LM3 Online enables you to calculate your organisation’s local economic impact on its community
Whatever your reason for measuring your local economic impact, LM3 Online is the fastest, most user-friendly, and most cost-efficient method available. Now completely redeveloped to show for the first time not only your average LM3 but also the difference that using local or non-local suppliers makes to the local economy. This makes LM3 the key tool in delivering both coherent Corporate Social Responsibility programmes and Sustainability Measurement.
The new model now also works anywhere in the world making it available for all forms of international grant aid impact, and global Corporate Social Responsibility uses.
LM3 measures the multiplier effect of income into a local economy over three 'rounds' of spending. The tool takes into account:
Round 1- Any organisation’s turnover or project cost including procurement and employee wages and other forms of cost.
Round 2- Where and with whom the company spends that money.
Round 3 - Where and how suppliers and employees re-spend their incomes.
The multiplier is then calculated for every unit of currency spent within a ‘local’ area selected by the user. For example, an LM3 score of 1.50 would indicate that every $1 earned by your company generates an additional $0.50 for your local area.
LM3 has been applied in the UK public sector at local government levels, and been used to demonstrate the local economic impact of over £13 billion of public, private, and not for profit spending.
Who is the tool for?
LM3 Online enables any organisation to measure its economic impact by analysing any expenditure on any geographic area using current data. LM3 Online automates the whole process. Simply upload the spending data of the budget you wish to measure, such as a contract or company turnover; specify the target local area, and the system does all the surveying and calculations.
The tool is used by:
The public sector - To provide objective evidence of community benefit, sustainability measurement, and social value
The private sector - To demonstrate added value of contract work and local benefit and to deliver auditable Corporate Social Responsibility (CSR).
The not for profit sector - To evidence the value generated by grants and contracts to the local community meet
International funders and foundations – To evaluate grant aid impact and select projects with the greatest local economic impact