• Validity

    • IN GENERAL

      a) The quality of being logically or factually sound; soundness or cogency. b) The state of being legally or officially binding or acceptable.

    • IN EVALUATING

      The extent to which the data collection strategies and instruments measure what they purport to measure.

    Commentary

    In evaluation, the validity of a measurement is the extent to which it accurately measures the intended object. Validity can also refer to the extent to which findings are backed by evidence. In business, validity refers to whether an agreement, bid, offer or document is allowable or binding.

  • Valuation

    • IN GENERAL

      An estimation of the worth of something, especially one carried out by a professional valuer.

    • IN FINANCE

      The determination of the value of an asset.

    Practice & Source: (1) Generic: Oxford Living Dictionaries (2) Finance / impact investing: Financial Times Lexicon
    Commentary

    In business and economics, valuation typically involves placing a monetary value on something, though there are methods of identifying the relative non-monetary value of a set of alternatives (for example, by multi-criteria decision analysis). In practice we implicitly engage in valuation through choices we make every day.

  • Value

    • IN GENERIC

      The regard that something is held to deserve; the importance, worth, or usefulness of something.

    • IN EVALUATING

      A valid judgment of merit, worth and significance, the main remit of evaluation.

    Commentary

    In business, value is often shorthand for the financial or monetary value of an asset for the owner. In other settings it can refer either to financial value, anything that people may care about, or moral standards.

  • Value chain

    • IN BUSINESS

      Value chain refers to all the activities, from receipt of raw materials to post-sales support, that together create and increase the value of a product.

    • IN SUSTAINABLE DEVELOPMENT

      The value chain identifies the various value-adding activities of an organization or network.

    Practice & Source: (1) Business/CSR: : Financial Times Lexicon (2) Sustainable development: The Dictionary of Sustainable Management
    Commentary

    Value chain analysis is increasingly used in social enterprise and non-profit sectors to identify how they create value in what they do. For such organization the value created is social value, not private value for the owners.

  • Venture capital (Adjective)

    • IN FINANCE

      Startup or growth equity capital or loan capital provided by private investors (the venture capitalists) or specialized financial institutions (development finance houses or venture capital firms). Also called risk capital. Venture capital is a type of funding for a new or growing business. It usually comes from venture capital firms that specialize in building high risk financial portfolios. With venture capital, the venture capital firm gives funding to the startup company in exchange for equity in the startup. This is most commonly found in high growth technology industries like biotech and software. A person who deals in venture capital is a venture capitalist, and usually works for a venture capital firm.

    Practice & Source: (1) Finance/Impact investing: BusinessDictionary.com
  • Venture philanthropy

    • IN FINANCE

      A high-engagement and long-term approach to generating societal impact through three
      practices:

      • Tailored financing: Using a range of financing mechanisms (including grants, debt, equity
        hybrid financing) tailored to needs of organization supported.
      • Organizational Support: Added-value support services that VPOs offer to investees (SPOs)
        to strengthen the SPO’s organizational resilience and financial sustainability by developing
        skills or improving structures and processes.
      • Impact measurement and management: Measuring and managing the process of creating
        social impact in order to maximize and optimize it.
    Practice & Source: (1) Finance/Impact investing: EVPA Venture Philanthropy Glossary
    Commentary

    There is overlap between venture philanthropy and impact investing. The practices of the latter are more like mainstream investing than philanthropy. See “impact investing.”

  • Voice

    • IN EVALUATING

      Voice refers the values, opinions, beliefs, perspectives, and cultural backgrounds of stakeholders as well as the degree to which those values, opinions, beliefs, and perspectives are considered, included, listened to, and acted upon when important decisions are being made about an intervention, product, service, or investment. While the inclusion of voice may take a wide variety of forms, there are a few main types of voice:

      1. Formal: When voice is formalized or institutionalized, governance and organizational systems may be reconfigured to include stakeholder voices in leadership roles or major operational decisions.
      2. Informal: When voice is informal, leaders may take the opinions of stakeholders under advisement, but there is usually no formal obligation to act on their opinions or to include them in official leadership roles and decisions.
      3. Evaluative: Stakeholder voice may also be considered in the evaluation of an intervention, product, service, investment, or their respective leadership.
    Practice & Source: (1) Evaluation: The Glossary of Education Reform
    Commentary

    The most common variations of “voice” are “stakeholder voice,” “user voice,” and “constituent voice.”