This case is about SOCIAL RESPONSIBILITY
PUBLICATION DATE: May 01, 2004
Guidelines for Social Return on Investment Case Solution
Presents 10 standard guidelines for calculating social return on investment (SROI)–quantitative summaries of companies’ social and environmental impacts, actual or projected. SROI is a technique for summarizing the value of firms’ social and environmental advantages in terms of a dollar value equivalent.
Using data and examples from 88 genuine business plans, this article discusses common errors in such appraisals and makes recommendations for standardizing them. The intention would be to make SROI metrics comprehensive, credible, and useful for entrepreneurs, managers, and analysts. Such a common framework would also enable investors to compare the societal impact of different firms within the exact same business.