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Social Return on Investment (SROI): Demonstrating your organisation's value
You know the positive impact your organisation makes on society, but how can you quantify it? Whether you’re seeking new funding or simply want to ensure your day to day activities connect to your strategy, the Social Return On Investment (SROI) framework can help you understand, manage and quantify the value of your organisation.

SROI is an outcomes-based measurement tool that helps organisations to understand and quantify the social, environmental and economic value they are creating.

There is increasing recognition that we need better ways to account for the social, economic and environmental value that result from our activities. The language varies – ‘impact’, ‘returns’, ‘benefit’, ‘value’ – but the questions around what sort of difference and how much of a difference we are making are the same. Understanding and managing this broader value is becoming increasingly important for the public, charity and private sectors alike, with funders asking programmes to demonstrate in a measurable way the cost-effectiveness of the programmes they fund.

This is true whether it is civil society organisations working to create value, governments commissioning and investing in activities to create social value, investors seeking to ensure that their investments will make a difference, or private businesses recognising both risk and opportunity in the wider effects of operations.

Developed from traditional cost-benefit analysis and social accounting, SROI is a participative approach that is able to capture in monetised form the value of a wide range of outcomes, whether these already have a financial value or not. An SROI analysis produces a narrative of how an organisation creates and destroys value in the course of making change in the world, and a ratio that states how much social value (in £) is created for every £1 of investment.

Jan 13, 2021 10:30 AM in London

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