Question 1

What is the difference between Social Return on Investment and traditional ROI?

Accepted Answer

Traditional ROI measures only financial returns on investment, whilst Social Return on Investment captures broader social, environmental, and economic value by assigning monetary proxies to outcomes without market prices, such as improved wellbeing or environmental sustainability.

Question 2

How long does it take to conduct a Social Return on Investment analysis?

Accepted Answer

The timeline varies significantly based on scope, data availability, and resources. Forecast Social Return on Investment for planning purposes might require 2-4 weeks, whilst comprehensive evaluative Social Return on Investment with stakeholder engagement, data collection, and verification typically takes 3-6 months for first-time implementations.

Question 3

Can small businesses afford to implement Social Return on Investment measurement?

Accepted Answer

Yes, small businesses can implement scaled versions focusing on specific programmes rather than organisation-wide analysis, using free templates and tools, and starting with forecast Social Return on Investment that requires less data collection than evaluative approaches, making the methodology accessible regardless of budget size.

Question 4

What makes a good Social Return on Investment ratio?

Accepted Answer

Context matters more than the specific number. A 2:1 ratio delivering sustained community health improvements may represent greater achievement than 10:1 on easily measured outcomes. Focus on credibility, transparency, and usefulness for decision-making rather than maximising the ratio.

Question 5

How do you calculate deadweight in Social Return on Investment?

Accepted Answer

Deadweight is calculated by researching what proportion of outcomes would have occurred without your intervention, using comparison groups, benchmarks, stakeholder surveys, or secondary research, then deducting this percentage from total outcome values to ensure you only claim credit for additional impact your organisation created.

financial proxies

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