Social Return on Investment (SROI) is a framework that helps organisations calculate the total value generated for every Ringgit (RM) invested in a particular social initiative. SROI captures social value by translating outcomes into financial value.
Why is SROI important?
SROI describes how change is being created by measuring social, environmental and economic outcomes, using monetary values to represent them. This analysis enables organisations to calculate a cost-benefit ratio
The results of an SROI calculation communicates the social value a project creates. It provides guidance for strategic discussions and helps companies assess and increase the social value a sustainability activity creates or the potential to create a social value.
There are six stages involved in SROI analysis: