Part of the furniture

FRC Group describes itself as a company that 'runs businesses that create profits and opportunities to change the lives of people in poverty and unemployment'.

Currently those businesses support low-income families and long-term unemployed people in Liverpool and Oldham and consist of a one-stop furniture and furnishings supply company that delivers across the UK to registered social landlords, local authorities and charities; Bulky Bob's, a collection, re-use and recycling service for unwanted furniture and appliances; and Revive, a shop which sells 'pre-loved' furniture to the public - in particular low-income families. As a result, disadvantaged members of the community can afford to purchase good quality furniture and thousands of tonnes of furniture are saved from landfill.

The other aspect of the group's social impact is its employment and training programme. FRC Group offers six and 12-month paid contracts to the long-term unemployed, giving them the opportunity to gain real work experience and qualifications for a career in the logistics industry. In 2008/09 71 per cent of those completing the programme went in to employment of further training.

Verity Timmins, impact manager at FRC Group says: 'Some staff have been out of work for a year; the longest unemployed was 18 years - you can't underestimate the everyday skills that a trainee gains.'

What's more, over the past four years it has carried out seven social return on investment (SROI) studies of different areas of social impact - the return from these different activities has ranged between £1.52 and £2.49 per £1 invested.

Measuring up

What makes FRC Group social enterprise pioneers is not just the impact its activities have but the importance it places on measuring that impact. The company is able to give customers, commissioners and the public real statistics and uses impact measurement as a management tool.

Timmins points out that social accounting tools were experimental when first used by FRC Group in 1988. The management wanted to prove they could run a business while making a positive impact on alleviating poverty.

'Impact measurement helps us balance our business aims and our other agendas,' says Timmins.

'New tools are being added to the social accounting framework so each year we have a better sense of how we can best use the information collected to keep us on track.'

Quality and quantity

FRC Group uses both qualitative measurement, based on anecdotal evidence, and quantitative measures drawn from the actual numbers.

Both types of information appear in its impact report. But FRC Group does not see impact measurement as something that is done once a year for an annual report. Managers work on monthly updates and Timmins says this helps them to be more responsive to market changes and to become a better social business.

'Two years ago we developed a five-year business plan and even though times have been financially tough recently our foundations are strong,' says Timmins.

'Impact measurement tools keep us close to the data so we know which areas need addressing.'

This is why instead of standing still and trying to ride out the recession FRC Group has plans to supply more furniture and acquire more contracts - which means it will be able to offer more training placements.

Covering all the bases

Timmins recommends that organisations don't get too caught up with producing a report to please academics but instead focus on explaining its impact to stakeholders and managers.

So, for example, FRC Group uses four theories of impact measurement: social accounting; social return on investment (SROI); the New Economics Foundation local multiplier effect; and AA100AS.

The report is based on data collected from stakeholders, including customer surveys, staff questionnaires and internal business accounting, and on facts such as how many people are in employment 12 months after finishing their training. All the information is collated and the commercial, social and environmental findings are discussed.

The report is audited by an independently sustainability auditor and by a panel of FRC Group's stakeholders to make sure theinformation is verified and fairly presented.

To sum up the benefits of impact reporting Timmins says: 'A systematic commitment to impact measurement is better for our business, for our social impact and economic growth, and ultimately, the more trainees we can have.'

frcgroup.co.uk