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Category: Business and Industry
Date Submitted: 05/16/2016 04:53 AM
Social Return
on Investment
– an introduction
SROI – an introduction
in association with
1 Introduction
SROI – an introduction
Social Return on Investment (SROI) is an innovative way to measure and account for
the value you create with your work. The methodology is relatively new to the UK,
but it is attracting considerable interest from third sector organisations, government,
funders, investors and commissioners because of its ability to tell a compelling story
of change. As well as helping organisations account for their achievements and attract
funding, SROI can also help organisations maximise their social impact and improve
the lives of the people they work with.
This short paper gives an overview of SROI. A more detailed guide for people wishing
to implement an SROI has also been produced as part of a programme on measuring
social value being funded from 2008-11 by the Office of the Third Sector. The Scottish
Government is also funding a parallel programme focused on SROI. For more
information on the guide and these programmes see Sources of support, on page 10.
Social Return on Investment an introduction
3
SROI – an introduction
4
Social Return on Investment an introduction
2 About SROI
There are two types of SROI. Evaluative SROIs are conducted retrospectively and are
based on outcomes that have already taken place. Forecast SROIs predict how much
social value will be created if the activities meet their intended outcomes. Forecast
SROIs are useful at the planning stage of a project, or if you have not been collecting
the right kinds of outcomes data to enable you to undertake an evaluative SROI.
SROI was developed from social accounting and cost benefit analysis, and has a lot
in common with other outcomes approaches. However, SROI is distinct from other
approaches in that it places a monetary value on outcomes, so that they can be added
up and compared with the investment made. This results in a...