Beyond Financial Returns: Comparing ROSI and SROI as Tools for Valuing Sustainability

Abstract

This article critically examines how sustainability value is measured by organizations, from the perspectives of both shareholders and society. While Social Return on Investment (SROI) and Return on Sustainability Investment (ROSI) are widely recognized as sustainability measurement frameworks, the distinction between their respective roles and functions remains underexplored. Through a conceptual analysis of both frameworks, this article clarifies the purpose and applicability of each. The findings indicate that SROI measures the social value generated for relevant stakeholders, including the implementing organization, whereas ROSI measures the financial value that sustainability investments generate for the organization itself, through cost efficiency, capital access, and reputational gains. Although the two frameworks differ in focus and target beneficiaries, both translate sustainability impact into financial metrics that speak to their respective audiences. Ultimately, this convergence toward financial return reflects a broader shift in which sustainability value—whether social or corporate is increasingly legitimized through the language of economic return.