Social Return on Investment
Social Return on Investment (SROI) is a framework used to measure the social value or impact created by an organisation, project, or intervention.
The Social Return on Investment (SROI) method shows the value of the social, environmental and economic impact created by an organisation and can show that value in financial terms. This makes it possible to weigh the social benefit against the investment cost.
The SROI methodology uses a spreadsheet analysis called an Impact Map. Inputs, outputs and outcomes are entered into the map. The relationship between these components is sometimes known as the ‘theory of change’. It shows how the intervention makes a difference.
Other information – indicators, quantity, and value (proxies) is also entered into the map. Formulae calculate the final value in monetary terms. Excerpts from this Impact Map are referred to and used throughout this report.