June Social Enterprise Breakfast

Presented by:

The Collaborative for Innovative Social Enterprise Development (CISED)

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What is SROI?An attempt to quantify the social value being generated by an organization as a result of an investment made in that organization

An evaluation strategy to determine what organizations and programs are delivering the ‘best’ social returns

Defined as a ‘return’ because it is a result of resources (financial and human) invested

Units being measured encompass social and/or environmental impact

Adapted from:

SROI in the Context of Social Enterprise

Robert’s Enterprise Development Fund (REDF) – leader in developing and disseminating learnings regarding: social, economic and socio-economic value of social enterprise

SROI evaluation approach lends itself well to social enterprise model in that it encompasses both financial and social outcome areas.

Social Capital Partners bases social outcomes on the Sustainable Livelihoods Asset Areas.

A key aspect is accounting for ‘social costs’ and ‘business costs’

Adapted from:

Challenges with SROI Approach

Not just an accounting exercise – but integrated into decisions makingSROI is new and evolving – more testing needed!Which social outcomes of target employees should be tracked? How does it apply to different populations?How can this tracking be useful for the target employees as well?

Adapted from:

Net Benefit to Society After Employment

Total Investment

Long Term Multiplier

x

Net Cost to Society Before Employment + Net Benefit to Society

After Employment

Total Investment

Long Term Multiplier

x

Net Cost to Society Before Employment +

SCP SROI Methodology: Summary Calculation  

 

•SROI in SCP’s measurement framework attempts to measure the monetary value associated with providing a job to someone previously unemployed and in receipt of government income assistance and/or services.

•It can be defined by the following equation:

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Local economy

multiplier effect as well?

Adapted from:

Where• Net Cost to Society Before Employment = The monetary value of government and social assistance associated 

with  target employees prior to employment in the social enterprise (net of any taxes being paid)

• Net Benefit to Society After Employment = The monetary value of the taxes paid by the target employee after being employed by the social enterprise (net of any ongoing social assistance)

• Total Investment = The total amount of money invested in the business in order to create the benefits to society. This includes any grants and additional social support infrastructure costs.  It also accounts for any operating losses incurred by the business.

• Long Term Multiplier = A multiplying factor that attempts to estimate the value that can be attributed to the social enterprise because its employees are more likely to maintain employment over the long term than would otherwise have been the case.  In other words, this annuity rate accounts for the fact that the net benefit to society associated with a particular social enterprise employee will continue to accrue throughout the working life of that employee.

 

 

 

 

Net Benefit to Society After Employment

Total Investment

Long Term Multiplier

x

Net Cost to Society Before Employment + Net Benefit to Society

After Employment

Total Investment

Long Term Multiplier

x

Net Cost to Society Before Employment +

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Adapted from:

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Doubled output of employment team through data collection

Partnership between Causeway and 3ci at Carleton University

Developed a survey looking at outcomes for employee-based social enterprises, as well as the organization’s social and economic impact.

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Section of Causeway Social Impact Measurement Survey given to Client-Employees

Key Findings: Financial:

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Key Findings Summary of Financial Impact:

▪ 75% of employees report an improved financial situation as a result of their job.

▪ Overall average increase in earnings for employees: $239/month.

▪ 42% of employees report an increase in savings. ▪ 33% of employees report reduced debt. ▪ 58% of employees feel their job has provided a regular source of income.

▪ 54% of employees report an increase in disposable income.

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Key Findings Social Impacts:

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Key Findings Summary of Social Impact

▪ 63% report an increase in social activity.▪ 54% report an increase in extra-curricular activity.

▪ 67% of employees report having more friends as a result of employment.

▪ 75% report development of employment skills.

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Key Findings Self-Esteem

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Key Findings Summary of Self-Esteem findings

▪ 60% increase in levels of self-esteem as a result of employment.

▪ 41% increase in confidence of own personal qualities.

▪ 29% increase in self-confidence relative to others.

▪ 23% improvement in attitude towards oneself.

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Organizational Data Analysis &

Ratios• How much do we spend per employee on social supports?

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050

100150200250300

Hours

Activities

Case Management

Employment Planning

Training

Volunteer (Client)

Kracker’s Katering Social Costs

Financial equivalents of social returns i.e. how much money is saved by the govt. on average per employee in reduced hospital visits?

What is the ‘return’ for each dollar of grant money invested into the business? What is the multiplier effect of increased spending in the local economy?

External Prospectus Internal Proposed changes to how we do business Hiring practice? Social supports we provide?

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How do you measure your impact in your social enterprise?

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Would this be useful for your enterprise?

What would make it more useful?

What would you hope it would tell you?

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ENP collaborative research project: http://www.demonstratingvalue.org

REDF – pioneer in SROI and social costs http://www.redf.org/

Social Capital Partners – SROI reports http://www.socialcapitalpartners.ca

The SROI Network – UK based http://www.thesroinetwork.org

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