SocialReturnonInvestmentModelle

Social Return on Investment (SROI) is a framework for measuring and accounting for the value created by an organization, program, or project in terms of social, environmental, and economic outcomes. It monetizes outcomes to allow comparison with resources invested, producing a ratio that reflects social impact relative to cost. SROI was developed in the United Kingdom in the late 1990s by the New Economics Foundation and partner organizations, and was later formalized and promoted by the SROI Network (now Social Value UK) as a standard approach in many sectors.

The methodology emphasizes stakeholder involvement and impact mapping. Key steps include identifying stakeholders, mapping intended and unintended outcomes, and assigning monetary values to those outcomes. Adjustments are then made for deadweight (what would have happened anyway), attribution (how much others contributed), displacement (whether benefits come at the expense of others), and drop-off (how outcomes fade over time). The analysis typically includes discounting, sensitivity testing, and transparent reporting. The final result is the SROI ratio, representing the present value of net social value created per unit of investment, or a calculation of net social value.

SROI aims to help organizations communicate social value to funders, policymakers, and beneficiaries, and to inform strategy and resource allocation. It offers a means of comparing programs with different inputs but similar social aims. Limitations include data requirements, subjectivity in valuing outcomes, and the potential for double counting. Critics also caution against over-reliance on monetary valuations for non-market impacts. SROI remains widely used by charities, social enterprises, and government pilots seeking to articulate broader impact.