What are HACT and SROI?
HACT is a social enterprise-based ideas and innovation agency for the UK housing sector. They are known for launching the Social Value Bank, which is a comprehensive set of social value metrics designed to help organizations, particularly housing providers, measure and understand their social impact.
SROI (Social Return on Investment) is a principles-based method that provides a consistent approach to understanding and managing an organization's impact on society.
How can SROI help organizations understand and manage their impact on society?
SROI (Social Return on Investment) is a principles-based method that provides a consistent approach to understanding and managing an organization's impact on society. It is built on well-established principles and draws on welfare economics, sustainability, and financial accounting. By following the seven principles of SROI, organizations can effectively measure and communicate their social, environmental, and economic value. The methodology focuses on answering key questions such as who changes, how do they change, how do you know, how much is you, and how important are the changes. This framework allows organisations to account for the full spectrum of their impact and make informed decisions based on the relative value of outcomes to all stakeholders involved.
The key principles of SROI (Social Return on Investment) methodology are as follows:
Involve stakeholders
Understand what changes
Value the things that matter
Only include what is material
Do not over-claim
Be transparent
Verify the result
These principles provide a consistent approach to understanding and managing an organization's impact by focusing on stakeholder engagement, understanding outcomes, valuing impacts, ensuring materiality, avoiding overestimation, promoting transparency, and verifying the results. By adhering to these principles, organizations can effectively measure and communicate their social, environmental, and economic value
How do HACT’s Social Value Bank and accompanying tools complement the SROI approach?
HACT's Social Value Bank and accompanying tools complement the SROI (Social Return on Investment) approach by providing a rich resource of monetary values for non-market goods and services. The Social Value Bank offers a comprehensive set of social value metrics derived from vast national datasets, which can be used to calculate social returns and assess social impact in a resource-appropriate and proportionate way. The values in the Social Value Bank align with the principle of valuing the things that matter in SROI methodology.
Additionally, HACT's tools, such as the Value Calculator and Value Insight, enable organizations to apply the Social Value Bank valuations to their work easily. These user-friendly tools help organizations measure social value, make strategic decisions based on the valuation of outcomes, and foster a culture of embedding social value at a strategic and day-to-day level. The tools comply with many of the principles of SROI, allowing organizations to integrate social value considerations into their decision-making processes effectively.
Overall, HACT's Social Value Bank and tools provide a practical and accessible way for organizations to measure and manage their social impact, complementing the principles and overarching process of SROI analysis.