Ethical Public-Private Partnerships: A Forward-Thinking Approach to Enhancing Public Assets

Since late 1990s, Italy’s public administration has grappled with economic constraints, prompting the exploration of Public Private Partnerships (PPPs) as a solution to address infrastructure needs. However, the assessment of PPPs often neglects ethical considerations, raising questions about the social relevance and impact of such projects. This paper seeks to address this gap by developing a method for evaluating the social impact of PPP projects. By integrating ethical analysis with traditional investment evaluations such as Discounted Cash Flow (DCF) and Social Return On Investment (SROI), this approach offers a comprehensive understanding of different projects. Through this holistic approach, decision-makers can not only assess the financial viability but also ensure that the ethical implications of PPP initiatives are thoroughly examined. The proposed model will undergo testing in a future case study application. By examining the economic and social impacts of a student housing construction in the Santa Marta area, Venice, this framework will provide decision-makers with a well-rounded perspective. This will enable decision-makers to make informed decisions that prioritise both financial sustainability and ethical responsibility in PPP project implementation. Moreover, the model could potentially be adapted for use in other settings beyond university housing construction, offering a versatile framework for several contexts.