Social Value Portal is a Business Reporter client
Today’s business world is being redefined by the explosive demand—from governments, investors, and employees—for companies to make a positive impact on society.
This has led to the rise of ‘social value’, a new UK government-approved approach to measuring and reporting the added benefits businesses bring to communities and the environment.
This is why social value is the key to many outcomes – from faster business growth and better talent attraction to improved reputation and investor interest.
What is social value?
Although its importance has grown over the past decade, many still do not know the social value. Simply put, social value is the new currency of business: it describes the positive contribution that organizations make to the environment, society and economy – especially in response to defined local needs.
What differentiates social value from traditional CSR or even environmental, social and governance (ESG) reporting is that it is integrated into the fundamental way a company operates.
It’s not just about temporary philanthropy or regulatory compliance. It’s about including value creation in all company activities, from hiring and training employees to purchasing goods and services.
Why does social value matter to companies?
Social value is more than moral compulsion; it is also strategic. In fact, there are at least four key reasons why companies that embrace social value are better positioned to succeed:
- Legislation: Between the Social Value Act 2012 and Procurement Policy Note 06/20 of the Corporate Sustainability Reporting Directive, legislation requires UK public sector organizations to assess social value in their supplier selection.
- Attracting and retaining talent: According to the Harvard Business Review, 70 percent of employees would not join a company that does not have a clear sense of purpose.
- Investor interest: The investment world is changing, and 54 percent expect to increase their sustainable investment activities next year.
- Building brand trust: Social value gives companies a powerful tool to communicate a genuine commitment to positive change – and reputational benefits.
How the new government and procurement act drive social value
Britain’s new Labor government made social value a key goal of its 2024 general election pledges, promising to streamline public sector procurement and enhance transparency in delivering social value.
Labour’s plans include appointing a director of social values policy to the Cabinet Office and establishing a social values council to set standards and promote accountability. Its “Five Tasks” are also closely aligned with social value priorities.
This shift is further reinforced by the new Procurement Act, which requires companies to publicly report and validate delivery of key performance indicators – including social value. According to the new procurement law, if a company has not been able to produce the social value it has committed to, it will be made public.
“According to the new procurement law, if a company has not been able to produce the social value it has committed to, it will become public.” – Guy Battle, CEO of Social Value Portal
How is social value measured?
One of the biggest challenges companies face when it comes to social value is quantifying their contribution.
The Social Value Portal has filled this gap Social Value TOM System™ (themes, results and measures) which allows companies to track their overall contribution to society “Social Value £” based on government data. This can be reported to stakeholders and compared to industry standards.
The TOM System™ is the most widely used social value measurement standard in local government and is fully consistent with the state’s “Social Value Model” guidelines.
Overcoming barriers to creating social value
The biggest challenge companies face when it comes to social value is generating the ability to produce and embed the creation of social value into their operations.
At Social Value Portal, we help our customers do this with a five-step method:
- Understand local needs: After all, the greatest value is delivered where it is most needed.
- Align business strategy: Ensuring that initiatives are relevant to the company’s operations and community priorities.
- Build internal capacity: Social value should be a priority for the entire organization.
- Create a clear measurement framework: What you can measure, you can manage and build.
- Report progress: This is key to the credibility of a social value strategy – tell stakeholders and the community what you are achieving.
With accusations of greenwashing and “social washing” on the rise, third-party validation of social value delivery data is critical to ensure that reporting is accurate and meaningful. That’s why Social Value Portal offers data validation to all our clients, with a dedicated data review team to ensure that what your organization reports is real and verified.
“Our team validates your information to ensure that whatever your organization reports is real and has been verified.” – Guy Battle, CEO, Social Value Portal
The impact of the Social Value Portal
At the Social Value Portal, we have made an ambitious pledge to deliver £100 billion of social value by 2026 with our customers. We have already delivered over £38 billion.
That’s a big number. But what’s really important is its impact on lives: 1,400 jobs for the long-term unemployed, 2.5 million tonnes of carbon dioxide, 500,000 apprenticeship weeks and much more.
Joining a social values movement
To learn more about how we can help you reap the rewards of social value, make an introductory call with one of our experts at Social value portal.