Valuing the social? The nature and controversies of measuring social return on investment (SROI)

Abstract

The concept of 'social return on investment' (SROI) has come to play an important role in debates about how social enterprises and charities conceptualise, measure and communicate their achievements. In this paper we analyse the nature and role of SROI as used in the United Kingdom for impact assessment of such organisations. The paper offers insight into methodological and procedural aspects of the framework. Key issues explored include the quantification of benefits, the valuing of volunteering and the ways in which judgement and discretion are exercised. There is a particular tension between the participatory element in the design of each SROI exercise and its use for the purpose of competition. The paper concludes by proposing a research agenda that includes an examination of the context in which discretion and judgement are applied and the use and usefulness of SROI in the new policy and funding environment in which third sector organisations currently find themselves

Performance of impact investing: A value creation approach

“…Some people fear that the use of market-based tools to measure social value is a sign of the "marketization of non-profit organizations" (Arvidson et al, 2013). Proposing an approach of value creation in impact investing implies to take into account both the financial and non-financial dimensions of the activity of the investee.…”

Assessing the Value of Housing Schemes through Sustainable Return on Investment: A Path towards Sustainability-Led Evaluations?

“…Such details include the establishment of stakeholders (those who influence the project), inputs (costs of the project), outputs (number of units of delivery), and outcomes (predicted/stakeholder change) [48]. The approach attributes financial value to inputs and outcomes [53]. Financial proxies are used to estimate the value of non-traded and non-market goods.…”

“…This objective is embedded into a holistic vision of sustainability encompassing economic, environmental, and social issues (the first criterion in Figure 2), and complemented with a systematic appreciation of all the values considered in the process (following criteria in Figure 2). attributes financial value to inputs and outcomes [53]. Financial proxies are used to estimate the value of non-traded and non-market goods.…”

“…Stage five involves the calculation of the SuROI by dividing the net present value by the value of inputs. The ratio does not express financial value, but is instead a comprehensive way of expressing the "currency" of social value [53].…”

Reconceptualizing Profit-Orientation in Management: A Karmic View on ‘Return on Investment’ Calculations

“…Concepts, such as BSocial Return on Investment^have already pointed in this direction (Arvidson et al 2013;Costa 2013), but this article will structure these considerations in a more systematic way. One does not have to believe in reincarnation to appreciate the conceptual value that is inherent to a karmic perspective on management; it allows a step back to be taken from a seemingly broad agreement on the rationale of management within capitalist systems.…”