SOCIAL RETURN ON INVESTMENT

Social return on investment (SROI) is a method for measuring values that are not traditionally reflected in financial statements, including social, economic, and environmental factors. They can identify how effectively a company uses its capital and other resources to create value for the community. While a traditional cost-benefit analysis is used to compare different investments or projects, SROI is used more to evaluate the general progress of certain developments, showing both the financial and social impact the corporation can have.

SROI is useful to corporations because it can improve program management through better planning and evaluation. It can also increase the corporation’s understanding of its effect on the community and allow better communication regarding the value of the corporation’s work (both internally and to external stakeholders). Philanthropists, venture capitalists, foundations, and other non-profits may use SROI to monetize their social impact, in financial terms.

A general formula used to calculate SROI is as follows:

SROI = SIV- IIA / IIA*110%

Where:

SIV = Social Impact Value

IIA = Initial Investment Amount

Football has numerous benefits on and off the pitch. It helps keep people fit and teaches a person important life skills; it is also a form of entertainment loved by millions throughout the world. How beneficial, then, can football be for an individual, a community or even a country? This is something the UEFA GROW SROI (social return on investment) model is attempting to answer.

UEFA GROW has adapted the SROI model to include grassroots football, with a view to assessing the impact that the sport has on any particular country. The focus is on four key fields – economic, social, health and high performance (in football) – to ascertain the impact that mass participation in football has had in these areas. Finally, a monetary value is placed on the proven benefits in the first three of these fields. 

There are many benefits of this analysis. For the first time, football administrators can talk to governments about the proven benefits of the sport. They can present scientific evidence recognised by the academic world, the World Health Organisation and the Council of Europe’s Enlarged Participation Agreement on Sport (EPAS). The proven broader benefits enable football to speak with new ministries, such as health, education, justice and regional development.

Published by Marco Perrotta

Last news about Italian Football, around the world of soccer and the new tendencies of sports industry in optical Glocal, from one of the 5 big teams in Italy to arrive in a new league like Major League Soccer (MLS) and China Super League. The only indepent site for fans and strangers supporters, that like "Calcio".

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