Value Beyond Profit: A Conceptual Review of Social Return on Investment in Community Investment Decision-Making

HRMARS - Traditional investment appraisal methods often prioritize direct financial returns while overlooking the broader social, environmental and intangible value generated by community initiatives. This conceptual paper adopts an integrative literature review approach to synthesize recent empirical studies, case-based evidence and methodological discussions on Social Return on Investment (SROI) as a framework for community investment decision-making. SROI offers a structured approach for capturing wider outcomes by combining stakeholder engagement, outcome mapping and financial valuation techniques. Through this approach, diverse impacts such as improved wellbeing, stronger social cohesion, environmental sustainability and community resilience can be translated into monetary values that allow comparison with conventional return on investment measures. The paper demonstrates that SROI enhances transparency, accountability and evidence-based resource allocation by making visible the social value that is often excluded from traditional appraisal systems. Its main contribution lies in clarifying how SROI functions not merely as an impact measurement tool, but as a strategic decision-making framework that enables policymakers, funders and practitioners to align community investment with long-term societal value and sustainable development objectives.