| SROI analysis is a process of understanding, measuring and reporting on the social, environmental and economic value that is being created by an organisation. |
Depending on the exact business model, social enterprises, third sector organisations and ethical businesses deliver a far wider range of benefits than it is possible to capture using narrow conventional assessments of returns on investment. nef's (the new economics foundation) SROI framework is an approach to measurement, developed from cost-benefit analysis and social auditing, which captures social value by translating social objectives into financial, and non-financial, measures. |
Has been used to measure the social, economic and environmental benefits of the private, public and voluntary sectors. SROI is also well established in Europe and the U.S. and there is an active European network of SROI practitioners - www.sroi-europe.org |