The SROI Network

SROI is an approach to understanding and managing the impacts of a project, organisation or policy. It is based on stakeholders and puts financial value on the important impacts identified by stakeholders that do not have market values.

SROI seeks to include the values of people that are often excluded from markets in the same terms as used in markets, that is money, in order to give people a voice in resource allocation decisions. SROI is a framework to structure thinking and understanding. It’s a story not a number. The story should show how you understand the value created, manage it and can prove it.

It is based on seven principles.

THE Principles of SROI

1. Involve stakeholders
   Understand the way in which the organisation creates change through a dialogue with stakeholders
2. Understand what changes
   Acknowledge and articulate all the values,  objectives and stakeholders of the organisation before agreeing which aspects of the organisation are to be included in the scope; and determine what must be included in the account in order that stakeholders can make reasonable decisions
3. Value the things that matter
   Use financial proxies for indicators in order to include the values of those excluded from markets in same terms as used in markets
4. Only include what is material
   Articulate clearly how activities create change and evaluate this through the evidence gathered
5. Do not over-claim
   Make comparisons of performance and impact using appropriate benchmarks, targets and external standards.
6. Be transparent
   Demonstrate the basis on which the findings may be considered accurate and honest; and showing that they will be reported to and discussed with stakeholders
7. Verify the result
   Ensure appropriate independent verification of the account

These principles are core to SROI and how it should be used.  However, in encouraging consistency of models, the SROI Network is in discussion with practitioners who use related tools to see if principles can be aligned and agreement established on measuring social impact.  Therefore, these principles and how they are expressed may be revised.

Click here if you would like to download a copy of the Guide to SROI.

If you are producing a report of your SROI, we recommend that you have the report assured. Click here for more information on assurance.