Iris+

Definition

iris+ is a comprehensive impact measurement framework designed to evaluate the social, environmental, and economic outcomes of businesses operating in low-income markets. It provides a standardized approach to assess how well innovative business models address poverty by measuring their impact on the communities they serve and promoting accountability among social enterprises.

5 Must Know Facts For Your Next Test

1. iris+ was developed by the Global Impact Investing Network (GIIN) to provide businesses with tools to measure and communicate their impact effectively.
2. The framework allows organizations to assess both qualitative and quantitative aspects of their impact, facilitating better decision-making and resource allocation.
3. iris+ incorporates indicators that are relevant to various sectors, making it adaptable for different types of enterprises operating in diverse contexts.
4. Using iris+ can help attract investors who are increasingly interested in socially responsible investing and seek clear evidence of impact.
5. The implementation of iris+ can enhance transparency and accountability in social enterprises, fostering trust among stakeholders including customers, investors, and communities.

Review Questions

• How does the iris+ framework enhance the effectiveness of businesses aiming to address poverty?
  • The iris+ framework enhances the effectiveness of businesses addressing poverty by providing a standardized method for measuring their social, environmental, and economic impacts. This enables organizations to clearly communicate their outcomes to stakeholders and investors, demonstrating accountability and building trust. By utilizing this framework, businesses can identify areas for improvement and adapt their strategies based on data-driven insights, ultimately increasing their overall effectiveness in creating positive change.
• In what ways does iris+ support social enterprises in attracting investment?
  • iris+ supports social enterprises in attracting investment by offering a clear structure for demonstrating measurable impact. Investors are increasingly seeking opportunities that not only yield financial returns but also generate significant social benefits. By using the iris+ framework to provide detailed evidence of their impact, social enterprises can appeal to these investors, showcasing how their initiatives align with both profit motives and social goals. This alignment helps to build confidence among potential investors about the viability of the enterprise.
• Evaluate the significance of incorporating qualitative and quantitative measures in the iris+ framework for understanding business impact.
  • Incorporating both qualitative and quantitative measures in the iris+ framework is significant as it provides a holistic view of a business's impact on communities. Quantitative data offers numerical evidence of change, such as increases in income or access to services, while qualitative insights capture personal stories and contextual factors that numbers alone cannot convey. This dual approach allows stakeholders to understand not just 'what' changes occurred but 'how' those changes affect individuals and communities. Ultimately, this depth of understanding informs better decision-making, enhances strategic planning, and leads to more meaningful engagement with target populations.

Related terms

Impact Measurement: The process of assessing the changes that can be attributed to a particular intervention, program, or business model, often used to evaluate social and environmental outcomes.

Social Enterprise: A business model that seeks to generate revenue while also addressing social issues and creating positive societal impact.

Triple Bottom Line: A framework that evaluates a company's commitment to social, environmental, and financial performance, emphasizing the need for sustainable practices.