The power of social value
How businesses can positively impact communities and the environment
INNOVATION & IMPROVEMENT
Image: Istock
Mandy Padda
Bids and Tenders Manager, Campbell Tickell
Mandy Padda
Bids and Tenders Manager, Campbell Tickell
Issue 71 | April 2024
Social value is the positive impact an action, project or initiative has on the lives of individuals, communities and environment. It incorporates the benefits and contributions that go beyond just financial gains and focuses on the overall wellbeing and improvement of communities. Social value includes a wide range of factors such as environmental sustainability, ethical business practices, community development and investment, health and wellbeing.
Why is social value important?
Social value can benefit society by encouraging organisations to contribute to societal wellbeing by addressing social and environmental challenges. It encourages sustainable business practices, reducing negative impacts on the environment and promoting long-term business sustainability.
Since the introduction of the Public Services (Social Value) Act 2012, central government, local authorities and other public sector buyers must consider how the procurement of services might improve the economic, social and environmental wellbeing within their local area.
Social value, as many suppliers know, is part of the evaluation criteria when bidding for public contracts. Suppliers must be able to demonstrate how they will deliver social value alongside the contract outcomes. As a supplier it is important to consider what is achievable and deliverable within the constraints of the contract.
“Encourage and support employees in participating in volunteering activities.”
Implementing social value
Your social value commitments should not only help drive customer value and generate social, economic and environmental benefits, but also benefit the lives and wellbeing of your employees and the communities you work with. Below are some examples that could be implemented in organisations:
- Ethical sourcing: vet your supply chain to ensure it adheres to both ethical and sustainable practices, and promotes fair labour (e.g. living wage).
- Volunteer programmes: encourage and support employees in participating in volunteering activities.
- Equality, Diversity & Inclusion (EDI): promote EDI in your organisation by creating an environment that values and respects individuals from different backgrounds.
- Reducing carbon footprint: implement energy-efficient practices, reduce waste and explore renewable resources to minimise your carbon footprint.
- Fair labour practices: ensure you pay the living wage to all employees and offer safe working conditions.
It is likely these initiatives have already been implemented in your organisation, however by reporting on what you are doing and raising awareness both internally (to employees) and externally (to suppliers and clients) on social and environmental issues, you may be able to inspire positive change.
There are many benefits to implementing social value. Below are some examples:
Businesses
- Businesses that prioritise social value often enjoy a positive reputation, leading to increased trust and loyalty from customers, employees and stakeholders.
- Socially responsible practices appeal to a growing segment of socially conscious consumers, which could lead to increased customer acquisition and retention.
Communities
- Socially responsible organisations could contribute to local economic development by creating job opportunities and supporting local businesses.
- Initiatives promoting health and wellness, such as healthcare services or leisure facilities, positively impact the physical and mental wellbeing of community members.
Employees
- Employees often feel more motivated and satisfied when they feel that their work contributes to a meaningful cause, fostering a positive work environment and improving retention rates.
- Socially responsible practices can lead to higher levels of employee engagement, as individuals find meaning and motivation in contributing to initiatives, whether this is a pledge or volunteering that align with their values.
Environment
- Businesses and communities adopting social value principles often prioritise sustainable practices, reducing environmental impact through energy efficiency and waste reduction.
- Supporting and investing in renewable energy sources helps decrease reliance on non-renewable resources and mitigates the impact of climate change.
