The leap from ROI to SROI: Farther than expected?

John Gargani

Evaluation and Program Planning, 2017, vol. 64, issue C, 116-126

Abstract: Social return on investment (SROI) is a popular method for evaluating the impact that organizations have on society and the environment. It has its roots in finance, where return on investment (ROI) is used to evaluate investments. Over the past ten years, SROI has made the leap from a tool for building private wealth to one that advances the public good. Has it landed us in a better place? To answer the question, I describe the general approach to financial analysis, how it is applied to financial decisions, and how it has been adapted to evaluate impact. I then consider the strengths and weaknesses of SROI, and suggest how, by pushing beyond the constraints of financial analysis, it can give stakeholders voice and provide evidence of success from diverse perspectives. Along the way, I propose a conceptual model for value, a foundational concept in SROI that has been criticized by some as underdeveloped, and I include a technical appendix that identifies potential sources of statistical bias in SROI estimates. I conclude by acknowledging our growing need to incorporate efficiency as one of multiple success criteria and the role that SROI—properly implemented—can play.

Keywords: Social return on investment; SROI; Value; Impact measurement; Method; Social investment (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0149718917300071
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:epplan:v:64:y:2017:i:c:p:116-126

DOI: 10.1016/j.evalprogplan.2017.01.005

Access Statistics for this article

Evaluation and Program Planning is currently edited by Jonathan A. Morell

More articles in Evaluation and Program Planning from Elsevier
Bibliographic data for series maintained by Catherine Liu ().