Social impact refers to how the organization’s actions affect the surrounding community. Social Impact is commonly measured by considering Social Return on Investment (‘SROI’), using reasonable measures of the values of outcomes to calculate an economic value for the effect. Three basic models to evaluate social impact are:

  • Economic benefit created: where, either at a micro or macro level, there is an impact on earning capacity, on productivity, on tax revenues, or on trade or indeed wider social or environmental benefits.
  • Costs saved or not wasted: where the investment or intervention results in a saving in the cost of other interventions, consequential costs, or increases the effectiveness of another intervention
  • Alternative or cheaper sourcing: the saving achieved where the investment directly replaces another more expensive one.

What does it tell me?

SROI provides you with a measure of how effective your organisation is at generating measurable social benefits. Engaging with key stakeholders during this process will help you to develop your understanding of which outcomes are most valued by your beneficiaries and funders.

How will it help my organisation?

SROI can help you to:

  • Demonstrate the value of your business to potential and existing investors.
  • Forecast expected outcomes from both existing and new activities.
  • Develop measures to assess your performance.

We are members of Social Value UK.


José Martos Vallecillos
José Martos Vallecillos
Steven Van Wijk
Steven Van Wijk