Social return on investment and social enterprise: transparent accountability for sustainable development

Abstract

Purpose

To apply the social return on investment (SROI) concept to a case study based on the Furniture Resource Centre Group (FRC Group), a social enterprise based in Liverpool, UK, to satisfy a need for quality affordable furniture for low‐income households.

Design/methodology/approach

The nature of FRC Group’s business is discussed from the viewpoint of how it exemplifies Westall’s (2001) values‐led operation concept with four core values (bravery, creativity, professionalism, passion). Discusses the value of social enterprises and the importance of identifying their social returns as measured by the SROI approach, which was adapted by the New Economics Foundation (NEF) to take account of stakeholder engagement, materiality, impact map, and appreciation of deadweight. Reports on the action research based case study which explored the relationship between the social enterprise business model and the concept of sustainable development.

Findings

The results indicated that the SROI technique demonstrated many qualities of sustainability and, with stakeholder inclusiveness pivotal to the innovative process, it allows for truly connected thinking that reveals advancements in sustainable development.

Originality/value

Provides a stimulus for ongoing research and thought on the dynamic concept of sustainability.

Citation

Rotheroe, N. and Richards, A. (2007), "Social return on investment and social enterprise: transparent accountability for sustainable development", Social Enterprise Journal, Vol. 3 No. 1, pp. 31-48. https://doi.org/10.1108/17508610780000720