[114-1_IB531] Measuring Social Impact: A Lecture on Impact Investing and the SROI Method by Guest Speaker Mr. Yu-Te Lien

Written by Phung Minh Toan(Eric)

On September 16, 2025, as part of the course IB531 Business Model Development and Practice of Social Enterprises instructed by Professor Dr. Yih Jeng, students had the opportunity to attend a guest lecture by Mr. Yu-Te Lien, Co-Founder and Chief Operating Officer of ImpactEX Co., Ltd.. His talk, titled “The Introduction to Impact Investing and the SROI (Social Return on Investment) Method” has provided valuable insights into how businesses today can align economic goals with social responsibility.

Mr. Lien began with the thought-provoking question “How to make money by doing good?”, introducing impact investing as a global trend that aims to achieve both financial returns and positive social outcomes. By distinguishing it from traditional charity and profit-driven enterprises, he highlighted its unique role in balancing sustainability with profitability, illustrated through examples like Liberty United and TerraCycle. He then turned to the SROI (Social Return on Investment) method, centered on the question “For every dollar invested, how much social value is created?”. Guiding the class through its six steps - from defining scope and mapping stakeholders’ outcomes to assigning financial values, accounting for external factors, calculating the ratio, and reporting results.

To deepen engagement, students were divided into seven groups to discuss how the SROI framework could be applied to their own business proposals, under the theme SROI Practice and Application. Each group was encouraged to practice the six stages of SROI: first, by defining the scope of their project and identifying relevant stakeholders (Stage 1), then mapping inputs, outputs, and outcomes into an impact map (Stage 2). They continued by assigning financial proxy values to outcomes (Stage 3), considering external factors such as deadweight, displacement, and attribution (Stage 4), and assessing the project’s long-term effectiveness with drop-off rates to calculate SROI (Stage 5). Finally, groups prepared to reflect on how they would disclose and communicate their results in line with the eight principles of SROI (Stage 6). This activity gave students practical exposure to the framework, helping them understand not only the theory behind SROI but also how it can be systematically applied to evaluate and communicate the social value of their own projects.

Finally, Mr. Lien presented several real-world case studies in Taiwan, such as Cathay Life Insurance and the Han-Chi Foundation, which successfully applied SROI to improve stakeholder communication, strengthen governance, and ensure sustainable growth. His lecture reinforced the idea that successful social enterprises must not only “do good” but also prove and measure the impact of doing good. For students of IB531, this session offered both inspiration and practical tools for designing enterprises that create long-term value for investors and society alike.