The project aims to develop models and methodologies aimed to measure the socio-economic impact brought by large corporations to their ecosystems thanks to their business activities. These approaches can be used both ex post, for measuring a company’s results, and ex ante, for supporting strategic decision-making processes. Based on such approaches, since 2016, the research group has been supporting Eni to measure the local content generated in different contexts (e.g. Italy, Ghana, Angola, Egypt).
Measurement of the contribution of large corporations to socio-economic development
About the project
Principal Investigators: Marika Arena, Giovanni Azzone
Researcher team: Giovanni Azzone, Laura Dell’Agostino, Andrea Flori, Giulia Piantoni
Funders: Eni, other corporations
Duration: 2 years
KEY RESEARCH QUESTIONS
In the current competitive context, the capacity of a company of demonstrating its contribution to the socio-economic development of the ecosystems where it operates has become crucial. A company should be able to show not only that it can limit and eventually mitigate possible negative impacts, but that it can create shared value for different stakeholders (governments, local communities, suppliers, customers, employees, partners).
In order to evaluate this ability, the research group has developed models and methodologies aimed to measure the socio-economic impact generated by large corporations through their activities. These approaches rely on both qualitative and quantitative research instruments, depending on the objectives a company aims to pursue with this analysis, the characteristics of the context where the analysis should be developed and data availability. The outcome of these approaches can be used both ex post, in order to measure the results of a company’s activities, and ex ante, in order to forecast them and consequently support strategic decision-making processes.
These models have been developed, adapted and applied in different organizations, in both developed and developing countries. One key reference is provided by Eni. Since 2016, the research group has supported Eni to measure local content generated in different contexts (e.g. Italy, Ghana, Angola, Egypt …) by combining direct, indirect and induced effects, in connection to three domains: Economic impact, Employment impact, Human capital development. The research group has adapted and customized to model to different local settings in order to take into account the context characteristics and the specificities of the different environments.