Social benefits

The social costs and benefits of business activities need to be carefully considered

Social benefits are business activities that have a beneficial or favourable impact on people or places. For example, a business start up can have a multiplier effect. Suppliers will win new trade from them and the new workforce will become customers in the local shops.

A proposed project often generates both costs and benefits. For example, building a new factory on a greenfield site creates social benefits in the form of new jobs. However, the loss of open land is a social cost. Building is justified only if the benefits exceed the costs.