A social impact compensation model developed by SK-backed Center for Social Value Enhancement Studies (CSES) has completed its first overseas implementation in Japan, demonstrating that social outcomes generated by mission-driven organizations can be measured in monetary terms and linked directly to financial incentives.
CSES and the Japan Fundraising Association (JFRA) held an “Outcome Fund for IMM” results-sharing event at AP Tokyo Marunouchi on May 27, unveiling the results of a three-year pilot program jointly operated in Japan.
The event gathered around 80 participants, including representatives from Japanese foundations, corporate CSR teams, impact investors, and social enterprises. Discussions focused on the practical application of outcome-based compensation systems and the future scalability of impact-linked funding models.
The initiative marked the first international deployment of the Social Progress Credit (SPC) model developed by CSES. Under the SPC framework, the social value created by social enterprises is quantified in financial terms, and participating organizations receive incentives proportional to the impact they generate.
Since 2023, CSES and JFRA have collaborated with four Japanese social enterprises to operate an IMM-based program focused on Impact Measurement and Management.
Over the three-year period, participating organizations were estimated to have generated approximately ¥1.26 billion (around US$8 million) in social value. Based on those results, ¥117.41 million (approximately US$750,000) in performance-linked incentives was distributed.
The participating organizations worked across a range of social issues, including support for independent living for people with disabilities, school violence prevention, housing assistance for single mothers, and regional well-being initiatives.
At the event, organizations shared how IMM frameworks changed their operational strategies and decision-making processes, while also presenting case studies identified through social impact measurement. Participants also discussed how outcome-based funding structures could be expanded into broader public and private sector applications.
According to CSES, the collaboration has already begun influencing parts of Japan’s public policy ecosystem. The organization noted that some Official Development Assistance (ODA) projects under Japan’s Ministry of Foreign Affairs have started adopting outcome-based compensation mechanisms inspired by similar frameworks.
Na Suk-kwon, CEO of CSES, said the Japanese project demonstrated that the SPC model can function effectively beyond Korea despite differences in institutional and market environments.
“This case shows that the Social Progress Credit model developed in Korea can be applied in different countries and ecosystems,” Na said. “We will continue expanding international cooperation to help spread impact measurement systems and social outcome-based finance.”
SK Group Chairman Chey Tae-won has consistently emphasized that companies should pursue both economic and social value as part of sustainable management. Under that philosophy, SK has supported the development of social value measurement systems and incentive-based impact models, with the Japan project becoming one of the first examples of the framework being implemented overseas.
