| What about the social return on investment ratio? |
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SROI is an account of value creation and the account requires a mix of information including qualitative, quantitative and financial. In the same way as quoting a financial return on investment without any other information, the SROI ratio, by itself, has little meaning. The range of judgement that is permissible within an SROI analysis means that comparisons of SROI ratios alone are not recommended. Comparison of forecast and actual ratios provide the starting point for an understanding the reasons for the difference which will also need to draw on other types of information. Whilst we do not believe that investors will make decisions based on a single indicator, or that commissioners would be able to use a ratio as part of their decisions, we recognise that this could become part of the information that informs and influences decisions. |