Flood mitigation as social investment: Leveraging SROI for sustainable disaster management in Sungai Muda, Kedah

Dona Raihana Don Ramli, Kadaruddin Aiyub, Azahan Awang, Sarina Yusoff, Mohamad Xazaquan Mansor Ali

Abstract


Evaluating the value generated from the flood mitigation projects is crucial in assessing the effectiveness, efficiency and sustainability. The current economic landscapes have faced significant challenges, primarily due to resource scarcity coupled with escalating demands. This scenario has intensified pressure on disaster management, impacting both for-profit and nonprofit sectors. A significant obstacle in securing funding for these projects is the challenge of demonstrating their value, return on investment, particularly since the outcomes often pertain to "soft outcomes" or "intangible value," which are inherently difficult to quantify. Therefore, there is an increasing recognition to incorporate the three pillars of sustainability social, economic and environmental elements into every investment decision related to flood disaster management. This approach not only supports resilience and long-term impact but also aligns with Sustainable Development Goals (SDGs). This article investigates the Sungai Muda Flood Mitigation Project as a case study to evaluate the application of the Social Return on Investment (SROI) methodology. The findings markedly positive net social benefit, quantified as a social return value of RM4,892,641,540.00, indicating that the program generates RM4.88 in social benefits for every ringgit invested which consists of social, economic and environmental elements. This positions the project as a substantial social investment that yields significant measurable social value for individuals, communities and society at large. Consequently, the SROI framework emerges as an invaluable tool for stakeholders including government agencies, project managers, investors and corporate social responsibility initiatives seeking to assess sustainability from a financial approach. By fostering a holistic understanding of value in flood disaster management, stakeholders can make informed decisions that strengthen the performance and sustainability of their investments.

 

Keywords: Flood disaster management, flood mitigation projects, social investment, Social Return on Investment (SROI), three pillars of sustainability


Keywords


Flood disaster management, flood mitigation projects, social investment, Social Return on Investment (SROI), three pillars of sustainability

Full Text:

PDF

References


Banke-Thomas, A. O., Madaj, B., Charles, A., & van den Broek, N. (2015). Social return on investment (SROI) methodology to account for value for money public health interventions: a systematic review. BMC Public Health, 15, 582.

Brouwers, J., Prins E., & Salverda, S. (2010). Social return on investment: A practical guide for the development cooperation sector.

Classens, M. (2015). What’s in it for the volunteers? An SROI approach to volunteers’ return on investment in the Good Food Markets. Non-profit Management and Leadership, 26(2), 145-156.

Contor, H., Bechauf, R., & Guzzetti, M. (2025, February 12). Sustainable Asset Valuation of Nature-Based Flood Mitigation Infrastructure in Drakenstein, South Africa. International Institute for Sustainable Development.

Corvo, L., Pastore, L., Mastrodascio, M., & Cepiku, D. (2022). The social return on investment model: A systematic literature review. Meditari Accountancy Research, 30(7), 49–86.

Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative and Mixed Methods Approaches (5th ed.). Sage Publications.

Department of Statistics Malaysia, DSOM. (2024). Malaysia Well-being Index Report 2022.

Department of Statistics Malaysia. (2024). Malaysia Well-being Index Report 2022.

Easterling. D., Jacob, R. R., Brownson, RC., Haire‐Joshu, D., Daniel A. Gundersen, D. A., Angier, H., DeVoe, J. E., Likumahuwa-Ackman, S., Vu, T., Glasgow, R. E., & Schnoll, R. (2023). Participatory logic modeling in a multi-site initiative to advance implementation science. Implementation Science Communications, 4, 106.

Emerson, J. (2003). The nature of returns: A framework for analyzing the performance of social enterprises. California Management Review, 45(3), 36-51.

Gibbon, J., & Dey, C. (2011). Developments in social impact measurement in the third sector: scaling up or dumbing down? Social and Environmental Accountability Journal, 31(1), 63-72.

Gibson, J., Jones, A., Travers, H., & Hunter, E. (2011). Performative evaluation and social return on investment: Potential in innovative health promotion interventions. The Royal Australian and New Zealand College of Psychiatrists, 19, 553-557.

Hall, M., Millo, Y., & Barman, E. (2015). Who and what really counts? Stakeholder prioritization and accounting for social value. Journal of Management Studies, 52(7), 907-934.

Hermansyah, A. (2023). Decision-makers benefit from SROI by considering broader impacts in their choices, enhancing their ability to account for social, economic and environmental effects. Journal of Economic Impact Analysis, 4, 112–125.

Hyatt, D., Anderson, R., & Miller, J. (2022). Demonstrating broader social value: The role of SROI in engaging stakeholders. Journal of Social Impact and Evaluation, 18(4), 55–70.

Jabatan Pengairan dan Saliran Malaysia, JPS (2024). Status Terkini Banjir Seluruh Negara Tahun 2024 https://www.facebook.com/jpsmalaysiaofficial/posts/status-terkini-banjir-seluruh-negara-tahun-2024dari-tempoh-1-januari-hingga-10-o/959825226184421/

Jabatan Pengairan dan Saliran, JPS. (2016). Maklumat Asas Pengurusan Lembangan Sungai Muda.

Jenkins, K., Surminski, S., Hall, J., & Crick, F. (2017). Assessing surface water flood risk and management strategies under future climate change: Insights from an agent-based model. The Science of the Total Environment, 595, 159-168.

Kadel, R., Khedher, N. B., & Imbeau, D. (2022). The six stages of Social Return on Investment (SROI) analysis. Journal of Social Impact and Sustainability, 14(1), 45-67.

King, N. (2014). Making the case for sport and recreation services: The utility of Social Return on Investment (SROI) analysis. International Journal of Public Sector Management, 27(2), 152-164.

Krlev, G., Munscher, R., & Mulbert, K. (2013). Social Return on Investment (SROI): state-of-the-art and perspectives - a meta-analysis of practice in Social Return on Investment (SROI) studies published 2002-2012.

Lightbody, L., & Fuchs, M. (2018, January 11). Every $1 invested in disaster mitigation saves $6: Spending to reduce risk saves lives and creates jobs, key study finds. The Pew Charitable Trusts https://www.pewtrusts.org/en/research-and-analysis/articles/2018/01/11/every-1-invested-in-disaster-mitigation-saves

Merino, M., Garcia, M., & Johnson, L. (2022). Understanding the impact of organizational activities: A methodological approach for improved resource allocation. Journal of Strategic Management, 29(3), 112–130.

Mertens, S., Xhauflair, V., & Marée, M. (2015). Questioning the Social Return On Investment (SROI). SOCENT Publication, Interuniversity Attraction Pole on Social Enterprise.

National Disaster Management Agency, NADMA. (2025, March 20). Jumlah Kerugian Akibat Banjir 2024 Cecah RM933.4J https://www.nadma.gov.my/bi/media-en/news/3253-jumlah-kerugian-akibat-banjir-2024-cecah-rm933-4j

Nicholls, J. (2017). The Landscape of Social Impact Measurement: Trends and Debates. In Social Impact Measurement: Theory and Practice. Routledge.

Nicholls, J., Lawlor, E., Neitzert, E., & Goodspeed, T. (2012). A guide to social return on investment: The SROI network.

Nicholls, J., Lawlor, E., Neizert, E. (2009). Seven principles for measuring what matters: a guide to effective public policy-making. The New Economics Foundation.

Pathak, P., & Dattani, P. (2014). Social return on investment: Three technical challenges. Social Enterprise Journal, 10(2), 91-104.

Patil, A. (2023). SROI measures the value created by social programs by defining social value as the changes experienced by stakeholders in their lives. Journal of Social Impact Assessment, 4, 112–125.

Patton, M. Q. (2015). Qualitative Research & Evaluation Methods (4th ed.). Sage Publications.

Pawley, A., Moldoff, D., Brown, J., & Freed, S. (2023). Reducing flood risk and improving system resiliency in Sacramento. California: overcoming obstacles and emerging solutions. Frontiers in Water, 5, 1-26.

Presser, S., Couper, M. P., Lessler, J. T., Martin, E., Martin, J., Rothgeb, J. M., & Singer, E. (2004). Methods for testing and evaluating survey questions. Public Opinion Quarterly, 68(1), 109–130.

Purvis, B., Mao, Y., & Robinson, D. (2019). Three pillars of sustainability: In search of conceptual origins. Sustainability Science, 14(3), 681-695.

Ramli, D. R. D., Aiyub, A., & Arifin, K. (2019). Nilai Pulangan Sosial Pelaburan. Penerbit UKM.

Rotheroe, N., & Richards, A. (2007). Social return on investment and social enterprise: transparent accountability for sustainable development. Social Enterprise Journal, 3(1), 31-48.

Sinar Harian (2024, November 30). Banjir memburuk, cecah 123,729 mangsa seluruh negara. Astro Awani https://www.astroawani.com/berita-malaysia/banjir-memburuk-cecah-123729-mangsa-seluruh-negara-498666

Social Value International. (2015). Social Return on Investment (SROI) Network Guide.

The New Economics Foundation. (2008). Measuring value: A guide to Social Return on Investment (SROI).

United Nations. (2016). Transforming Our World: The 2030 Agenda for Sustainable Development.

Zappala, G., & Lyons, M. (2009). Recent approaches to measuring social impact in the third sector: An overview. CSI Background Paper No. 6.


Refbacks

  • There are currently no refbacks.