2. April 2014
Key challenges in measuring & monetising social impact
Can we quantify Goodwill ?
Can we quantify the intangible benefits ?
How do we monetize the intangible benefits of social
programmes / CSR ?
Can CSR or its impact be made into a trade-able
commodity ?
How to look at the direct and indirect benefits as a
cohesive whole ?
….How do we measure CSR and create an
economic value for it ?
SROI : a tool that can help us measure & overcome this challenge
SROI is an Impact Assessment
tool that evidences & measures
qualitative and quantitative change -
direct & indirect
It is an outcome-based
measurement tool that helps
organizations understand and quantify
the social, environmental and
economic value they are creating by
investing in development programmes
SROI establishes a relationship
between value of investments, outputs,
outcomes; and helps to map outcomes
(tangible and intangible outputs) by
developing Financial Proxies and
Monetization
It is calculated by using the formula:
SRoI = (Σ NPV) / Σ investment)
Establishing scope and
identifying key
stakeholders
Mapping outcomes
Evidencing outcomes
Establishing Impact
Calculating the SRoI
Reporting, using and
embedding
Stage 1
Stage 2
Stage 3
3. April 2014
Benefits of the SROI concept
SROI has the potential to be a transparent tool to objectively assess/help quantify the CSR
performance of different Indian companies using an industry-sector specific approach
The SROI index, by way of projecting a ‘business case’ for social investment, may encourage
Corporates to step up their CSR Spending and Commitments, thus, facilitating an increase in
‘responsible’ welfare spending - a “penny” judiciously spent
DIRECT BENEFITS INDIRECT BENEFITS
SROI traditionally been used to capture:
Social and Economic Value generated by
Social Enterprises working with
underprivileged people
Impact of training services and
employment services, community
development projects
Impact of service organisations,
especially those involving qualitative
outcomes (e.g. helplines providing
confidential interactions)
However, the outcomes/impact reported go
beyond the mere capturing of social &
economic value. Interactions with
beneficiaries have also reported these
unforeseen benefits :
better targeting of beneficiaries,
strategy reviews,
identifying and measuring newer &
indirect outcomes,
skill gaps & hiring decisions,
increasing the effectiveness of
interventions, and
helping develop objective outlook etc
Evidences from the Field : from ‘theory’ into ‘practice’
Many local government institutions in the UK (city councils in Coventry, Kirklees,
Bridgend County, etc) have participated in SROI for reviewing strategy, assessing triple-
bottom-line impact
Donor agencies and INGOs (like Christian Aid, HIV/AIDS Alliance, Care International,
etc) have conducted SROI to assess impacts of their development programmes across
diverse sectors (climate change, health)
Social Enterprises like Create Foundation CIC, Hoxton Trust, YouthNet (all in UK), etc
have commissioned SROI to capture the value generated by their services
Mining Conglomerates such as Exxaro (SA) and other extractive industries such as
BILT (India) have commissioned SROI studies to assess the impact of their CR/CSR
initiatives, and further a ‘business case’ for investment
FMCG Companies (and their affiliates) are also engaging in SROI to assess impact of
sectoral initiatives (such as HUVF in India)
4. Let’s measure the return...
Sudhir Singh Dungarpur
Partner & Head – Responsible Business Advisory
PwC India
sudhir.singh@in.pwc.com
+91 98 111 01234
Biplav Chatterjee
Senior Manager (RBA), PwC India
+91 9958499802
