“Social Return on Investment (SROI) is a principles-based method for measuring extra-financial value (i.e., environmental and social value not currently reflected in conventional financial accounts) relative to resources invested. It can be used by any entity to evaluate impact on stakeholders, identify ways to improve performance, and enhance the performance of investments.” – Wikipedia
CSR Pays for Itself: Here’s the Evidence, Forbes 20th September 2011
“The data showed that shareholders do in fact reward corporations for environmentally responsible activity. Companies experienced an average abnormal stock price increase of .84% in the two days following an announcement of eco-friendly behavior. Likewise, investors significantly punished companies for eco-harmful events with a corresponding abnormal return of -.65%.”
Why should we use SROI?
- “SROI will help you understand, manage and communicate the value that your work creates in a clear and consistent way with customers, beneficiaries and funders.
- It can help you manage risks and identify opportunities and raise finance.
- It will throw up potential improvements to services, information systems and the way you govern you businesses.
- All in order to increase the value or impact of your work.
- Whether you are a private enterprise, a social business, an investor or commissioning services, SROI will help you account for the wider impact of your work and allow you to make more informed decisions.
- Because SROI is built on principles, it is very flexible. Different organisations create value in many different ways. A consistent approach to understanding value means that you can communicate clearly where and how you create value in a credible way.” – SROI Network
