A Guide to Social Return on Investment (SROI) is a practical methodology for measuring and valuing the broader social, environmental, and economic outcomes that organizations create beyond traditional financial metrics. Developed and maintained by Social Value International (formerly the SROI Network), the guide provides step-by-step frameworks for organizations seeking to evidence change, understand value creation holistically, and communicate impact to stakeholders. SROI represents a systematic approach to incorporating social, environmental, economic and other values into decision-making processes, creating a more complete perspective on whether interventions, social enterprises, or development projects are truly beneficial and profitable in their broadest sense.
The SROI methodology follows six interconnected stages that function as feedback loops: establishing scope and identifying stakeholders, mapping outcomes, evidencing outcomes and assigning financial values, calculating the SROI ratio, analyzing and interpreting findings, and embedding learning and monitoring. Unlike purely financial analysis, SROI acknowledges that effective evaluation requires understanding which outcomes matter to different stakeholders, how to measure progress toward those outcomes, and how to assign appropriate economic values to social and environmental changes. The framework formula is: SROI = (Social Impact Value - Initial Investment Amount) / (Initial Investment Amount) x 100%.
The guide has become essential infrastructure for social enterprises, nonprofits, government agencies, and development organizations seeking to demonstrate impact, improve program effectiveness, and make evidence-based decisions about resource allocation in pursuit of social change.