Social return on investment

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Social return on investment (SROI) is a principles-based method for measuring extra-financial value (such as environmental or social value) not otherwise reflected or involved in conventional financial accounts. The method can be used by any entity to evaluate impact on stakeholders, identify ways to improve performance, and enhance the performance of investments.

The SROI method as it has been standardized by Social Value UK, formerly called the Social Return on Investment (SROI) Network,^[1] provides a consistent quantitative approach to understanding and managing the impacts of a project, business, organisation, fund or policy. It accounts for stakeholders' views of impact, and puts financial 'proxy' values on all those impacts identified by stakeholders which do not typically have market values. The aim is to include the values of people that are often excluded from markets in the same terms as used in markets, that is money, in order to give people a voice in resource allocation decisions.

A network was formed in 2008 to facilitate the continued evolution of the method. Globally, there are some 2000 members of this network, called Social Value International (formerly the SROI Network).