Social Return on Investment

Social Return on Investment ( SROI; German " social return ") is a recent approach that deals with the evaluation of the created by ( social) projects social added value.

The development of the SROI approach in the Anglo-Saxon world was this requires the consideration of how the effects caused by the work especially social organizations and projects in the public interest, measured and can be measured financially. The SROI is a method that extends the classical financial valuation methods (ROI ) is a socio-economic and environmental value and thus makes applicable to non-profit organizations and companies. However, the SROI wants to be not only a new calculation tool. The SROI is to be understood as a new, broader approach that is not only interesting for non-profit companies, but also for social entrepreneurs and private companies that engage in corporate social responsibility and new ways to deny their services and to assess the damage they both positive and negative effects and to communicate.

Method

The approach represents a departure from purely input- based approaches dar. He claims that the mission of a being valued organization or being valued project of a " Theory of Change " is translated into concrete definable objectives within the framework of the provision about the one with yourself has to inform the stakeholders.

It examines a social or environmental measure during a specified period (usually 5 to 10 years )

• First calculates the investments (inputs) that are required to promote this measure,
• Measure benefits, such as through quality improvements, cost savings and declining expenses incurred as a result of this social action
• Rated this into monetary units ( " monetizing "), even if the money does not flow directly to the investors ( for monetization used in cost-benefit analysis methods can usually be used), or place - if monetization is not possible - other indicators their measurement (eg quality of life points)
• Discounted, for example, the savings using the discounted cash flow method
• And calculated at publicly or privately funded projects, the returns to public authorities or to private investors, if there should be such.

History

The methodology of the SROI was developed in the form of blended value map since 2002 by the William and Flora Hewlett Foundation, together with practitioners from the U.S., Canada, UK and the Netherlands. This model assumes that value of a combination (blend) of economic, environmental and social factors there. This value created by investments can be positive, but also negative. 2006 and 2009 published revised versions. Since then, the methodology has evolved, however convincing application examples are still missing. The last international conference of the SROI Network was held in Potsdam in February 2012.