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Assessment of the Economic and Social Impact Using SROI: An Application to Sport Companies

Author

Listed:
  • Giovanni Lombardo

    (DIME, University of Genoa, 16145 Genoa, Italy)

  • Andrea Mazzocchetti

    (DIME, University of Genoa, 16145 Genoa, Italy)

  • Irene Rapallo

    (DIME, University Spin Off SIGMA NL, 16145 Genoa, Italy)

  • Nader Tayser

    (DIME, University Spin Off SIGMA NL, 16145 Genoa, Italy)

  • Silvano Cincotti

    (DIME, University of Genoa, 16145 Genoa, Italy)

Abstract

This paper evaluates the social impact of a football club and its philanthropic organization on the local community and its stakeholders, namely supporters, sponsors, players, and shopkeepers. The methodology used is the Social Return on Investment (SROI). SROI methodology includes all the beneficiaries that are beyond the scope of the company’s accounting and its fiscal and financial statements. The aim is to assess both the benefits and the negative impacts of a company’s activities on stakeholders. This type of analysis combines the use of qualitative, quantitative and financial information gathered and analyzes them in order to estimate the amount of “value”, including mental health and well-being, created or destroyed by a business activity, by a project or by the overall operation of an organization. The sport club under review in the present analysis is called Virtus Entella, an Italian football club playing in the second division. An SROI indicator was applied in reference to the business activity that took place during the championship season 2017/2018. Results show that the social impact created during the championship amounts to approximately 44 million Euro against a financial investment of 15 million Euro, producing an SROI ratio of 2.98:1. This outcome suggests that for every euro invested by the football club, about 3 Euros of social value is created.

Suggested Citation

  • Giovanni Lombardo & Andrea Mazzocchetti & Irene Rapallo & Nader Tayser & Silvano Cincotti, 2019. "Assessment of the Economic and Social Impact Using SROI: An Application to Sport Companies," Sustainability, MDPI, vol. 11(13), pages 1-21, July.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:13:p:3612-:d:244649
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    References listed on IDEAS

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    Cited by:

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    2. Bottero Marta & Datola Giulia, 2020. "Addressing Social Sustainability in Urban Regeneration Processes. An Application of the Social Multi-Criteria Evaluation," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    3. Kun Ai & Racek Oldrich & Hai Tan & Peng Xu, 2020. "Sustainable Innovation in Football Referee Training in Czech Republic," Sustainability, MDPI, vol. 12(7), pages 1-13, April.
    4. Olena Liakh & Francesca Spigarelli, 2020. "Managing Corporate Sustainability and Responsibility Efficiently: A Review of Existing Literature on Business Groups and Networks," Sustainability, MDPI, vol. 12(18), pages 1-42, September.
    5. Antoni F. Tulla & Ana Vera & Carles Guirado & Natàlia Valldeperas, 2020. "The Return on Investment in Social Farming: A Strategy for Sustainable Rural Development in Rural Catalonia," Sustainability, MDPI, vol. 12(11), pages 1-28, June.
    6. Maria-Teresa Bosch-Badia & Joan Montllor-Serrats & Maria-Antonia Tarrazon-Rodon, 2020. "The Capital Budgeting of Corporate Social Responsibility," Sustainability, MDPI, vol. 12(9), pages 1-28, April.
    7. Iluminada Fuertes-Fuertes & J. David Cabedo & Inmaculada Jimeno-García, 2019. "Capturing the Invisible Wealth in Nonprofits to Overcome Myopic Perceptions," Sustainability, MDPI, vol. 12(1), pages 1-18, December.
    8. Kemi Adeyeye & John Gallagher & Helena M. Ramos & Aonghus McNabola, 2022. "The Social Return Potential of Micro Hydropower in Water Networks Based on Demonstrator Examples," Energies, MDPI, vol. 15(18), pages 1-21, September.
    9. Andrea Di Francesco & Maria Pinelli & Emanuele Lettieri & Giovanni Toletti & Manuela Galli, 2023. "Towards a More Inclusive Society: The Social Return on Investment (SROI) of an Innovative Ankle–Foot Orthosis for Hemiplegic Children," Sustainability, MDPI, vol. 15(5), pages 1-15, February.
    10. Aurora M. García-Vallejo & Alberto Albahari & Vicente Añó-Sanz & Aurora Garrido-Moreno, 2020. "What’s Behind a Marathon? Process Management in Sports Running Events," Sustainability, MDPI, vol. 12(15), pages 1-18, July.

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