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Social Value takes Centre Stage

A vital component in how procurement decisions are made

What does this term entail, and what’s the real significance for bids & tenders?

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

    1. Involve Stakeholders: Regularly engage with those impacted by your operations to gather insights.
    2. Understand What Changes: Recognize and measure the tangible differences your initiatives make.
    3. Value the Things That Matter: Prioritise initiatives that have the most significant positive impact.
    4. Only Include What Is Material: Ensure that all reported outcomes are relevant and significant.
    5. Do Not Overclaim: Be honest about the reach and impact of your initiatives.
    6. Be Transparent: Regularly communicate your efforts, achievements, and failures.
    7. Verify the Result: Adopt third-party evaluations to maintain credibility.
    8. 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.

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