What is Social Value
There is a growing expectation for organisations to contribute positively to society beyond their economic activities. In the UK, this has given rise to the concept of social value, which emphasises the importance of delivering benefits to communities and the environment alongside traditional business goals. Social value exists to encourage businesses to operate responsibly, ensuring that their actions lead to meaningful improvements in societal well-being and environmental sustainability.
What Social Value Is
Social value refers to the broader impacts of an organisation's work on the social, economic, and environmental well-being of the community. It goes beyond the financial aspects to include factors like community cohesion, environmental sustainability, and equality. In the UK, the Public Services (Social Value) Act 2012 mandates public sector bodies to consider social value in their procurement processes. This means that when contracts are awarded, consideration is given not just to price and quality but also to the additional benefits that suppliers can bring to the community. In almost all cases, Social Value now accounts for at least 10% of the evaluation scores for bids.
How to do Social Value in Bids
Incorporating social value into bids is crucial for businesses aiming to secure contracts, especially with public sector clients. Here's how you can effectively embed social value in your bidding process:
Understand the Client's Priorities: Research the social value objectives of the contracting authority. Align your proposals with their specific goals and demonstrate how your services can meet them.
Set Clear Objectives: Define measurable social value outcomes you aim to achieve, such as creating apprenticeships, reducing carbon emissions, or supporting local suppliers.
Develop a Delivery Plan: Outline how you will implement your social value initiatives. Include timelines, resources, and responsible personnel to show you have a concrete plan.
Measure and Report: Use recognised frameworks like the National Themes, Outcomes, and Measures (TOMs) to quantify and report on your social value contributions.
Demonstrate Experience: Provide case studies or testimonials from previous projects where you've successfully delivered social value.
Why You Should Deliver Social Value
Embracing social value offers numerous benefits both in bidding for contracts and at a corporate level:
Competitive Advantage: Incorporating social value can differentiate your bids, increasing your chances of winning contracts.
Enhanced Reputation: Demonstrating a commitment to social responsibility strengthens your brand and builds trust with stakeholders.
Employee Engagement: Social value initiatives can boost staff morale and attract talent who want to work for ethically responsible companies.
Long-Term Sustainability: Focusing on social and environmental impacts can lead to more sustainable business practices and resilience against market fluctuations.
When to Deliver It
Social value should be integrated throughout the entire lifecycle of a project:
Pre-Contract: Identify social value opportunities during the planning stages and include them in your bid proposals.
During Execution: Implement social value initiatives as part of your project delivery, ensuring they are monitored and managed effectively.
Post-Completion: Evaluate the impact of your social value contributions and report back to stakeholders, highlighting successes and lessons learned.
Conclusion
Social value is an integral part of modern business practices in the UK, particularly within public sector procurement. By understanding what social value is and how to effectively incorporate it into bids and corporate strategies, businesses can not only comply with legislative requirements but also gain a competitive edge, enhance their reputation, and contribute positively to society. Embracing social value is not just about meeting obligations—it's about being a catalyst for positive change in the communities we serve.