Social Impact Investing

VII. Social Earnings Ratio
The Social Earnings Ratio, sometimes abbreviated to S/E, is a single-number
metric, used to measure the social impact of various organisations. The non-financial
metric is similar to the price earnings ratio, but instead focuses on valuation against
social impact, rather than projected earnings.
The ratio was founded in 2011 by Olinga Ta'eed and a team of financial experts, in
order to find a way of measuring financial
investment against real
social impact. It began
as a university collaboration in the
United Kingdom,
before becoming
an
internationally
recognized form of
when the CCEG
measurement,
was founded.
In 2013, it was identified in a news
article as "the most rapidly
adopted metric in the world".
History
The Social Earnings Ratio (S/E) is a form of measuring sentiment and converting it into
financial value. The ratio began as an idea to develop a single number metric to
measure social value. In November 2011, a University collaboration was formed to
manage this development. Around 18 months later, the Centre for Citizenship,
Enterprise and Governance (CCEG) was formed in April 2013, to act as the standards
body to curate the ratio globally. The standards body would also be run as a non-profit.
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