Digital Reputation is now widely prevalent in our Economy, basically a Reputation Economy. Today Digital Reputation is power. The Reputation define how others see us and what they will do for us. Reputation can therefore actuate the success of our Business. With the consistent social’s influence of Reputation, it is necessary to plan the impact that our business could have at a social level by adopting the principles and values of SROI (Social Return of Investment).
Through the SROI we are able to identifying and mapping the changes in place in our organization by producing important information for improving the quality of work and its performance. With this analysis tool we can highlight how much of our work can be useful for our community by reporting back its social value and consequently feed our credibility and reputation. This broader concept of value has the goal of quantifying the improvement of social welfare by measuring social & economic outcomes and using the monetary value to represent them.
The SROI tell us the changes on which we base our decisions in order to choose the best direction to maintain and improve our reputation. Our personal judgment in the SROI analysis merges with its seven principles:
- Involve Stakeholders
- Understand the Change
- Evaluate what Counts
- Include only what is Material
- Do not Overestimate
- Be Transparent
- Check the Result
Both large and small businesses can use SROI to assess the risks and opportunities that their products and services have on employees, suppliers, customers and local communities. These companies can adopt both evaluative and predictive SROI analysis according to the reputation strategy in place. Through stakeholder involvement, companies become more sustainable as they improve their business profile by adopting more convincing offers and attracting funding.
The results of a predictive SROI analysis may involve the reviewing of planned activities, while those of an evaluative SROI analysis should produce changes in your business. All these changes will have to be published for stakeholders, local communities and a wider audience. The reputable and indirect economic return of these efforts will reward the company with greater digital and media exposure.
By highlighting both your processes and results of this analysis you will contribute to your social-media and reputation plan. I therefore invite you to use all the potential of SROI analysis and make viral your social commitment and its results.