Analysis of Social Return on Investment


To know the return on investement that generates social activity is essential in a time when the environment requires a new and better form of demonstrating the social and financial impact of programs.

 

Description

Social Return on Investment (SROI) is a methodology for measuring the social impact of an investment that can calculate the value of results, that has economic value or not.


The SROI ratio is a comparison between the value generated by an initiative and the investment required to achieve this impact, namely, to answer the question, How many euros of social impact generated for every euro invested?
SROI is used:

  • To evaluate the impact of projects already implemented.
  • To predict the social value of activities that will be generated.

 

Characteristics

SROI is a useful strategic planning tool, to communicate the impact and raise funds or to help make investment decisions..

  • Facilitates strategic discussion and helps them understand and maximize the social value created by the activity.
  • Helps direct appropriate resources to manage unexpected results, both positive and negative.
  • Demonstrates the importance of working with other organizations and individuals who have something to contribute to the generation of social change.
  • Identifies common ground between what an organization wants to achieve and what they want their stakeholders to achieve: helps maximize social value.
  • Creates a dialogue with stakeholders, involving them throughout the entire process.

 

SROI is aimed at:

  • Social organizations and businesses
    • Organizations that creat social value by using SROI as a management tool to improve performance, reporting to funders and to highlight the added value.
    • It can be used to analyze the social value of commercial activities to the public, the public sector, or to other companies.

 

  •  Funders
    • Those who bet or invest in the creation of social value initially using SROI as a way to help decide where to invest, and later to evaluate the performance and to measure the progress over time.
       

Antares Consulting is an active member of: The SROI Network.

 



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