Social Return on Investment

In terms of measuring social benefits, social return on investment (SROI) methods and tools aim to capture these benefits.

Once again, the New Economics Foundation (nef) have developed an innovative new approach to SROI, building on pioneering work by Jed Emerson and REDF (the Roberts Enterprise Development Fund) in the USA.

The nef approach to SROI is stakeholder based.
There are five areas where use of SROI can bring about change:

  •  Public procurement - improve the impact - nef's work on local multipliers has demonstrated the role that procurement spending, by spending locally, can play in stimulating local economies
  • Public expenditure - improve the impact - Expenditure by government in pursuit of public policy interventions may create further gains or losses to the public purse
  • Social economy - performance improvement - Within most social economy organisations from grant-dependent charities to fully self-sufficient social enterprises, there is an increasing demand from management for ways of proving social and environmental impact
  • Grant giving and financial investment – enable new forms of investment
  • Corporate social responsibility – greater accountability