Social Return on Investment (SROI) framework for measuring the real value of Sungai Muda flood mitigation program

Don Ramli Dona Raihana, Aiyub Kadaruddin, Arifin Kadir,

Abstract

Movement towards modern eco climate has seen an increasing interest in measuring the social impact of projects, programs, organizations, activities, businesses and policies. Everybody seems eager to know the ‘real value’ of the activities they carried out. Governments have a strong imperative responsibility to measure the social impact of policies, programs and funded activities. Managers would like to know the performance they have been achieved so far, with a chance to improve for continuous efficiency and effectiveness. Investors want to demonstrate the social value their money is creating. Corporations are showing interest in social investment. Corporate social responsibility would love to share the social benefits as a result from the social work they have done. Social return on investment (SROI) has emerged as an approach to meet these demands, as it has been promoted as a more holistic approach to demonstrate the value for money. Hence, this article attempts to investigate the real value of flood mitigation program in Sungai Muda, Kedah as a case study to examine the usefulness of the SROI method. SROI analysis offers a mixed methods framework which involves both qualitative and quantitative data that helps to measure, manage and give a better understanding about the impacts of Sungai Muda Flood Mitigation Program with emphasizing the element of value for money. This study has found a positive social return expressing by the SROI ratio comprised of social, economic and environmental outcomes. The result shows that the SROI framework can indeed help the governments, managers, investors, corporations and corporate social responsibility to place social and environmental aims on a par with economic ones.

References

1. Antonaras, A., Iocovidou, M., Memtsa, C. (2011). Measuring social return on investment using the EBEN GR Business Ethics Excellence Model. Current Issues of Business and Law, 6(1), 69-89. 2. Arvidson, M., Lyon, F., McKay, S., Moro D. (2010). The ambitions and challenges of SROI. Birmingham: Third Sector Research Centre. 3. Arvidson, M., Lyon, F., McKay, S., Moro D. (2013). Valuing the social? The nature and controversies of measuring social return on investment (SROI). Voluntary Sector Review, 4, 3-18. 4. DID. (2011). Sg. Muda flood mitigation project. Restricted from http://www.water.gov.my/. 5. Emerson, J., Cabaj, M. (2000). Social return on investment. Making Waves, 11, 10-4. 6. Emerson, J. (2003). The blended value proposition: Integrating social and financial Returns. Calif Manage Rev, 45, 35-51. 7. EPU. (2013). The Malaysian well-being report 2013. Putrajaya: EPU. 8. Millar, R., Hall, K. (2013). Social Return on Investment (SROI) and performance measurement. Public Manage Rev., 15, 923-41. 9. Nicholls, J., Lawlor, E., Neitzert, E., Goodspeed, T. (2012). A guide to social return on investment. 2nd ed. London: The Cabinet Offfice. 10. Norman, W., MacDonald, C. (2004). Getting to the bottom of triple bottom line. Bus Ethics Q, 14, 243-62. 11. Rotheroe, N., Richards, A. (2007). A social return on investment and social enterprise: transparent accountability for sustainable development. Social Enterprise Journal, 3, 31-48. 12. Scholten, P., Nicholls, J., Olsen, S., Galamidi, B. (2006). Social return on investment: A guide to SROI analysis. Amsterdam: Lenthe Publishers. 13. Social Ventures Australia Consulting (SVA). (2012). Social return on investment: lessons learned in Australia. Diambil daripada http://socialventures.com.au/. 14. The Compact. (2010). Overview of the Compact. Restricted from http://www.compactvoice.org.uk /about-compact. 15. The Compact. (2012). Social value and the implications for local Compacts: Guidance note. 16. Tuan, M. T. (2008). Measuring and/or estimating social value creation: Insights into eight integrated cost approaches. Final Paper. Prepared for Bill & Melinda Gates Foundation, Impact Planning and Improvement. 17. Wood, C., Leighton, D. (2010). Measuring social value, the gap between policy and practice. London: Demos. 18. Zappala, G. Lyons, M. (2009).Recent approaches to measuring social impact in the Third Sector: An overview. CSI Background Paper No. 6 July 2009.