A SocialBox.biz blog post update by Alex (5th May 2017)
Social Return On Investment (SROI), a new term borne from Return On Investment (ROI) but this time adding a social component, is structuring a new business view on how to measure monetary and communal success as it relates to the public reception of products and services provided. Many social ventures are data collectors and work hard to make sense of their success as an organization. Instead of just looking at the plain ROI, they are turning their attention to a metric that factors in their social impact.
According to the New Economics Foundation, SROI “captures social value by translating outcomes into financial values.”
Source: The homeless hub
Similar to ROI, SROI shows a bottom double line that looks at both the financial impact and the social impact of services rendered. In simpler terms, SROI helps you discover the cost of what would happen to the world if your organisation or social venture did not even exist.
Best of all, you can turn this information into talking points, sharing with the world what you do specifically to make it a better place.
Here at SocialBox.Biz, we believe heavily in the power of SROI for bettering communities and lives across the world.
Our community initiatives boost your firms SROI and CSR at the same time, participate today: