Social Return on Investment

Forth Sector is working with Government and others to promote and develop Social Return on Investment (SROI) as a universally accepted means of assessing generated social value. 

Summary of EKOS* SROI Report

Every day our actions and activities create and destroy value; they change the world around us. Although the value we create goes far beyond what can be captured in financial terms, this is, for the most part, the only type of value that is measured and accounted for.

Decisions made on this basis fail to take account of full impacts. Social Return on Investment (SROI) is a framework for measuring and accounting for this much broader concept of value. We have used SROI to understand the impacts of our intervention and the real, proven, value created.

The change has been explored from the perspective of the main stakeholders.  Social change that this analysis explored and estimated the value of, includes:

• as a result of working with Forth Sector clients are improving their physical (fitness) and mental health (confidence, self esteem, mood, outlook on the future) and are better able to cope with their issues and life in general;
• as a result of working with Forth Sector clients are better able to deal with other people (friends and family, social life, people skills);
• as a result of working with Forth Sector clients are happier with what they do with their life (meaningful use of time, social status, contribution to society);
• working with Forth Sector is a secure environment for clients to work in;
Forth Sector’s work has an impact on the workload of other services .
• Forth Sector’s work changes the relationship of their clients with other service providers (more confident clients that are better able to communicate their wishes) and has a positive effect on the relationship of clients with these other service providers;
• Occupational Therapists say their therapy is more effective because their clients work with Forth Sector; and
• The government can make considerable savings because people far removed from the labour market get into employment and do not claim benefits and contribute through income tax.

This analysis estimates that for every £1 invested in the Forth Sector’s Business Development  there is social value of £7.34 is created.

*EKOS is one of Scotland’s leading independent consultancy practices in the field of social and economic development, based in Glasgow and working throughout the UK. EKOS core expertise is in impact analysis with significant experience in economic impact analysis, social audit/accounting, and health impact analysis. EKOS is now at the forefront in the development of SROI and is an active member of the SROI Network and employs trained and accredited SROI practitioners.

Full report available here

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