Social Value in Public Procurement

Social Value in Public Procurement – did you know that social value is one of many businesses’ most pressing current concerns?

While it can seem like a somewhat lesser goal, for many businesses, on the surface, social value is massively important. And, since the rollout of the social value act of 2013, it’s become more critical than ever to ensure your business is focusing on its social value.

This is equally true for companies and firms operating alongside governmental bodies.

But how does it apply to social value in public procurement projects? We’ll be considering this question today to help you understand more about how social value works for public procurement projects and what this might mean for your business.

What is Public Procurement?

Before we go any further with today’s article, it’s first important to define what we mean by public procurement. Simply put, public procurement is the process of procuring or sourcing products, services, and goods on behalf of a public authority figure.

Typically, this relates to the purchase of projects by governmental bodies and local councils.

Why is Social Value Important for Public Procurement Projects

Social value is rapidly becoming more and more critical for businesses to consider, with firms facing larger pressures to make a positive impact. Public procurement is very similar to traditional procurement; however, public procurement differs in that public money rather than business profits fund it.

With this in mind, while all public entities must operate with social value in mind, this becomes all the more vital for public procurement projects since the money funding such projects have come directly from the local and national communities.

The Importance of Social Value for Suppliers of Public Procurement

At this point, we’ve clarified that, in many cases, public procurement projects tend to face stricter requirements for social value.

That seems only fair, considering these projects are funded with public money. However, social value in public procurement projects can also provide many further benefits, such as ensuring that the project runs smoothly, reducing the chances of disruptions caused by protests, and adding value to a local community.

In turn, by focusing on boosting social value during public procurement projects, firms may be able to strengthen the local community’s economy.

This could further increase firms’ chances to benefit from the social value in their public procurement processes, with a greater amount of money available for private individuals and businesses to invest in future projects.

Who Should Consider Social Value in Public Procurement?

Many businesses taking on public procurement projects often find themselves wondering if the social value is important for them. After all, they’re hired directly by the authorities rather than the local community.

However, the social value should remain a priority both for the authority hiring the business and the firm itself.

Why is this?

Well, when hiring any new business for public procurement purposes, councils and public authorities should undeniably consider how doing so could provide a boost. For example, when arranging for catering for a public event, authorities could drive stronger social value by hiring a local catering team than a multinational food preparation provider!

However, this responsibility isn’t solely on the council’s shoulders; firms employed for public procurement should also focus on improving their social value, where possible.

This may not always be an immediately straightforwards process, but by investing in social value, the firm may be able to deliver higher-quality products to the council. In turn, this may increase the chances of being hired again by the authorities; moreover, it can also help bolster the firm’s reputation among the local and national communities.

Final Thoughts

Whether you are managing a public procurement project or working as a contractor on a public procurement project, understanding social value is integral. Indeed, since the rollout of the Social Value Act, all public companies are now required to consider their economic benefits to the local communities.

This factor is equally paramount for public procurement projects, where entities procure products, projects, or goods on behalf of authorities.