Modern approaches to estimating social effects from investments

Abstract

The article analyzes the main directions of estimating the social effect of investing. The importance of a comprehensive assessment of the social effectiveness of investment projects to ensure sustainable socio-economic development of the country, region and individual enterprise is emphasized. It is noted that during the preparation for the analysis of the social effects of investing it is necessary to take into account that some of the manifestations of the social effect can be accurately measured, but in other cases only qualitative assessments and expert conclusions are possible. Two basic approaches to assessing social efficiency are considered: Cost-Effectiveness Analysis (CEA) and Cost-Benefit Analysis (CBA). It is emphasized that quantitative methods are more popular among corporations that use them to make intangible results more tangible and use the measurement of social consequences for decision making and control. However, in Ukraine it is recommended to use these methods for both private and public organizations. According to the results of the study, the main approaches to assessing the social effects of investment have been formed on the basis of a comparative analysis of the most popular methods for determining the social effect. The author gives recommendations on the implementation of this methodology at Ukrainian enterprises.

Keywords