Social Return On Investment

Types of SROI

1.      Evaluate: this is conducted retrospectively and based on actual outcomes that have already taken place.

2.      Forecast: it measures the “How much social value will be crated if the activities meet their intended outcomes.

THE PRINCIPLE OF SROI

 SROI developed from the social accounting and cost-benefits analysis and based on seven principles.

Principle:

1.      Involve stakeholder

2.      Understanding what change

3.      Value the thing that matter

4.      Only include what is material

5.      Do not over claim

6.      Be Transparent

7.      Verify the result

Judgment will be required through the SROI analysis. So the principle of materiality will be guide the judgment.

What is Materiality?

It is accounting term information is materiality if it has potential to effect the readers or stakeholders decision. Like that piece of information is material if it missing it out of the SROI it would misrepresent the organization activity.

Carrying out SROI analysis we should follows six stages

1)  Establishing scope and identifying key stakeholders

Here you have to clear boundaries about what your SROI analysis cover. Who will involved in the process and how..

2) Mapping outcomes:

By engaging with your stakeholders you will develop an impact map. This shows the relationship between inputs, outcome, and outputs.

3) Evident out comes and giving them a value:

This stage involves finding data to show whether outcomes have happen or no and then evaluating.

4) Establishing impact:

Showing the collected evidence on outcomes and mentioned them those aspects of changes that would happen.

5) Calculating the SROI

 This stage involves adding up all the benefits, subtracting any negative and comparing the result to the investment.

6) Reporting, using and embedding:

This involves sharing finding with stakeholders and responding to them, embedding good outcomes process.

How can SROI help your organization for more sustainable:

·         raising your profile

·         improving your case for further founding

·         marketing your tenders more persuasive

What is social accounting?

It is an approach used to measure the social value creation. It start from an organization’s started social objectives.