Social Return on Investment: A CSR Assessment Tool

Corporate Social Responsibility (CSR) in India is essential for social development and measuring the real value of CSR initiative is of prime importance in today’s time. Social Return on Investment (SROI) offers a comprehensive view of the value creation beyond traditional financial metrics. SROI monetizes the Socio, Economic and environmental outcomes. The paper elaborates the relevance, application and methodology of SROI through three case studies on different thematic areas of intervention. The Authers' outline the core principles of SROI and through discussion on major programmes implemented across India they bring forward how it enhances community leadership and strengthens social capital. SROI is not just a measurement tool but a major lever for accountability and creating social change. The organisations that integrate SROI are able to create a sustainable and measurable community value.

Introduction

Corporate Social Responsibility (CSR) in India has evolved to create long-term value for both communities and businesses. Social Return on Investment (SROI) has emerged as a powerful tool to measure the true impact of these initiatives.

SROI is an impact assessment framework that measures the social, environmental, and economic value generated by a welfare program. SROI emphasises well-being, reducing inequality, and sustainability, which differ from traditional financial metrics. It assigns monetary values to tangible and intangible outcomes, providing a clear ratio of social impact per unit of investment. An SROI ratio of 5:1 means every `1 invested generates `5 in social value. So, SROI is an essential tool for assessing the full spectrum of benefits an organisation provides to communities.

Relevance Of SROI In CSR

CSR interventions are often multi-dimensional, and conventional reporting methods cannot measure the values created. SROI strengthens the business case for CSR by ensuring accountability and transparency. As an assessment tool it offers the evidence needed for sustainable development practices and identifies interventions that generate consistent value over time. SROI highlights long-term benefits beyond immediate outputs and provides a framework for corporations to drive deeper and systematic change

The Process And Principles Of SROI

Seven key principles of SROI are engaging stakeholders, understanding change, valuing what matters, focusing on what is material, avoiding over-claiming, ensuring transparency, and verifying results. The non-profit organisations can now assess and communicate the social value they create. The SROI framework adopted for any study follows a structured six-phase approach.

Key Steps For SROI Calculation In A Life Scenario
  1. Define the boundaries and objectives of the SROI analysis. Determine the activities, programs, or initiatives to focus on, and identify all relevant stakeholders (anyone who experiences change as a result of the activity). Engage these stakeholders to understand what outcomes matter most to them.
  2. Build a “theory of change” to map the causeand-effect relationship between your activities, outputs, and the resulting outcomes (the changes experienced by stakeholders). The outcomes can be varied- positive or negative, intended or unintended, and may be social, environmental, or economic in nature.
  3. Collect data and evidence to show whether the identified outcomes have occurred. Then assign monetary values to these outcomes using financial proxies. This step involves using available market data and public statistics (e.g., healthcare cost savings) or conducting surveys (e.g., willingness to-pay) to estimate the value of intangible outcomes such as improved well-being or increased confidence. Social Return on Investment: A CSR Assessment Tool
Establish Impact

Calculate the net social impact by applying adjustment factors to avoid over-claiming the value created. This requires accounting for:

  • Deadweight: The amount of outcome that would have happened anyway without the initiative.
  • Attribution: The portion of the outcome caused by other organisations or external factors.
  • Displacement: When an outcome displaces another outcome (e.g., a job created in one area leads to a job loss elsewhere).
Calculate the SROI Ratio

The final step is to calculate the SROI ratio by comparing the adjusted value of the social outcomes to the total investment (inputs). The formula is:

SROI Ratio =
Present Value of Outcomes
Total Investment

SROI Ratio=Present Value of Outcomes/Total Investment

A ratio of 3:1, for example, means that every Rs 1 invested generated Rs 3 in social value. The final report should include both the ratio and a narrative that explains the methodology, assumptions, and qualitative data, for transparency and credibility.

Reporting

This final step involves creating a comprehensive report that encapsulates the methodologies, values, and findings of the SROI analysis. This report communicates the social, environmental, and economic value derived from the project and showcases the organisations commitment to holistic impact. The report is shared through diverse communication channels and embedded in decision-making processes for creating lasting impact.

SROI helps design scalable, self-sustaining programs by enabling companies to assess which intervention generates the highest revenue for the money spent. SROI provides valuable insights into when to expand or redesign a project. Corporates can work strategically to unlock new pathways to scale developments beyond the main project.

CASE 1
Women Literacy Program

  • In one of the Women Literacy Program conducted in North and North West Delhi, aimed to help underprivileged women attain functional literacy through a unique speech based software. Many women learnt numbers, words, and sentence formation, and also became financially independent as many chose to become instructors after completing the course.

    The SROI conducted by a CSR consulting firm found that the real impact was beyond literacy. Eventually, many program graduates went on to become community leaders, mentors, and entrepreneurs, demonstrating the transformative power of education. Data-driven insights helped to measure the real-world impact, which further highlighted how every rupee invested translates into economic upliftment while reinforcing the projects’ contribution to long-term community sustainability.

  • A significant number of women gained access to government schemes, including Ladli Yojana, Sukanya Samriddhi Yojana, and Ayushman Bharat, thereby securing financial and healthcare benefits. Due to increased medical awareness, there has been a reduction in health-related deaths.

  • The success of the Women Literacy Program organised by this CSR consulting firm was a benchmark for other organisations willing to drive social impact. Revealing quantifiable benefits and a strong return on investment, the initiative served as a testament to the power of education to transform lives and foster inclusive economic growth.

    •
    The Key Findings of the WL program
  • 89 per cent of women do simple calculations easily as they can now read and write.
  • 82 per cent of women were able to read newspapers after the program
  • 91 percent of women can sign documents.
  • 90 per cent of women affirmed that the program supported skill development and functional literacy
    •
    Key Impact of the WL Program
  • 75 per cent of the beneficiaries could commute alone as the program helped them read signboards/posters and bus numbers easily.
  • 50 percent of the beneficiaries opened bank accounts after the program helped them read signboards/ posters and bus numbers easily.
  • 50 percent of the beneficiaries opened bank accounts after the Program and can now conduct bank transactions and operate ATMs.
  • 72 per cent of the beneficiaries were more involved with children's education and further helped them in studies/ reviewed their report cards.
  • 78 percent of beneficiaries agreed that the program improved their communication skills.
    •
    Invisible Impact of the WL Program

    The WL program showed intangible transformations in the lives of its beneficiaries as women were less hesitant and gained confidence. They actively participated in community affairs and collaborated with other women and local agencies. Women became more aware of their rights and were able to make informed decisions. They developed a sense of respect. Further their progress created a sense of urgency among women in contributing to family's wellbeing and the resultant impact of perceived reduction in gender inequality at home.

    Challenges and Barriers to Carrying Out the WL Program

    A major challenge observed during the earlier stages of the program was in mobilising women and their families who could not visualize any immediate benefits of women getting education so late in life. The male family members at home were aware of the prospect of women getting more income than them in the eventuality of their education and hence resisted their participation in the program. However, after seeing the first signs of financial gains at home, families slowly started supporting women to pursue the program.

    Concerns about infrastructure, such as cramped classrooms that made teaching difficult, were common. Looking for replacement instructors on short notice was another problem, as limited funds and low salaries constrained program expansion. The program continued to reveal that, with determination and community support, barriers to women’s education and empowerment could be overcome.

    "SROI stands as the essential bridge between purpose and performance. Its adoption will allow organisations to scale empathy-driven models."

    CASE 2
    School Toilet Complexes in Tamil Nadu: A Case Study on Measuring Social Return on Investment (SROI)

    A leading Non-Banking Financial Company (NBFC) partnered with a pioneering WASH-sector organisation to improve sanitation and hygiene for schoolchildren across Tamil Nadu. Implemented in three phases between FY 2018–2021, the initiative focused on constructing modern school toilet complexes equipped with incinerators and promoting healthy hygiene practices among students. Beyond infrastructure, the project addressed critical issues of menstrual health, dignity, and school attendance— especially for adolescent girls.

    he CSR programme targeted districts including Tiruchirappalli, Tanjore, Pudukottai, Karur, Madurai, Salem, and Namakkal. Through clean and safe sanitation facilities, health education sessions on handwashing, and menstrual hygiene management training using reusable cloth pads, the project created an environment that supported better health, improved confidence, and long term behaviour change in schools.

    The SROI: Capturing the Real Value of School Sanitation

    The SROI assessment conducted by ABC CSR consulting firm explored the scope of the intervention, identified key stakeholders, and measured both direct and indirect benefits created over three years. With a total investment of ₹4 crore to construct 100 school toilet complexes, the programme generated a Social Return on Investment of ₹1.62—meaning every ₹1 invested created ₹1.62 worth of social value.

    This return reflects not just reduced medical expenses due to fewer urinary tract infections (UTIs), but also improved student attendance, reduced wage loss for parents, and strengthened dignity and confidence among adolescent girls. By quantifying social change in monetary terms, the findings offered the NBFC actionable insights to plan, evaluate, and strengthen its CSR strategy in the future.

    Tangible Benefits of the School Sanitation Initiative

    Before the intervention, many students—especially girls—hesitated to use school toilets due to poor conditions, leading to health issues like UTIs, frequent absences, and significant anxiety. The new toilet complexes changed this trend dramatically.

    Students now had access to clean, safe, and functioning toilets, leading to a measurable reduction in UTI cases. Parents, who earlier lost daily wages accompanying children for treatment, reported relief from financial stress. What emerged was not just an improvement in health, but the creation of a healthier, more dignified school environment where children could focus on learning without fear or discomfort.

    Key Impacts of the Initiative

    • Higher school attendance, especially among girls, due to improved toilet access and fewer illnesses.

    • Improved academic performance: linked to consistent attendance and better health.

    • Greater comfort and confidence: among girls in managing menstrual hygiene in school.

    • Enhanced sense of privacy and dignity: for all students.

    • Improved community perception: of school conditions, hygiene, and overall environment.

    • Invisible Impacts: Beyond Infrastructure and Numbers

    The toilet complexes generated intangible yet deeply transformative outcomes. Students began practising improved sanitation habits, such as regular handwashing and hygienic pad disposal. Girls expressed reduced anxiety and shame around menstruation, fostering self confidence and healthier peer interactions. Parents felt reassured knowing their children had clean, safe facilities—strengthening trust in the school system.

    Teachers noted better class participation, improved focus, and a more positive learning atmosphere. In many communities, conversations about hygiene, dignity, and menstrual health opened up for the first time, Breaking long-standing taboos. These invisible impacts strengthened not only individual well-being but the broader social fabric.

    Challenges and Barriers to Implementation

    Mobilising schools and communities required continuous counselling, as many initially underestimated the importance of sanitation. Some parents were hesitant to adopt reusable cloth pads due to misconceptions. Occasionally, maintenance of toilet complexes posed challenges when schools lacked adequate staff or funds.

    Infrastructure-related hurdles, such as securing space within the school and ensuring reliable water supply, demanded coordination with local authorities. Limited budgets also restricted the pace of expansion. Despite these barriers, the programme persisted—proving that with community involvement and consistent effort, school sanitation can create powerful long-term change.

    Conclusion: SROI of 1.62—A Strong Return and a Stronger Social Impact

    With an SROI of `1.62, the School Toilet Complex Project demonstrated that investments in sanitation create significant economic and social value. By improving health, dignity, school attendance, and menstrual hygiene management, the initiative produced benefits that extended far beyond the school premises and deep into the surrounding communities.

    This case stands as a compelling example for organisations seeking to create meaningful, measurable impact. It highlights how strategic CSR investments can transform school environments, uplift communities, and build pathways toward healthier, more equitable futures for children across India.

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    CASE 3
    Project to Support Cancer Patients Nationwide

    Launched by a global multinational corporation, the project is launched to support cancer patients and their caregivers across India. The initiative sought to address the overwhelming medical, emotional, logistical, and financial challenges that families face during the cancer treatment journey. With help desks established in leading hospitals across the country, the programme has supported more than 600,000 beneficiaries, including 70,000+ cancer patients, providing critical assistance when they needed it most.

    Grounded in compassion and inclusivity, the project focused on enhancing patient care through a holistic, person-centred model. The initiative recognised that navigating the healthcare system is often as daunting as the disease itself. By offering guidance, counselling, access to social support schemes, and community-level awareness, the project created a wraparound support system that strengthened both patients and their caregivers at every step.

    A Framework for Social Value: The Implementation of SROI in the Project

    While the programme addressed non-medical challenges with exceptional depth, the potential application of Social Return on Investment (SROI) offers a structured way to quantify the project’s significant and wide-reaching impact. By translating social value into a metric that aligns with organisational decision-making, SROI helps demonstrate how each rupee invested in patient support transforms into improved access, enhanced emotional resilience, reduced financial stress, and strengthened community health systems.

    Integrating SROI in such project’s influences continued strategic CSR funding and enables replication across states. It reinforces that compassionate care is not just ethical—it also generates measurable social and economic value.

    Tangible Benefits of this Project

    The help desk for this project, became the first point of clarity and comfort for many families entering large cancer hospitals. Patients received support with hospital registrations, documentation, medical navigation, travel coordination, and accommodation guidance—services that reduced delays and minimised treatment disruptions.

    Beyond immediate care, community health workers trained in this project played a vital role in promoting early detection, especially in breast cancer cases. The financial guidance provided through linkages with government and charitable schemes helped families secure the support they needed, easing the heavy economic burden often associated with long-term cancer treatment.

    Key Impacts of the Project

    • Significantly improved patient navigation, reducing delays and confusion in hospital processes.

    • Enhanced treatment adherence due to reduced logistical stress and improved access to support services.

    • Strengthened financial resilience among patients through linkages to aid schemes and donor networks.

    • Improved psychological well-being, with counselling helping patients cope with fear, trauma, and uncertainty.

    • Increased early detection rates in communities where trained health workers conducted awareness outreach.

    Invisible Impact: The Transformative Ripple Effect

    • Caregivers repeatedly expressed relief in having a reliable support system, reducing feelings of helplessness and emotional exhaustion.

    • Patients gained confidence in navigating their treatment pathways, which contributed to reduced dropouts and stronger resolve.

    • Communities benefited as conversations around cancer, stigma, and early detection gained new openness. Trained health workers mostly women emerged as leaders advocating for preventive health, influencing long-term shifts in community healthseeking behaviour.

    • These invisible yet powerful changes demonstrated how support, empathy, and structured guidance can rebuild courage and restore hope in the face of severe illness.

    Challenges And Barriers In Implementation

    Working in high-volume cancer hospitals posed multiple operational and human resource challenges. Many families lacked awareness of the availability of support programs, which required repeated engagement and counseling. Emotional fatigue among both patients and caregivers meant another barrier demanding a sensitive and a patient centric approach. Ensuring accountability from project hospitals through maintenance of patients' records and documents, as per project needs, without any direct administrative control over their staff and systems, was a significant challenge encountered in the implementation. Despite these challenges, the project continued to offer multiple tangible and intangible benefits to thousands of cancer patients and their families nationwide.

    Conclusion: Enabling Scalability Of Impact Through SROI

    The project has set a benchmark for holistic cancer care support in India. Integrating SROI into future impact assessments will strengthen the case for scaling such initiatives across geographies, ensuring that funding flows toward interventions that generate sustainable, measurable, and transformative social value.

    SROI stands as the essential bridge between purpose and performance. Its adoption will allow organisations to scale empathy-driven models like this project, enabling cancer care ecosystems to evolve with stronger impact, accountability, and reach.

    References:

    1. Banke-Thomas, A., Madaj, B., Charles, A., & van den Broek, N. “Social Return on Investment (SROI) Methodological Challenges in Public Health.” Health Policy and Planning, 30(3), 2014.

    2. Emerson, J. “The Nature of Returns: A Social Capital Markets Inquiry into Elements of Investment and The Blended Value Proposition.” Blended Value Project, Harvard Business School, 2000.

    3. Nicholls, J., Lawlor, E., Neitzert, E., & Goodspeed, T. “Seven Principles of Social Value.” Social Value UK & Social Value International, 2012.

    4. OECD. “Measuring the Impact of Social Programmes: Evaluation, Metrics, and SROI Approaches.” OECD Publications, 2019.

    5. Social Value International. “SROI Case Studies and Applications Across Sectors.” Social Value International Publications, 2020.