Social Value takes Centre Stage
A vital component in how procurement decisions are made
Key Areas:
Environment
Adopting sustainable practices, reducing carbon footprints, and championing conservation initiatives.
People
Ensuring employee well-being, fostering diversity, inclusion, and promoting a fair, growth-oriented workplace.
Innovation
Deploying new, effective solutions to meet societal needs and challenges.
Community
Engaging with local communities, supporting local initiatives, and delivering projects that uplift and empower.
Responsible Supply Chain
Ensuring ethical sourcing, promoting fair trade, and advocating for sustainable supply chain practices.
Page Contents
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What is Social Value?
Social value refers to the broader non-financial impact of projects, policies, and organisational operations, encompassing positive changes in well-being, society, and the environment.
Social Value in Business
For businesses, it’s the positive imprint they leave on society, beyond just monetary gains, ensuring long-term sustainability and stakeholder satisfaction.
Social Value in Procurement
Procurement teams evaluate suppliers not just on cost-effectiveness but on their capacity to deliver positive societal and environmental outcomes.
Social Value Proposition
This defines the specific societal and environmental benefits an organisation commits to delivering, setting it apart from competitors.
The Social Value Act
Introduced in the UK in 2012, this mandates public bodies to consider social value when commissioning public service contracts.
Social Value Reporting
An integral part of transparency, it involves communicating an organisation’s social impact in clear, quantifiable terms to stakeholders.
Social Value Policy
A set guideline within an organisation that directs actions, decisions, and allocations in favour of maximising social value.
8 Guiding Principles
- Involve Stakeholders: Regularly engage with those impacted by your operations to gather insights.
- Understand What Changes: Recognize and measure the tangible differences your initiatives make.
- Value the Things That Matter: Prioritise initiatives that have the most significant positive impact.
- Only Include What Is Material: Ensure that all reported outcomes are relevant and significant.
- Do Not Overclaim: Be honest about the reach and impact of your initiatives.
- Be Transparent: Regularly communicate your efforts, achievements, and failures.
- Verify the Result: Adopt third-party evaluations to maintain credibility.
- Be Responsive: Act on feedback and be willing to adapt based on outcomes.
Procurement Regulations
Incorporating social value into procurement processes ensures that contracts are awarded not just based on cost but on the broader positive impact potential. This is often quantified through award criteria with a specific social value weighting.
Real-life Examples
Local Economic Growth
Initiatives that directly boost local economies through investment and job creation.
Education, Employment, Training & Skill Development
Programs aimed at enhancing the skills of the local populace.
Environmental Sustainability
Projects focusing on green practices and conservation.
Community Engagement & Development
Efforts aimed at uplifting and empowering local communities.
Health & Well-being
Initiatives promoting physical and mental health.
Inclusion & Diversity
Efforts focused on fostering diverse and inclusive environments.
Innovative Solutions for Vulnerable Populations
Tailored solutions addressing the unique challenges faced by vulnerable groups.
Heritage & Culture Preservation
Projects aimed at conserving cultural landmarks and traditions.
Stakeholder Collaboration
Joint efforts between multiple parties to achieve shared goals.
Transparency & Accountability
Measures ensuring organisations remain answerable to stakeholders.
Conclusion
In today’s world, where businesses are held to higher standards than ever before, understanding and integrating social value has become indispensable. Whether you’re a procurement professional assessing tenders or a business crafting your next bid, recognising the importance of social value is a step towards a sustainable and inclusive future.