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Social Value, The New Currency:

Social Value is a concept often used to quantify and recognise contributions to social, environmental, or community-related initiatives. It represents a measurable acknowledgment of actions that generate positive societal impacts. These credits are typically used in contexts like corporate social responsibility (CSR), sustainability projects, or community development programs.

What is Social Value:

Social value is the positive impact that a project, service, or organisation has on people and communities.
It’s about making society better through actions like:

  • Creating jobs
  • Improving health and well-being
  • Supporting education
  • Protecting the environment
  • Strengthening communities
Why is it important for your business?

Delivering social value means doing more than just making a profit, it means actively benefiting people, communities, and the environment through your work.

Organisations deliver social value when they use their resources and activities to make a positive difference beyond their core business.

What is Social Value:

Social Value is a desire to generate long-term positive impacts for local communities, the environment, and other stakeholders – while generating profits and financial success for a company. For businesses to meet the scale of the social and environmental challenges we face, and thrive amidst changing demands from consumers, employees, investors and policymakers, we need a focus on Social Value that puts people at its heart.

Social Value, ESG strategies and brand trust are closely connected, and one of the best ways of powering all three is by supporting local community causes that have the potential to deliver quickly on the Social Value model, from the ground up. Thriving communities mean thriving businesses and a thriving economy. So finding ways to implement, measure and sustain a localisation strategy is essential for the future of any business. To deliver big goals, you need to think local.

What is ESG:

Creating an ESG strategy that can withstand the test of time, stakeholder demands and organisational culture, can be overwhelming. In order to deliver impact, organisations need to clearly define their measurable objectives from the very beginning.

A materiality assessment is the process of understanding what is important to your organisation and should be the foundation of any ESG strategy. Materiality assessments are created to consider more than just the business impact, so financial and non-financial, a concept known as double materiality.

Materiality is continuously evolving and is scaled to provide the correct level of insight to start strategy planning. The importance of ESG topics varies by industry, company and stakeholders.

What does it mean for public sector contracts?

In the context of public sector procurement, social value refers to the additional benefits that suppliers can deliver to society when providing goods, services, or works for publicly funded organisations.

It means that when these organisations (councils, NHS, blue lights or government departments) procure something, they don’t just look at price and quality they also consider how the supplier will:

  • Create local jobs and apprenticeships
  • Support small businesses and voluntary organisations
  • Improve community well-being
  • Reduce environmental harm
  • Promote equality and tackle disadvantage

 

In simple terms: Social value in public sector procurement is about using public money to get better outcomes for society, not just buying a product or service, but also helping communities thrive.

This can be challenging to outline let alone deliver from a financial and resource perspective.

Over 300,000 Beneficiaries

All benefiting from receiving Social Value credits

and delivering Social Value on your behalf

Through our strategic partner.

What solution SVDS can offer suppliers?

We work with Charities Buying Group, who have 25 years of experience in Social Value, to help organisations clearly define what Social Value they want to achieve. Our trusted partners then deliver this Social Value nationally, regionally, or locally.

We also track, measure, and report all the Social Value created, using a reliable system that shows the real impact of your efforts.

How to overcome some of the challenges
  • Get involved early: Start defining social value requirements as soon as a tender is considered. Early clarity reduces last-minute pressure and increases the chance of winning the contract.
  • Use multipliers, not low proxy values: Applying social value multipliers early can significantly boost the value of your bid and help commercial teams price bids better, avoiding unrealistic social value targets that are hard to achieve.
  • Understand the scale: Social value targets often require 5-10% of contract spend, which can be overwhelming when managing multiple contracts. Clear guidance and case studies help suppliers set achievable goals.
  • Ongoing impact and reporting: Social value measurement is continuous. Regular updates (usually quarterly) on platforms like the Social Value Portal are essential for evidence and customer reviews.
  • Local delivery matters: Some areas require social value impact at a very local level (e.g., specific wards). This can be challenging, but SVDS offers solutions to manage hyper-local social value requirements.
Reporting & Frameworks:

There is no single approach to ESG reporting, and the best method varies by business. It is a complex yet vital tool for managing ESG impacts and meeting stakeholder and investor demands.

Understanding why your organisation needs to report is essential and could stem from various stakeholder pressures. A primary reason is compliance with evolving global regulations, such as the UK’s TCFD disclosure requirements by 2022 and the EU’s non-financial reporting rules for large companies. Investors, lenders, and insurers increasingly seek these disclosures due to awareness of non-financial risks.

ESG reporting helps communicate value creation and how non-financial risks and opportunities are managed. Organisations should identify who requests disclosures, what they need, and why. Given that reporting is time-intensive, focusing on relevant content for key stakeholders is crucial. The choice of reporting framework should align with stakeholder needs.

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