Monetizing Social Life Cycle Assessment (SLCA): A Case Study in SMEs Tapioca Industry in Lampung, Indonesia

To verify the responsible and sustainable functioning of circular economy (CE), assessing the sustainability of CE methods is essential. The consistent absence of a social aspect within the CE has been a recurring topic in research. This paper aims to pinpoint social-benefit aspects that are quantifiable in monetary values and investigate how attributing monetary significance to these elements can enhance the evaluation of social sustainability, leading to more informed decision-making processes. The methodology involves both quantitative and qualitative research methods. A quantitative research study was initiated in February 2023. Two approaches were used for sample selection. First, a case study approach was applied to select a specific SME within the tapioca industry. Survey interviews with workers follow the second step. This study also incorporates qualitative methods like literature review and interviews with key informants (cassava and social experts, government officials, and business owners) in April 2023. This research utilized descriptive analysis as a diagnostic tool, offering valuable insights. Challenges in monetizing social factors are discussed, highlighting the need for standardized frameworks, transparency, and stakeholder engagement. The paper also provides a practical example of monetizing social aspects within a small and medium-sized enterprise (SME) tapioca industry to address issues such as gender wage gaps, worker safety, and community engagement. The findings suggest that the costs of monetizing social aspects may outweigh the benefits in certain cases, calling for a reassessment of practices to ensure a more equitable and sustainable approach to social responsibility. Integrating social factors into assessments improves decision-making processes and stakeholder engagement, ultimately leading to more socially responsible decisions.