This is a 6 part blog series on strategising, planning, budgeting, and implementing social value. The aim is to present the key principles of efficient, meaningful and commercially viable social value delivery.
The right combination of technology, people and partnerships is the way forward for creating an operational system that creates both tangible social impact and ROI for your business. However, no platform or software can do everything for you – social value is simply too complex and multifaceted. Here are some perspectives for you to consider when choosing systems and processes that best align with your company’s goals and values.
To achieve centralisation, effective communication, cohesive strategy and technological support is essential. Strategic systems enable organisations to centrally manage data and coordinate easily, whilst saving on hiring burdens and costs. According to our recent surveys, less than half of companies bidding are currently utilising software or platforms to plan, manage and monitor social value. It is good to keep in mind that whatever technology you choose, it should always reduce the time and workforce needed to do the tasks manually or using self-made templates.
A combination of technology solutions is the key to:
- support the profitability of your contracts
- save you time in the process of bidding, delivering and reporting on social value
- provide agility to your teams to adapt and respond to an ever-changing social value climate
- build resilient networks with subcontractors, VCSEs (charities, social enterprises and other local initiatives), and government bodies
- engage with various stakeholders – both internal and external
- utilise social value data and achievements in reporting beyond social value requirements, e.g in stakeholder communications and annual reporting
The optimum combination of systems looks different for every company. You need to invest in solutions that will best support the social value cycle in your company and the actions that will help you with your social value legacy or narrative.
There are various types of social value tools on the market to choose from:
Social Value Proxy Calculators – Monetisation Tools
There are plenty of options for social value/ESG calculator tools on the market – these tools help organisations create a numeric value for their social and environmental contributions. They rely on economic modelling and assumptions to provide indicative monetary values for societal benefit – either benefits for people or saving costs on social services. Each provider uses different data sources and methodologies. Calculator tools can help you make more informed strategic decisions on how to allocate resources and what kind of activities could deliver the highest benefit if implemented correctly. Financial values can be seen as a ‘common language’ where like for like can be compared and more stakeholders can get an intuitive sense of the scale of impact. Ultimately improving communication, decision-making and accountability.
Social value calculators are not without their weaknesses:
- Monetised values are not facts, they are simply proxies and cannot be compared with values delivered using another tool. In addition, any monetary calculations in reporting should be supported by qualitative, evidence-based data on the delivery and outcomes.
- Consider these calculators as a ‘bookkeeping system’. They do not help you implement or generate any social value on an operational level.
- Although your organisation may choose to use a particular calculator to monitor ESG or social value, in government contract work you might be asked to use another system to report. Hence, you must have a system in place to monitor all social value delivery, beyond what one calculator product provides.
Creating social value means action and deeds
The implementation and validation of calculated activities require other software, labour and partners. The labour costs of delivering social value e.g. coordinating company grant programmes, product donations, volunteering, finding the right local partners and managing data from various sources can generate a lot of hidden costs and inefficiencies. We at whatimpact have created the ultimate social value management tool with two management levels: 1) A grassroots social value delivery platform with company-charity matchmaking, reporting and volunteering management. 2) A social Value data dashboard system to manage ALL social value created from a contract, ESG and CSR point of view.
Using technology also allows companies to deliver local social value without them necessarily being based locally. The key factor in successful partnerships and impact is finding the right match. This involves shared values, an alignment of resources, and diligent coordination. Not having a local presence in some geographical areas should not be a hindrance when bidding on or winning a tender – technology can connect you with the right partners and beneficiaries across the country.
Why are CSR systems not serving social value delivered in government contracts?
Employee-driven software/platforms are used to engage employees and teams through volunteering, payroll giving, employee fundraising and other acts of charity. Some of these platforms are specifically for volunteering only. These initiatives are a great way to keep employees motivated and help them make a difference in our society in ways that align with their personal goals and motivations. However, when it comes to goal and target-driven social value delivery, it is crucial that volunteering and other donations are allocated based on locality, outcomes and contractual timings. CSR systems are not designed to cater to these requirements.
The Government Social Value Model and other local social value frameworks followed by local authorities and central government focus on specific outcomes and impact. These outcomes do not always match with the causes most popular amongst employees. To deliver meaningful volunteering, companies should plan to deliver quantified, significant value e.g. the skills of a professional team solving a challenge in a project which delivers additional value or cost savings to the initiative/charity/social enterprise. whatimpact.com platform technology is built for this purpose, alongside catering to all CSR-related activities.
Building internal processes and harnessing the right technology for your organisation will support your returns and ensure you maximise the social value you can produce in any given local area.
