Expected return weighs the anticipated social benefits of an investment against its costs, discounted to today’s value. This expected return metric can take various forms; examples include social return on investment (SROI), a benefit-cost ratio (BCR), and economic rate of return (ERR). One method for analyzing social impact is the social return on investment (SROI) model. SROI is a principles-based method for reporting on the value relative to resources spent.
The seven SROI principles are:
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Unlike other SROI software, the platform does not just rely on a survey. Impact Cloud's SROI calculator provides integrated - survey and data-collection from different sources, integrated analytics, and reporting.
SROI Impact Cloud can be evaluated in four steps
SROI uses monetization of social impacts to assess value. Monetizing social return requires that investors, funds, and enterprises alike formulate their stances on strategy, funding, and services based on expected stakeholder benefits and costs.
Remove bias by providing hard figures for comparison. At a more macro level, SROI methodology can help get at how meaningful the work of a particular investor, fund, or enterprise is by examining its economic and other impacts on society.
Word Of Caution
A number of assumptions that go into the calculation of value introduce uncertainty that makes SROI potentially problematic. Some organization feel that SROI is a useful tool to inform priorities and decisions internally but not for external communication about the impact