The Tentative Promise of Social Return on Investment

Social return on investment (SROI), an evaluation method that compares monetized social value generated to costs invested, is in ascendance. Conceptually akin to cost–benefit analysis, it shares some of its challenges; however, these are heightened due to the expressed promise of using SROI to compare programs and inform philanthropic and public investment decisions. In this paper, I describe the landscape of SROI studies to date, including a review of a representative sample of SROI evaluations, which have been vetted by Social Value International. I also draw on the experience of an organization that has used SROI in earnest as a decision-making tool to provide an assessment of both the methods that underpin it and the ways in which it is applied. I conclude by offering some recommendations to consider to get the most value from this evaluation method while avoiding some potential pitfalls.