SOCIAL RETURN ON INVESTMENT (SROI)

When value for money is paramount, society should have an understanding of value for money that includes social and environmental outcomes alongside economic costs and benefits. The New Economics Foundation was integral to the development of the SROI methodology.

Valuing what matters

How do we measure the things that make life worthwhile? Giving monetary values to social and environmental outcomes allows politicians, organisations and businesses to make better decisions, and maximise the impact of their work.

Social Return on Investment captures monetary returns, but also social and environmental returns. It is these ‘profits’ that change the world for the better.

Monetisation and Social Return on Investment (SROI)

Monetisation – the placing of monetary values on outcomes – is a fundamental element of the Social Return on Investment (SROI) methodology. It is also an area where there are a wide diversity of approaches. In some ways this diversity of approaches is a good thing; the difference in scope and purpose of SROIs means that sometimes different approaches are called for. However, these different approaches to monetisation can lead to otherwise similar SROIs showing very different SROI ratios. For some people, this lack of consistency in approach is one of the main drawbacks of SROI. Read more here

Download the full guide on the seven principles of SROI here.

For examples of our work and case studies where we have used the SROI methodology, search the website using the general search facility at the top of the page. 

Resources

Social Return on Investment. Valuing what matters
This report shows how a tool piloted in the UK by the New Economics Foundation can be used to measure the financial value of social and environmental as well as economic returns.

Robert_Kennedy

“Our gross national product… counts air pollution and cigarette advertising and the loss of our natural wonder in chaotic sprawl… It measures neither our wit nor our courage, neither our wisdom nor our learning; neither our compassion nor our devotion to our country, it measures everything, in short, except that which makes life worthwhile.”

Robert Kennedy, University of Kansas, 18 March 1968
(abridged from the full speech) 

New Economics Foundation

NEF aims to create a new economy that works for people and within environmental limits. We are guided by three missions:

Build a fast and fair transition
To a green economy through a deep and equitable transformation to address the climate crisis.

Guarantee economic security for all
By rebuilding effective and sustainable public services to give everyone access to life’s essentials.

Shift power to people and communities
Through democratic ownership of the economy and devolving political power.

FIND OUT MORE HERE

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