A Framework for Approaches to SROI Analysis
All enterprises create a range of types of impacts, only some of which are measured using conventional financial accounting. Social Return on Investment (SROI) Analysis is a method for understanding the (environmental, social and public economic) value being created by organizations in addition to the financial value that accrues to owners.
SROI analysis can be used by investors, foundation program officers and policy makers to inform their capital allocation strategies and decisions, and by managers to inform their projections, strategic planning and performance assessment.
This framework seeks to lay the groundwork for a standardized approach to SROI analysis.