Product Social Impact Assessment
Social impact is the effect of a product on three stakeholder groups: workers, consumers and local communities. These stakeholder groups are correlated with the different life cycle stages of the product: sourcing, manufacturing, use phase and end-of-life.
Unlike other methods, Product Social Impact Assessment looks at the product level instead of the corporate level. The method identifies points of excellence, improvement opportunities and social hotspots throughout the life cycle of a product, and does not just focus on the supply chain and managing risks. The development of this method is an important step towards establishing a standard for social impact assessment.
Product Social Impact Assessment is designed to address three main objectives:
- Make positive and negative impacts of products measurable and visible
- Support decision making and communication at product level
- Contribute to overall sustainability assessment
The method is described in the Handbook for Product Social Impact Assessment and was developed by the Roundtable for Product Social Metrics, a collaboration of twelve multi-industry market-leading companies.