Almost two years ago it became mandatory for companies and other service providers to deliver social value as a part of their contract work for central government and local authorities. Government organisations have gradually incorporated social value requirements from PPN 06/20 into their procurement practices. They have slightly varied social value frameworks. This initiative, to harness the government’s buying power for good, has changed the operational landscape for every organisation involved in government procurement. This necessitates applying new strategies and operational activities in both tendering and tender bidder organisations.
Social value in government procurement is a complex and vast concept. It entails providing value to local areas and nationwide communities through community engagement, environmentally sustainable practices, employment and supply chain decisions. These social value contributions should derive from the inherent strengths of tender bidders and be additional to general CSR/ESG practices.
We at whatimpact.com have worked closely with a large number of councils, government procurement agencies and central government organisations to learn how companies who take social value seriously, and are actively avoiding tick-box approaches, can demonstrate their commitment to delivering added value to society through the contract period.
Organisations, companies and others are commercially dependent on the profitability of their contracts with government bodies. It is therefore essential that social value is managed efficiently using the best resources, practices and tools to make sure SROI is turned into ROI. From society’s perspective, it’s crucial that profitability doesn’t result from inflating bid costs for social value. We must ensure that social value administration costs don’t outweigh the benefits of these investments for efficiency of impact. Efficiently managing social value ensures more resources are available to allocate towards making a difference. This again helps companies win more tenders and maximises societal benefit.
Social Value Management
This social value management and budgeting handbook is a practical guide based on our experience and research. Our research follows how companies can plan, deliver and report on social value for their own business and wider society. This handbook focuses on partnerships between organisations, innovatively and effectively harnessing resources and capabilities to deliver value.
Tiia Sammallahti, CEO & Founder of whatimpact.com, September 2022
What more is included in the Handbook? Check out the table of contents here:
Get your hands on a copy of our Social Value Management Handbook! You can read more about the guide & how to get your copy here.
