When considering social value from social, environmental, and economic perspectives, its influence on the private sector and business practices is profound, presenting both opportunities and risks. Companies are increasingly driven to embrace sustainability for various reasons critical to their future success. For example, compliance with sustainable procurement regulations, attracting investors interested in sustainable companies, securing top talent attracted to ethical employers, and meeting consumer preferences for products with a positive social and environmental footprint. This trend presents both opportunities and risks. Henceforth, highlighting the significance of taking social value seriously.
Enhancing Social Value Delivery and Impact Assessment in Tender Processes:
Social value plays a crucial role in the realm of global government procurement, offering significant opportunities for companies and Voluntary, Charity, and Social Enterprise organisations (VCSEs) to secure contracts.
Adhering to social value principles positions companies to win future contracts. In the UK, mandatory regulations on social value in procurement have increased responsibilities across communication, CSR, and sales departments. Winning bids now hinge on robust social value plans, requiring careful formulation and implementation. Since the introduction of PPN 06/20 in January 2021, both the Central Government and local authorities have observed successes and failures in social value implementation. Overpromising has resulted in some companies losing contracts, as competitors scrutinise the delivery of social value by winning contractors. There are real-life cases where fines and service retainers have been used to penalise those overpromising and underdelivering. The stakes are high, especially for contracts of considerable value.
Emphasising ESG Reporting and Transparency:
Companies evaluate their sustainability and governance through annual Corporate Social Responsibility (CSR) or Environmental, Social, and Governance (ESG) reporting. They often quantify these efforts monetarily. Therefore, case studies are used to highlight the impacts, yet they often focus on inputs (e.g., volunteering hours, monetary donations, employment numbers) and outputs (reach, scale) rather than verified outcomes (the actual difference made). With no universally accepted framework for measuring or reporting social value, reporting practices and tools vary widely. This lack of clear evidence in CSR/ESG claims poses risks of greenwashing and potentially, ‘social washing’ lawsuits. Research suggests that sustainable companies can enhance their long-term value by 4-11%. Essentially by attracting investors, consumers, talent, and partners. However, unsubstantiated claims pose significant risks that could negate these benefits.
Both risks can be mitigated through a clear strategy emphasising social and environmental value, rooted in transparent added value supported by evidence. Companies must not only commit to their internal stakeholders but also prioritise the well-being of their broader communities and supply chains through meaningful partnerships.
You can also read our article in Open Access Government, a leading policy publication in the UK, about the three key principles for impactful social value here.
More about how whatimpact
whatimpact’s inherent mission is to help reduce the cost of social value planning, daily delivery and reporting. In turn allowing more resources to be put into societal and environmental good. We advise companies to carefully think, about whether to hire employees and consultants to ‘manually’ find local community engagement partners. Do they need to write social impact reports? All you require can be streamlined with advanced technology like ours. We especially advise companies to focus on keeping their social value delivery promises and providing validated impact data as evidence. As ‘greenwashing’ and ‘socialwashing’ can put a company in a very serious position taking financial, legal and reputational risks.
To find out more about whatimpact can do for your company book a demo with our team HERE.
