SROI and SAA - The Social Audit Network

ValuationIndicatorsScopeIndicators, outcomes andoutputsSROI involves stakeholders in defining the outcomes to be measured.This is less likely in SAA which will include questions about outcomes as partof the later consultation for the social accountsStep 2.2 – 2.4 – agreeindicators and ways ofcollecting dataMapping outcomesSROI uses an impact map. (Principle –Understand what changes)SAA encourages use of various social accounting planning tools, including amodified impact map; simple spreadsheet; indicator treeSROI determines the scope as aboveSAA determines scope for social accounts in light of what is achievable andrequires what is excluded from the scope to be clearly statedStep 2.1, 2.5, 2.6 –agree social accountingplan and scopeSROI focuses almost exclusively on outcomes and the inputs required toachieve those outcomes. (Principle –Understand what changes) (Principle –Only include what is material)SAA requires evidence of performance (outputs) as well as of outcomes to beincluded.Step 2.2 & 2.3 -Evidencing outcomes andgiving them a valueOtherwise, there are considerable similarities in identifying informationrequired and ways of consulting with stakeholders to obtain it.Valuing outcomes is a central and essential part of SROI and financial proxiesare used for this (Principle - Value what matters)Evidencing outcomes andgiving them a valueFinancial proxies are not central for SAA, although some financialisation isincreasingly used

Reporting and verifyingCalculating SROIImpactEstimation and calculation of deadweight, displacement and attribution areimportant for SROI. (Principle – Do not overclaim)Estimation and calculation of above does not happen in SAA although shouldbe acknowledged. Impact is demonstrated and reported but not necessarilymeasured.Application of the SRO principles means that a ratio of value to investmentcan be calculated……and giving them a valueEstablishing impactCalculating SROISuch calculation is not required in SAA unless an organisation has included anSROI analysis for a specific project or part of its operation within its socialaccountsSROI produces an SROI reportSAA produces draft social accountsSROI has 2 levels for assurance. Level 1 (principles) is now available and theSROI Network is working with SAN to develop level 2 (principles and data)(Principle – Verification)SAA insists on a full verification process and has developed three differentlevels of audit to be carried out by an approved social auditor sitting with asocial audit panelStep 2.6 – draft socialaccountsSteps 3.1 – 3.6 – SocialAudit Panel etcReporting…..……. using and embedding(inc verification)Both SROI and SAA expect an organisation to publish its SROI report/SocialAccounts and discuss the findings with stakeholders(Principle – Transparency)February 2010