Dimension 6: Balance financial and social performance
As a social enterprise, your organization needs to balance both financial and social performance. This means thinking through what appropriate growth means in the context of delivering value to clients, making sure your shareholders share your vision, and pricing your services to deliver both quality to clients and sustainability to the organization. Dimension 6 has four standards:
Standard 6a
The provider sets and monitors growth rates that promote both institutional sustainability and social goals.
Growth underpins financial sustainability, but overheated or irresponsible growth can signal a lack of focus on social performance issues. Use these resources to calibrate your institution's relationship with growth.
Standard 6b
Equity investors, lenders, board and management are aligned on the provider's social goals and implement an appropriate financial structure in its mix of sources, terms, and desired returns.
For providers that take on debt and equity investors, aligning expectations around risk and return are crucial for maintaining a double bottom-line focus. Use these resources to guide your thinking.
Standard 6c
The provider sets prices responsibly.
Your provider's strategy around profits should balance both your long-term institutional sustainability and the well-being of those you seek to serve. Use these resources to start a conversation in your institution about getting the balance right.
Standard 6d
The provider compensates senior managers in a way that is appropriate to a provider with stated social goals.
What do your staff pay scales say about your institution's priorities? Use these resources to get the balance right.