The Measurement of the Impact of Social Investment and the Social Return on Investment (SROI) is one of the strategic services of ZEa Social Consulting, designed to quantify, value, and communicate the social, environmental, and economic value generated by the investments and social programs of companies, governments, and organizations.
This service allows demonstrating the real impact of actions beyond traditional financial indicators, facilitating decision-making, transparency, and attracting responsible financing.
What is the Social Return on Investment (SROI)?
It is an internationally recognized methodology that measures the extra-financial value created by a project or intervention, integrating social, environmental, and economic results into a single metric. The SROI translates the results obtained into monetary terms, allowing for the calculation of a ratio that compares the value generated against the investment made (for example, an SROI of 3:1 indicates that for every peso invested, three pesos of social value are generated).
Unlike traditional ROI, which only considers economic benefits, SROI provides a comprehensive view of impact, including factors such as reputation, community well-being, environmental improvements, and strengthening social fabric.
Benefits for the organization
How do we do it at ZEa?
Our Impact Measurement and SROI service follows international standards and adapts to the needs and context of each client. The process includes:
1. Definition of scope and mapping of stakeholders: We identify all relevant actors and establish the boundaries of the analysis.
2. Construction of the Theory of Change: We clarify how activities generate results and transformations in the community.
3. Data collection and analysis: We combine quantitative and qualitative methods to identify, measure, and value social, environmental, and economic outcomes.
4. Monetization of results: We assign monetary values to the outcomes, using financial proxies, market prices, avoided costs, and other recognized methods.
5. SROI calculation: We sum the benefits, subtract the negative impacts, and compare the result with the initial investment to obtain the SROI ratio.
6. Reporting, validation, and communication: We present the results clearly, transparently, and adapted to different audiences, facilitating their use for continuous improvement and decision-making.
Methodology and phases of the process
Types of SROI analysis
Evaluative: Analyzes the real impact of interventions that have already been implemented, based on observed results.
Prospective: Projects the social value expected to be generated in the future, useful for planning and designing new initiatives.
