Social Return on Investment (SROI)

Social Return on Investment (SROI) is a method for measuring the social, environmental, and economic value generated by an investment or project, beyond financial returns. SROI assigns a monetary value to social outcomes, helping organizations and investors assess how well resources are used to create positive social impacts. This framework is often applied by nonprofits, social enterprises, and socially responsible investors to evaluate the effectiveness of their programs.

Example

A social enterprise calculates its SROI to show that for every $1 invested in its vocational training program, $3 worth of social value is created in terms of job creation and community development.