Investigating the Social Return on Technical Investments

Abstract

In this paper, we examine the importance of the use of the social Return of Investment (SROI) method by investors, company managers in the evaluation of a particular technical investment or activity. The SROI analysis method differs from other financial valuation methods because it collects and analyses information about the social value of the resources used by the activities. In most cases, the economic analysis of investments does not contain such information, and neither such that would examine the impact of these resources on society. As a result of the SROI analysis, qualitative, quantitative and financial data are available on the project, providing the end-user with information on the social values of the examined investment. This issue is particularly important for environmental investments financed by the European Union.