The ambitions and challenges of SROI (social return on investment)

Arvidon, Malin and Lyon, Fergus and McKay, Stephen and Moro, Domenico (2010) The ambitions and challenges of SROI (social return on investment). Working Paper. University of Birmingham, Birmingham, UK.

Preview

PDF
WP49_Ambitions_and_challenges_of_SROI_%2D_Arvidson,_Lyon,_McKay,_Moro_Nov_2010.pdf
444Kb

URL of Published Version: http://www.tsrc.ac.uk/LinkClick.aspx?fileticket=QwHhaC%2br88Y%3d&tabid=500

Abstract

With the growing interest in measuring the social impact of third sector activities, there have been a range of approaches developed. One of these, social return on investment (SROI) has received particular attention and is being promoted by third sector organisations, as well as public and private bodies. This paper examines this approach in detail and identifies a series of issues that require further investigation. These include technical and methodological issues related to this adjusted cost-benefit analysis such as quantifying the value of social benefits, and attribution; the judgement involved in setting indicators; whether projects deemed successful based on an SROI analysis can provide the basis for replicability and scaling up; and the ways in which SROI is being used by stakeholders. Through examining these challenges in detail, the approaches to measuring social impact can be strengthened, standardised and made more rigorous. While the issues raised here are essential to developing SROI further, they are also valid for more general discussions regarding the proving and improving of the value added by the UK third sector.

Type of Work:

Monograph (Working Paper)

School/Faculty:

Colleges (2008 onwards) > College of Social Sciences

Number of Pages:

Department:

Third Sector Research Centre (TSRC)

References:

Beckerman, W. and Pasek, J. (2001) Justice, posterity and the environment. Oxford: Oxford University Press.

Broome, J. (1994) ‘Discounting the future’, Philosophy and Public Affairs 23: 128–56.

Brudney, J. (1993) 'Volunteer involvement in the delivery of public services: advantages and disadvantages', Public Productivity & Management Review 16(3): 283–97.

Burger, R. and Owens, T. (2010) Promoting transparency in the NGO sector: examining the availability and reliability of self-reported data. World Development 38 (9): 1263-1277

Copestake, J. (2007) 'Mainstreaming microfinance: social performance management or mission drift? World Development 35(10): 1721–38.

Edwards, R., Smith, G. and Büchs, M. (2010) 'Mainstreaming the environment? The third sector and environmental performance management', TSRC Working Paper 36.

Fujiwara, D. (2010) The Department for Work and Pensions Social Cost-Benefit Analysis framework London: DWP Working Paper 86.

Gordon, M. (2009) 'Accounting for making a difference', Social Enterprise Magazine, November.
H.M. Treasury (2010) Green Book Appraisal and Evaluation in Central Government
http://www.hm-treasury.gov.uk/d/green_book_complete.pdf, accessed 6 October 2010.

Lawlor, E. (2009) Social return on investments: an approach to avoiding false economies, UKES Annual Conference.

Layard, R. and Glaister, S. (1994) Cost–benefit analysis, Cambridge: Cambridge University Press.

Leat, D. (2006) 'Grantmaking foundations and performance measurement: Playing pool?', Public Policy and Administration 21: 25–37.

Leighton, D. and Wood, C. (2010) Measuring social value: the gap between policy and practice, London: Demos.

Lyon, F., Arvidson, M., Etherington, D. and Vickers, I. (2010) 'Social impact measurement (SIM) experiences and future directions for third sector organisations in the East of England', Norwich: East of England Development Agency, www.the-guild.co.uk.

Netten, A., Beadle-Brown, J., Trukeschitz, B., Towers, A., Welch, E., Forder, J., Smith, J. and Alden, E. (2010) 'Measuring the outcomes of care homes: final report', discussion paper 2696/2, PSSRU, University of Kent, Canterbury.

Nicholls, J., Lawlor, E., Neitzert, E. and Goodspeed, T. (2009) A guide to social return on investment. London: Office of the Third Sector, The Cabinet Office.

New Philanthropy Capital (NPC) (2010) Social return on investment. London: New Philanthropy Capital.

Prest, A. and Turvey, R. (1965) 'Cost–benefit analysis: a survey', The Economic Journal, 683–735.

Ryan, P. and Lyne, I. (2008) 'Social enterprise and the measurement of social value: methodological issues with the calculation and application of the social return on investment', Education, Knowledge and Economy 2(3): 223–37.

SEEE (2009) 'Measuring making a difference: an introduction to social impact measurement', Social Enterprise East of England.

Social Edge (2010) '"Smells like Wall Street": Executives weigh in on SROI', www.socialedge.org/blogs/svt-on-impact/executives-weigh-in-on-sroi#1255492875 (accessed 5/7/2010).

Weiss, C. (1997) 'How can theory-based evaluation make greater headway?', Evaluation Review 21 (4): 501.

Westall, A. (2009) 'Value and the third sector', TSRC Working Paper 25.

Wright, S. et al. (2009) 'An evaluation of the transport to employment (T2E) scheme in Highland Scotland using social return on investment (SROI)', Journal of Transport Geography 17: 457-67.

Zappala, G. and Lyons, M. (2009) ' Recent approaches to measuring social impact on the Third sector: An overview', Background Paper No.5, Centre for Social Impact, University of New South Wales.

Date:

December 2010

Series/Collection Name:

TSRC Working Paper Series

Keywords:

Third sector, SROI (social return on investment), cost-benefit analysis, social impact, created value.

Subjects:

H Social Sciences > H Social Sciences (General)
H Social Sciences > HV Social pathology. Social and public welfare

Related URLs:

URL	URL Type
http://www.tsrc.ac.uk	Organisation

Funders:

Economic and Social Science Research Council, Office for Civil Society, Barrow Cadbury Trust

ID Code:

788

Export Reference As :	ASCII + BibTeX + Dublin Core + EndNote + HTML + METS + MODS + OpenURL Object + Reference Manager + Refer + RefWorks
Share this item :

Repository Staff Only: item control page