What Is Social Return on Investment (SROI)—and how will we measure it? 

Key-concepts

The Social Return on Investment (SROI) framework builds on established methods such as cost-benefit analysis (CBA) but expands its scope beyond financial considerations to account for the social value generated by an intervention. By measuring social, economic, and environmental outcomes within a defined logic model—often referred to as the theory of change—usually deriving from a multi-stakeholder perspective, SROI provides a comprehensive evaluation of an activity’s broader impact.

Unlike traditional economic evaluations, SROI assigns value to outcomes that are often challenging to quantify. It offers stakeholders valuable insights into whether investments are effectively maximizing social impact. Depending on the timing, SROI can be conducted retrospectively (evaluative SROI), measuring outcomes that have already occurred, or prospectively (forecast SROI), estimating potential value if an intervention achieves its intended goals. Much like CBA, SROI expresses results as a ratio of benefits to costs over a specific period. For instance, a ratio of 3:1 indicates that €3 of social value is generated for every €1 invested.

The implementation of SROI is based on seven fundamental principles and follows a six-stage process:

In the BUILD project, Social Return on Investment (SROI) is a key tool for measuring how integrated long-term care solutions deliver value to older adults, formal and informal caregivers, and health care systems. By analyzing existing approaches to evaluating integrated care systems, BUILD is identifying the outcomes that matter most, such as improving access to care, reducing inequalities, and enhancing the quality of life for those receiving and providing care. This work lays the foundation for understanding the broader social impact of person-centred integrated care (PC-IC).

SROI’s role in BUILD goes beyond analysis. Its principles and methods are being used to design a practical framework that considers the first four stages of SROI as a basic methodological structure, in which policymakers and stakeholders can rely on to develop care solutions that truly make a difference. By focusing on both measurable outcomes and social value, the framework will ensure that resources are directed to initiatives that generate the greatest benefit for society.

Ultimately, BUILD’s integration of SROI aims to provide a clear, evidence-based pathway for creating sustainable, equitable care systems across Europe—responding to the growing care needs of aging populations while improving the well-being of those at the heart of these systems.

Author: Susana Ramalho Marques, ISEG Partner

_________________________

1  Banke-Thomas AO, Madaj B, Charles A, van den Broek N. Social Return on Investment (SROI) methodology to account for value for money of public health interventions: a systematic review. BMC Public Health. 2015;15(582). https://doi.org/10.1186/s12889-015-1935-7.

Nicholls J, Lawlor E, Neitzert E, Goodspeed T. A guide to Social Return on Investment. SROI Network; 2012. Available from: https://socialvalueuk.org/resources/a-guide-to-social-return-on-investment-2012/