Outcomes approaches
The process of measuring outcomes as part of a theory of change is common to other
outcomes models, such as that used by Charities Evaluation Services. The involvement
of stakeholders is also a key feature of SROI that is emphasised, to a greater or lesser
extent, in other outcomes models. The main difference between SROI and many other
outcomes approaches is the importance of giving financial value to their outcomes.
The common ground between the initial stages of SROI and other outcomes
approaches means that organisations that have already done a lot of work on outcomes
are likely to find undertaking an SROI analysis much easier than organisations looking
at outcomes for the first time.
Sustainability reporting
SROI shares basic principles, such as the importance of engaging with stakeholders,
with approaches like the Global Reporting Initiative and AccountAbility’s AA1000
standards.
1
SROI differs in that it develops simple theories of change in relation to
significant changes experienced by stakeholders and includes financial proxies for the
value of those impacts.
Other methods of economic appraisal
SROI is similar to other economic analyses that attempt to value and compare the costs
and benefits of different kinds of activities that are not reflected in the prices we pay.
This approach is particularly well developed in environmental economics.
Environmental impact assessment (EIA)
EIA is a methodology for assessing a project’s likely significant environmental effects.
It enables environmental factors to be considered alongside economic or social factors.
EIA has to be completed as part of planning consent for major projects, as defined by
European Community legislation. Like SROI, the assessment of what is considered
‘significant’ is critical.
8 The seven principles of SROI
1 Involve stakeholders:
Inform what gets measured and how this is measured and valued by involving
stakeholders.
Stakeholders are those people or organisations that experience change as a result of
the activity and they will be best placed to describe the change. This principle means
that stakeholders need to be identified and then involved in consultation throughout
the analysis, in order that the value, and the way that it is measured, is informed by
those affected by or who affect the activity.
Resour Resour
1 AccountAbility’ s standards, the AA1000 Series, are principles-based standards that provide the basis for improving the
ces
sustainability performance of organisations. They are applicable to organisations in any sector, including the public sector and
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civil society, of any size and in any region.
A guide to Social Return on Investment
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