What is social value? 

In recent years, social value has emerged as a significant element within the framework of sustainable development, particularly in the context of public procurement.

But whilst some organisations may be confident in their understanding and delivery of social value, many organisations – in particular SMEs – are being introduced to the concept for the first time.

What does social value mean?

Originating from the UK’s public sector, social value seeks to enhance the well-being of communities and generate positive outcomes that extend beyond economic transactions.

The origins can be traced back to the Public Services (Social Value) Act 2012. This piece of legislation was introduced across the UK and requires public authorities to consider the social, economic, and environmental benefits of their procurement decisions.

This Act has marked a shift in focus, moving away from just focusing on cost and efficiency, towards a broader perspective that includes the impact on society at large.

Although the concept is now more established, there is no single definition which can add to complexities in delivering social value initiatives and measuring impact.

Different definitions exist, but typically it encapsulates a wide range of benefits, including; job creation, environmental sustainability, community engagement, and the promotion of equality and diversity.

It encourages organisations to think beyond traditional financial metrics and consider how their operations and supply chains can contribute to a more equitable and sustainable society.

The concept has since gained traction, not just within the public sector but also amongst private sector organisations. It aligns closely with the growing emphasis on corporate social responsibility (CSR) and environmental, social, and governance (ESG) criteria.

Why is it important?

Whilst social value can seem an intimidating concept to those unfamiliar with it, it represents a powerful tool for organisations seeking to make a positive impact on society and the environment.

By prioritising social value, organisations can not only meet legislative requirements, but they can also enhance their long-term sustainability and competitiveness. As the expectations of stakeholders continue to evolve, organisations that successfully integrate social value into their operations will be well-positioned to thrive in the years to come.

Additionally, delivering social value effectively has the potential to completely change communities. It provides community and people with opportunities, that they may not traditionally have had access to them. This leads to long-term positive change that can contribute to wider societal impact.

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