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. The PPN 06/20 related social value requirements have been rolled into government organisations’ procurement practices in stages and with slightly varied social value frameworks. This initiative, to harness central and local government’s buying power for good, has changed the operational landscape for every organisation involved in government procurement. It has meant that new strategies and operational activities have to be applied, both in 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 is important that this profitability does not come from raising the costs of the bids for the sake of social value. In terms of efficiency of the impact, we must ensure that the administration costs of social value do not exceed the benefits of these investments. Ensuring social value is efficiently managed means there are more resources available to allocate to making a difference. This again helps companies win more tenders and maximises societal benefit.
This social value management and budgeting handbook is a practical guide based on our experience and research on how companies can plan, deliver and report on social value for their own business and wider society. The focus of this handbook is on the value delivered through partnerships between organisations, harnessing resources and capabilities in an innovative and effective manner.
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.