Published by Skills for Justice
Why Social Return on Investment (SROI) is key to smarter spending
Date 22.10.25
What is Social Return on Investment (SROI)?
Social Return on Investment (SROI) is a comprehensive framework for measuring and accounting for value – broadening beyond traditional financial metrics to understand value received against service delivery objectives. By incorporating social, environmental, and economic outcomes, SROI helps organisations understand and demonstrate the true impact of their work.
At its core, SROI aims to reduce inequality, enhance wellbeing, and address environmental challenges. It tells the story of how value is created by translating outcomes into monetary terms, allowing organisations to calculate a cost-benefit ratio. For example, a ratio of 3:1 means that every £1 invested generates £3 of social value.
SROI is about value, not just money
Just as a business plan includes more than financial forecasts, SROI is more than just a final figure. It’s a narrative of change, supported by both data and human stories – combining qualitative, quantitative, and financial evidence.
SROI analysis can vary in scope. It might assess the total social value created by an organisation or focus on the impact of a specific project, programme, or service.
Why use SROI?
Conducting an SROI evaluation is essential for organisations that want to:
- Demonstrate the impact of their work
- Maximise the value of their services
- Make informed decisions about investments
- Attract funding and stakeholder support
Real-world examples
Skills for Justice completed an SROI evaluation of an emergency services project designed to support vulnerable individuals. The analysis revealed a social value return of £7.67 for every £1 invested – powerful evidence for continued funding and future investment.
In another case, a new Military and Public Service course was found to generate £2.59 of social value for every £1 spent by successfully preparing students for a career in the armed forces. This insight helped a college justify the development of a new military-style academy and lay the groundwork for licensing the course to other education providers.
A legal imperative: The Public Services (Social Value) Act
Beyond the organisational benefits, assessing social value is also a legal requirement for many public service providers and commissioners. The Public Services (Social Value) Act, which came into force in 2013, mandates that public authorities consider the economic, social, and environmental impact of their procurement decisions.
Ready to explore the value you create?
If you’re interested in learning more about Social Return on Investment or conducting an SROI analysis, get in touch with the research team at Skills for Justice. We’re here to help you evidence your impact and unlock the full value of your work.
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