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Social Return on Investment (SROI) is a systematic way of incorporating social, environmental, economic and other values into decision-making processes. By helping reveal the economic value of social and environmental outcomes it creates a holistic perspective on whether a development project or social business or enterprise is beneficial and profitable. This perspective opens up new opportunities and forms the basis for innovative initiatives that genuinely contribute to positive social change and poverty reduction for all. SROI balances proving and improving or addresses the paradox between accountability and learning by placing the perspectives of the different stakeholders at the center of the valuation process. ​SROI originated in the USA from social enterprises interested in new ways to value the contributions they were making to society. It later arrived in Europe, where there is an increasing interest in the methodology as noted by recent publications by Context international cooperation in the Netherlands, the New Economics Foundation in the UK and the SROI Network head-quartered in the UK. SROI is used for planning purposes in terms of designing a Theory of Change, or Business Plan, and for assessing to what extent impact is realised or changes need to occur in the Business Plan. Although the SROI approach supports the thinking along the lines of a result chain, it does not support the idea of the components being connected in a linear fashion. The SROI approach is embedded in the acceptance of development taking place in situations of complexities. Here is a simple, illustrative example: A project aims to uplift the standard of living of people in a certain area and a beekeeping initiative is set up. As a result a beekeeper now enjoys regular meals whereas before this was not the case. In traditional Cost Benefit analyses, the value of the lunch would be measured in market prices. However after interviewing the beneficiaries, and applying some valuation tools, it turns out that the ‘real’ value is much higher than the market price; social value has been created above the market / economic value which is now being accounted for. Like traditional cost-benefit analysis, SROI includes a ratio; in this case a Social Return on Investment ratio. Where in traditional cost benefit analyses the ratios would be used to compare different projects, the SROI ratio is much more seen as one element in explaining and communicating general progress of certain developments. The number itself is not seen as the end goal. It can be interpreted as aiding the narrative of this particular initiative. The aspect of stakeholder perspectives is essential in the SROI approach. It is precisely the value perspectives of the stakeholders (and most importantly the key beneficiaries), assessed, not by assuming these values, but by thoughtfully and intellectually engaging the stakeholders themselves, which is at the heart of this innovative (e)valuation approach.