Social Return on Investment (SROI) is an outcomes-based measurement tool that helps organisations to understand and quantify the social, environmental and economic value they are creating. 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 INR) is created for every 1 INR of investment.
SROI was developed initially for use in the third sector. It has now been used by a range of public and third sector organisations of varying sizes.
The organisation must have buy-in to the process at a senior level to ensure that the process is properly resource.
If intending to follow through to develop the social return on investment calculation, it is useful to have some experience of using MS Excel and working with numbers.
Staff time to complete an SROI analysis is variable, depending upon the quality of information the organisation already collects and the scope of the analysis.