Social Value Added (SVA) as an Adaptation of Economic Value Added (EVA) to the Specifcity of Cultural Institutions

• Autorzy: Paweł Wnuczak
• Języki publikacji: EN

Abstrakty

EN

Purpose: The purpose of this article is to present the concept of social value added (SVA) as a tool for measuring the effectiveness of the activity of not-for-profit cultural institutions. Findings: The modifications presented in this article make it possible to adapt economic value added (EVA) to the needs and specificity of not-for-profit public cultural institutions. Applying a modified EVA parameter, that is SVA, in cultural institutions may facilitate the process of management and the measurement of effective utilization of resources of these entities.

Methodology: A direct application of the measure of economic value added (EVA) in the case of evaluation of non-profit activity of cultural institutions would be impossible because of the specificity of such organizations, which - as distinct from standard enterprises - are not oriented on generating financial gains. The article covers several successive modifications of EVA, which lead eventually to the measure of social value added (SVA). This parameter represents the difference between the social impact of an evaluated institution and the social cost of capital involved in the conducted activity. A positive SVA means that the activity carried out by the institution subject to evaluation is socially viable. The method of SVA calculation presented in the article has been supported by a numerical example.

Originality/value: Published sources seldom tend to cover the tools improving management process or making it possible to measure the effects achieved by public cultural institutions. The solution discussed in this paper is a contribution to the body of reference literature in the said scope. (original abstract)

Słowa kluczowe

EN

Economic Value Added (EVA); Social value added (SVA); Cultural institutions; Public institutions; Cost-benefit analysis (CBA)

PL

Ekonomiczna wartość dodana; Społeczna wartość dodana; Instytucje kultury; Instytucje publiczne; Analiza kosztów i korzyści (AKK)

• Czasopismo: Journal of Management and Business Administration. Central Europe
• Rocznik: 2018
• Tom: 26
• Numer: nr 1
• Strony: 100--120

Twórcy

autor

Paweł Wnuczak

• Kozminski University, Warsaw, Poland

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Identyfikatory

DOI

10.7206/jmba.ce.2450-7814.221