Social Return on Investment (SROI)

Social Return on Investment (SROI)  
In the broadest sense, social return on investment (SROI) is an attempt to quantify the social value being generated by an organization as a result of an investment made in that organization. SROI is proposed as an evaluation strategy to determine what organizations and programs are delivering the “best” social returns. It is defined as a “return” because it is a result of resources (financial and human) invested. SROI's distinguishing feature compared with the more traditional return on investment (ROI) is that the units being measured encompass social and/or environmental impact. SROI also includes the measurement of social value creation using proxies to measure the broader ripple effects or outcomes. See www.redf.org for industry leadership in this area.

Source: Scan of the Community Investment Sector in Canada, Coro Strandberg, Brenda Plant, September 2004.

Social Return on Investment
The long-term, social benefits produced by businesses and measured by quantitative means. These include, for example, the positive environmental effects such as a taxi company that only uses hybrid cars. From a more social perspective, schemes to employ socially-disadvanaged people, for example, are quite wide-spread.

Source: http://www.clearlyso.com/glossary.jsf