Social return
The social rate of return (English Social Return on Investment abbreviated SROI) is a 2,002-developed approach in the evaluation of the social added value employed by (social) projects. In other words, the social return tries to find a measure of the quality of social activities, such as self-help organizations, while taking into account as many factors as possible, such as environmental damage in the case of a peace-making mission in a war zone. Like comparable approaches, the procedure has weaknesses, including the lack of a fundamental normative approach. According to Olivia Rauscher of the University of Vienna, "the SROI analysis can be used as an evaluation method (retrospectively) or as a forecasting method (prospective). Sensitivity analyzes should be carried out in order to identify key factors of the SROI analysis and to make it possible to assess the effects of assumptions made."
The development of the SROI approach in the Anglo-Saxon region was preceded by the consideration of how the effects that arise from the work of social organizations and projects in the interests of the common good can be measured and financially assessed. The SROI is a method that extends the classic financial valuation methods ( ROI ) by a socio-economic and environmental value and thus also makes it applicable to non-profit organizations and companies. The SROI does not just want to be a new calculation tool. The SROI is to be understood as a new, broader approach that is not only interesting for non-profit companies, but also for social entrepreneurs and private companies that are involved in the area of corporate social responsibility and break new ground to improve their services as well evaluate and communicate the positive and negative effects caused by them.
history
The methodology for calculating the social return has been developed since 2002 by the William and Flora Hewlett Foundation together with practitioners from the USA, Canada, Great Britain and the Netherlands in the form of the Blended Value Map . This model assumes that value consists of a combination ( blend ) of economic, ecological and social factors. This value created through investments can be positive or negative. Revised versions were published in 2006 and 2009. Since then, the methodology has developed further, but convincing application examples are still missing. The last international conference of the SROI network took place in February 2012 in Potsdam.
method
The approach represents a departure from purely input-oriented approaches. It demands that the mission of an organization or project to be assessed is translated into concrete, definable goals within the framework of the determination of a "theory of change" has to notify the stakeholders .
You study a social or ecological measure over a certain period of time (usually 5 to 10 years),
- first calculates the investments (inputs) required to promote this measure,
- measures benefits, e.g. B. through quality improvements, cost savings and reduced spending as a result of this social measure
- evaluates these in monetary units ("monetization"), even if the money does not flow directly to the investors (methods commonly used in cost-benefit analyzes can be used for monetization), or - if monetization is not possible - other indicators apply their measurement (e.g. quality of life points)
- discounts the savings z. B. with the help of the discounted cash flow method
- and calculates the returns to the public sector or to private investors for publicly or privately financed projects, if there are any.
How do you calculate a SROI?
SROI = net profits: net investment
The question always arises: What loss would the state have without the NPO. Can the costs for the state be reduced through social services?
Example (all content fictitious): The "NPO Arbeitsschutz" campaigns for the protection of construction workers with an annual net investment of 100,000 .-- with measure XY. Measure XY results in 2 fewer construction workers becoming disabled each year. On average, a disability case for a construction worker costs 250,000. The NPO occupational health and safety can demonstrably prevent costs of 500,000. The social investment is 100,000 (net investment), the economic benefit for the general public is 500,000 (net profits).
The calculation in this example would be: 500,000 .-- (net profits): 100,000 .-- (net investment) = SROI in the amount of 5.0
Transparency & comparison
One of the most important factors in SROI communication is transparency. Consequently, in the above example (how do you calculate an SROI?) The SROI could be doubled if "only" two more construction workers are rescued. (1'000'000: 100'000 = SROI 10). Clear communication about the selection and calculation of the SROI is elementary.
If you compare different NPOs and their SROI calculations, it is elementary in which areas they are active. (Remember: Activities of an NPO in countries with few resources automatically mean that the SROI will be higher than for the same project in countries with a lot of resources.) This must be declared within the transparency.
Individual evidence
- ↑ Daniel Fujiwara: The Seven Principle Problems of SROI , Simetrica, England, 2015. Archived copy ( memento of the original from April 23, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Contact. Retrieved November 6, 2016 .
- ↑ Archived copy ( memento of the original dated December 30, 2010 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. Accessed December 19, 2011
- ↑ http://www.thesroinetwork.org/sroi-analysis/the-sroi-guide, accessed December 19, 2011
- ^ Ginevra Ryman, More than Bucks and Acres: Assessing the Value of Conserved Lands. Duke University, [1] April 29, 2010. The proverbial Bucks and Acres refers to the earlier success stories of the US landscape protection agency , which advertised how many additional acres of land it secured for how many dollars (Bucks) until it was discovered that the actual goals of preserving the flora and fauna and biodiversity were in no way achieved.
See also
literature
- Emerson J. et al. (1999): Social Return on Investment: Exploring Aspects of Value Creation in the Nonprofit Sector , in: REDF Box Set Vol. 2, The Roberts Enterprise Development Fund, San Francisco
- Aeron-Thomas D. et al. (2004): Social Return on Investment, Valuing what matters, new economics foundation , London
- Loidl-Keil R., Laskowski W. (2003): SROI - A concept for the socio-economic evaluation of social enterprises , in: Contrasts, Press and Information Service for Social Policy, No. 7 2003, Linz
- World Bank (2003): A User's Guide to Poverty and Social Impact Analysis, Poverty Reduction Group and Social Development Department , World Bank, Washington [2]
- Martin Faust, Stefan Scholz (ed.): Sustainable investments - products, strategies and consulting concepts. Frankfurt a. M. 2008, ISBN 978-3-937519-93-7
- Schober, Christian, Then, Volker (ed.): Practical Guide Social Return on Investment: Measuring the Effect of Social Investments; Stuttgart, 2015