Let’s Talk Accounting & Finance lunchtime talk will be presented by Dr Julia Morley
Wednesday 26 February at 12:00 in 32L.B.07
please register here: bit.ly/2SIRFCd
When measurement matters: The ethics of social impact bonds
After years of austerity, cash-strapped local authorities have turned to philanthropically-minded private investors to finance social care projects. Increasingly, they do so using a payment-by-results structure known as `social impact bonds’ (SIBs). One interesting feature of SIBs is that the financial returns to investors are contingent on contracted social outcomes, for example the reduction in prisoner re-offending rates. As a result, measurement of social outcomes has become the focus of much attention. Commentators argue that this measurement ensures that financial resources are channelled towards the most effective social interventions – which is surely good for society. But is measurement always beneficial? Julia Morley reviews evidence from SIBs, finding that that the way in which we measure outcomes matters. She cautions that outcomes measurement, while intended to yield effective interventions, can paradoxically generate a number of serious ethical problems for society.