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return on investment also known as SROI is an approach to assessing the
generation of social added value. Similar to the ROI – Return on Investment, a
key measurable figure is also calculated here. The SROI indicator reflects
generated environmental and social values in relation to the invested costs.  However, key figures of SROI are not
necessarily part of accounting and controlling. The SROI can be distinguished
for all forms of organization to measure and visible business impact on
stakeholders, and identify ways to improve performance and efficiency of the
investment.  (Folger, 2017)


in a time of massive change (i.e. the digitalization of industry, demographic
challenges, mega cities, importance of sustainability) will change the way of
doing business in the future. One main issue in particular has stood out to me
during the SCI project at the MGH: How and why to measure social impact and
outcomes of such an institution as the MGH. There are several reasons regarding
to the importance of the social impact measurement. The measurement can engage the
program management and improve the management capability. Furthermore, the
management of the MGH has more control about the work as well as increase the effectiveness
of communication internally such as to employees. Besides, the society and the
environment get more involved to values that the MGH or other institutions

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are different approaches of measuring the impact of social work at the MGH.
Once can be the “The impact-oriented model of the international Group of
Controlling”. In general, it can be complicated to determine or measure the
success of a social institution such as the MGH. By its nature, the effects and
added value relate to stakeholder with their own definition of success. Fortunately,
the MGH can be also confronted with problems such as that their effects and
successes are appearing on different levels. However, the Non-Profit-Organization-Controlling
is differentiating four levels of effect. The first effect level is the “Output”
which determines the quantity of output that ultimately design the basis for
qualitative effects. For example, the number of language courses per year in
MGH by taken the number of social workers. The second effect level can be
illustrated by the “Outcome”. It describes the social effects and benefits
(objective collective effectiveness) that the services create by the MGH. The
services of the MGH have an effect on the most diverse groups of addressees,
third parties, society, and generally in the common good. For example,  a decreasing in costs for the employers and
insurances, where the higher costs can be more and less avoided by e.g. the “Engpassdehnen”
course at the MGH. The third level of effect is called “Impact”, which includes
effect of the beneficiary or the stakeholders and resulting in a reaction of the
target groups performance and to the objective effects of the services. For example,
the MGH can increase the intuitive life quality of the seniors with serval
courses e.g. the “Sturzprophylaxe” training. The last level of effect is
defined as “Effect”. This level determines the provable effect for individual
stakeholders. For instance, the intended effects which are independent of the perception
and of the target groups are characterized at this level.


“impact-oriented controlling” operates in a matrix in which those impacts are
entered in the form of key figures that on the one hand correspond to the
central impact expectations of the stakeholders and on the other hand can also
be produced and guaranteed by the institution. For instance, the
impact-oriented social investment calculation is designed in five steps.

first steps consider all public inflows to the social institution which are analyzed
e.g. fees, subsidies, tax subsidies; they are correlated with the returns from
the company to the public sector such as taxes, social security contributions.
Furthermore, transfer analyzes also determine the payment flows between the
various “public hands” in order to make the implicit redistribution
more transparent between local authorities and social security. Individual perspective
is the second step, which determines the personal social benefits and their return.
The third step is used by for social institutions to avoid costs that may be
incurred by other service providers, and they allow third party opportunity
returns, some of which go back to the welfare state as taxes and social
security contributions.

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