Using the social return on investment (SROI) as a measure of the effectiveness of social innovation projects implemented under public policies

Abstract

Purpose This paper aims to contribute to the on-going debate about the best way to measure the economic effectiveness of public policies, as well to explore the possibility of using the social return on investment (SROI) method as one of the indicators. Design/methodology/approach This study combines the SROI method with the case study analysis and comparative study. The paper presents the process of economic evaluation with the use of the SROI methodology and its results, along with methodological and evaluation observations. Findings This study confirms some assumptions based both on the subject literature, as well as, on own experience related to the implementation of the evaluation, the author also points out dilemmas related to the use of SROI analysis and the possibility of using it to measure the effectiveness of social innovation projects. Research limitations/implications The study contains several practical suggestions on the advantages and disadvantages of the SROI method in the evaluation of particular public policy intervention. Practical implications The paper includes implications for the use of SROI analysis of social innovation projects implemented in the frames of public policies. Originality/value The authors’ ambition is to provide practical suggestions on the advantages and disadvantages of the SROI method in the evaluation of particular public policy intervention and to contribute to the discussion about the possible space for comparing the results of economic evaluation based on the SROI method. Furthermore, it is different than most approaches to SROI analysis as the authors combine this method with the case study analysis and comparative study.

Estimating the social value of nature-based solutions in European cities

“…Since urban NBS usually do not generate cash flows, we estimate the value of benefits that urban residents place on nature in cities which we define as a ‘total social value to urban residents’. This is in line with research on perceived benefits of urban residents marking the social and environmental domains as dominant 15 , and performance metrics such as social return on investment (SROI) 16 , 17 . Quantification of social benefits in such metrics can help provide a more diverse narrative on the case for NBS for a wide range of stakeholders and communicate the crucial capacity of NBS interventions to provide multiple benefits 18 and support equitable and sustainable urban development 8 , 19 .…”

Editorial

“…This paper completes the picture covered by Defourny and Nyssens (2021). Jakub Głowacki discusses the Social Return on Investment based on Moroń and Klimowicz's (2021) work. Previous studies like Lingane and Olsen (2004) or Millar and Hall (2013) provided guidelines that can be tested in new conditions beyond economic efficiency measurement.…”

Feasibility Study of Mernek Milik Kita Program (MERLITA) using Social Return on Investment (SROI) Method

“…This methodology implies a good practical example for other social innovation project. Despite of the successfullness of the analysis for defining the social value of the program, this analysis may still have a large subjectivity because there is no program comparison at the same social object (Moron and Klimowicz, 2021). Therefore, this study may give a viewpoint that the program, MERLITA, provides a significant improvement for the development of Mernek Village.…”