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Dancing Gold: An approximate measure of Social Impact (Part III)

One of the instruments that can be used to measure social impact is SROI (Social Return on Investment). This tool is being used by several organisations and it has several versions less sophisticated and more comprehensive depending on the needs of the organisation.

A simple version of SROI just measures the economic and social impact, but newer developments such as the SROI Toolkit can monetize the social, environmental and economic impact of an organisation.

Read the Wikipedia entry on SROI to learn more about this specific instrument.

We want to measure the SROI in the case of Dancing Gold. To do so, we will need the following data:

  • Inputs: These are the resources that the business has needed, in this case is 200 m.u. of salary for the sessions and 300 m.u. for the rent = 500 m.u.

  • Impact: The quantitative impact we have been able to measure was 1,200 m.u.

Therefore, Social Return on Investment for Dancing Gold during the first year is:

SROI = Impact / Inputs = 1,200 / 500 = 2.4

That means that for every monetary unit that is invested in Dancing Gold, there is an impact of 2.4 monetary units.

 impact of 2,4 monetary units

You can find a real example of a Social Return on Investment Report for the Octavia Foundation in the following link:

Octavia Foundation. (2011). Placing a value on work: a social return on investment report.

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Social Business: a Sustainable Way to Face the Most Pressing Needs of Our Time

Pompeu Fabra University Barcelona

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