Appendix 1. Social Return on Investment

The SROI methodology was first developed in the 1990s in the USA by the Roberts Enterprise Development Fund, with a focus on measuring and evaluating organisations that provided employment opportunities to previously long-term unemployed. During the early to mid-2000s, the United Kingdom (UK) Office of the Third Sector provided funding to continue the development and application of the SROI methodology, resulting in the formation of the UK SROI Network.

The SROI principles developed through the UK SROI Network, that guide SROI analyses. These principles, described in Table A1.1, form the basis of an SROI.

Table A1.1 - SROI Principles

Principle	Definition
1. Involve stakeholders	Stakeholders should inform what gets measured and how this is measured and valued.
2. Understand what changes	Articulate how change is created and evaluate this through evidence gathered, recognising positive and negative changes as well as those that are intended and unintended.
3. Value the things that matter	Use financial proxies in order that the value of the outcomes can be recognised.
4. Only include what is material	Determine what information and evidence must be included in the accounts to give a true and fair picture, such that stakeholders can draw reasonable conclusions about impact.
5. Do not over claim	Organisations should only claim the value that they are responsible for creating.
6. Be transparent	Demonstrate the basis on which the analysis may be considered accurate and honest and show that it will be reported to and discussed with stakeholders.
7. Verify the results	Ensure appropriate independent verification of the analysis.