Social Value Models: What You Need to Know

Operating a business is tough, understandably – and, as of January 2013, it has become a requirement for firms to provide good social value to their local consumers and customers as well.

However, social value is not always easy to determine at the outset, which is where social value models may come in.

But what are social value models, and how could they help your business analyse its performance in terms of delivering social value?

We’ll be considering these crucial questions today to help your business find the most appropriate strategies to boost its social value, too.

What are Social Value Models?

When it comes to government procurement for services, the social value models play a highly significant role. Indeed, assessing which businesses are providing good social value can be relatively difficult, on the surface, considering the differing business models and communities of each firm.

However, social value models provide a simple way for government employers to overcome this challenge.

The social value models measure several different metrics that outline the ways that a business can provide social value.

This is mainly assessed through a series of social value-based questions; these questions also determine the likelihood of the business delivering on its social value promises.

As such, it’s important to consider these carefully before applying for any government contracts; it’s likely better to have an attainable and valuable goal than one that seems impossible to deliver on.

Why is it Important for Businesses to Follow Social Value Models?

For many businesses, the social value models can seem like a nuisance. However, there are two critical benefits to delivering social value that firms should consider.

First, social value enables businesses to work on government projects.

Government projects can often be lucrative and long-term earning opportunities for a business, which may explain why they are often highly sought after. Furthermore, providing good social value offers an additional way for your business to set itself apart from the crowd, helping strengthen your case overall.

Moreover, it is well worth considering that social value models enable your business to increase its reputation with local communities. This helps reduce the chances of your business facing difficulties during the project from unhappy locals; moreover, it may help your firm achieve more work and custom, going forwards.

How Have Social Value Models Changed Recently?

The social value models previously focused on environmental, economic, and social wellbeing goals. However, in recent times, social value models have changed to also include Covid-19 recovery as part of the metrics. Hence, for businesses looking to increase their social value, the new social value models allow even greater opportunities for recovery overall.

However, it is important to consider that social value may not always be a two-minute job and does still require a lot of dedication and commitment from your business, so you should always consider the different options and opportunities and whether these are genuinely practical for your business model.

Remember: attainable social value will have a more significant impact than an impossible goal!

Final Thoughts

If your business is looking to operate in the public sector, be it working on a government-backed project or as a public firm, it’s crucial to consider how social value might apply to you.

With that being said, social value models can also provide a wealth of opportunities for non-public businesses, too – most notably in terms of increased reputation overall.

With this thought in mind, today, we’ve outlined some of the key things you need to know about social value models and how to incorporate them into your firm.