Relying purely on human agents in this era of technology may lead to subpar and slower decisions compared to regarding the best social impact practices. During the summit, one delegate identified the centrality of AI and other modern technologies by stating that “The future is AI in general.” However, another participant noted that there is a general “lack of usage such as big data, AI and machine language to measure the social impact.” Coupled with the lack of reliable metrics and KPIs, the widespread lack of technology application in measuring and assessing social impact could lead to poor decision-making. Correct use of the relevant technology can therefore improve these processes and ensure the best practices in social impact initiatives.  To propel corporate commitment to enhancing social impact in Asia and beyond, it is imperative to successfully address the challenges identified in the summit. In this light, the delegates proposed several viable solutions to the concerns.

Solutions to the Identified Challenges

Identify and Streamline Objective Metrics

One of the most pertinent matters at the heart of the discourse was the constant challenge of effectively measuring impact due to lack of objective and reliable metrics. A banking executive pointed out the struggle to identify metrics that truly capture the essence of social programs. Stakeholder buy-in and awareness, internally and externally, emerged as a recurrent theme. The dialogue underscored the need for a balanced approach incorporating quantitative and qualitative data. A human rights consultant brought this into focus, stating, "contextualizing to rights holders is essential; it's not a one-size-fits-all scenario." Participants echoed these sentiments. A banking executive with the Development Bank of the Philippines stressed the need to go beyond numbers to truly understand the impact of our social programs. The discourse collectively reinforced that meaningful social impact goes beyond numbers, requiring a deeper understanding of the human context. As such, researchers and businesses should devise contextualized metrics to accurately measure the impact of social programs and promote evidence-based initiatives to foster sustainable social development. The effect of accurate metrics and measures can be boosted through open and effective communication with communities targeted by the social impact initiatives.

Transparent Communication with the Public

Community engagement has been recognized as a central pillar in the sustainability matrix. Engaging with the community through effective and transparent communication promotes sustainable decision considering the interests of all stakeholders including the decision makers and the primary targets of the social impact programs [9]. This collaborative approach can improve acceptability of decisions, community commitment and effectiveness of initiatives owing to the inclusiveness fostered by stakeholder engagement. In relation to measuring the impact of social programs, this collaborative approach encourages honest feedback from the community members, allowing corporates to effectively assess their programs. Relatedly, summit participants highlighted transparent communication as central to effective measuring and disseminating information about social impact projects. One participant in particular submitted that "sharing more information with consumers is key; it's about creating an authentic connection.” Additionally, a human rights consultant highlighted the necessity of sharing social impact information with the general public, in particular students, to raise awareness and public buy-in of initiatives. Discussants also emphasized that authenticity in public communications about projects is important and that publicly sharing information about ESG projects helps strengthen the internal business case for increased social responsibility efforts. Thus, community engagement and transparent communication can facilitate sustainable social impact programs. Furthermore, constant engagement and communication is also a central pillar for collaborations, which further positively influence sustainability efforts.

Impactful Partnerships and Collaboration

Collaborative approaches have also been shown to positively impact business and social programs.  Yue et al. [10] investigated the impact of partnerships and information sharing on corporate sustainable performance through the lens of strategic alliances and social networks. The study findings revealed that partnerships impact sustainable performance positively and information sharing mediates the relationship between sustainable performance, trust, and cooperation. The summit participants also echoed this view, noting that cross-sector partnerships can facilitate a more impactful social footprint. The insights shared by an NGO representative emphasized the game-changing potential of cross-sector partnerships, highlighting how teamwork can drive collective progress. Additionally, there was a shared recognition among participants of the importance of accurately representing progress on social impact initiatives. This included a collective call for third-party verification in sustainability reports, a practical step against "green-washing.” Owing to this urgent call, there is a need for reliable establishments to step in and work collaboratively to ensure impactful and change-oriented partnerships in regards to social impact. To this end, the sustainability research champion ACES Institute stands as a beacon for a sustainable future through evidence-based interventions.

The Role of the ACES Institute

In addressing the challenges and opportunities identified in the conference, businesses can find and leverage valuable insights and support from the ACES Institute and its partners. With its knowledge partners, Aubrens and MORS, the Institute plays a pivotal role in advancing ESG and sustainability through research, comprehensive studies and analyses, which contributes to a deeper understanding of both the qualitative and quantitative aspects of social impact. This involves developing contextualized metrics that go beyond traditional quantitative measures, allowing businesses to gain a nuanced understanding of their impact on stakeholders and communities. This synergy aids businesses in aligning their impact assessments with the overarching goals of sustainability and social responsibility by meticulous analysis and adoption of objective and reliable metrics that are not only relevant to their operations but also meaningful and ambitious in the local context. This alignment addresses the challenges posed by the lack of standardized metrics and promotes evidence-based initiatives for sustainable social development.

In conclusion, the ACES Institute emerges as a valuable resource for businesses committed to navigating the complexities of the ESG landscape. By providing nuanced research, stakeholder engagement strategies, impact assessment alignment, and promoting impactful collaborations, the institute contributes significantly to the overarching goals of sustainability and social responsibility in the Asian region. Businesses can leverage the expertise of the ACES Institute to translate discussions into actionable initiatives, fostering positive social impact and contributing to the broader global sustainability agenda.

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