Today, due to multitude of investments made in the development sector, Corporate are increasingly posed with a very real and important challenge: how to measure the social impact created by their investments? Coupled with the regulatory regime brought by the Companies act 2013 making CSR a mandatory spend; Corporations need to communicate to the larger stakeholder about the impacts and values brought about their interventions.
Conventional forms of economic performance measurement are unable to capture the added social and environmental value generated by such organisations. At the other end of the scale, tools such as social audits measure only how well organisations are meeting their mission statements. They do not turn the experiences/views of users into a value understood within economic circles. Nor do they compare the perceived benefits with the costs of an organization i.e. the return.
In order to bring in this desired result, a tool called Social Return on Investment (SRoI) is used to measure these impacts. Social Return on Investment (SROI) is a framework for measuring and accounting for added value that is created as a result of a service, initiative or organization.
Other Services in the Market
There is not a similar measurement tool available in the market which has found acceptance in the market. However, the need for such specialized service has been limited in the market and few consultants are having the expertise on this to offer it to Corporate.
CRB’s Value Differentiator
CRB offers SROI to Corporate as part of the sustainability framework, so that SROI is one of the indicators of the sustainability goals of the organisation, instead of stand-alone service. Corporate will now have a metric not only to measure but also to plan the budgetary allocation to the social investments. This will help in the overall management and enable the Corporate to accomplish their goals on sustainability.