Social Return on Investment (SROI)
As organizations are quickly increasing their investments in the areas of Sustainability and CSR, it is becoming paramount to measure the impact of these investments.
Impact measurement is valuable to organizations for two key reasons: (1) It enables them to identify their best investments, and improve on mediocre ones; and (2) It shows commitment to transparency and accountability to a variety of stakeholders.
It has long been debated that what cannot be measured cannot be monitored, improved, nor of significant added value; this is where the concept of Social Return on Investment (“SROI”) stems from.
Return on Investment (“ROI”) is a common financial term with clearly defined parameters for calculation. However, these parameters do not take into account the non-financial value such as of social and environmental investments that comes in the form of impact created on the brand, reputation, social commitment, etc. As such, SROI is a valuable tool to capture these impacts and help measure the value of these investments.
At Schema we believe our clients should monitor their Sustainability and CSR investments, and measure the SROI to demonstrate the value created by these investments.
Our approach to measuring the SROI begins at the outset of each strategy, program or initiative by creating parameters with clear and measurable objectives. We ensure our clients’ investments get a high return with tools to demonstrate the resulting value to shareholders and stakeholders alike.