Why Your Business Should Focus on Social Value

Running a business is tough, and there are countless factors you will need to consider as part of your business management to ensure you stay competitive. However, one factor that many firms often overlook is social value.

Nevertheless, it shouldn’t be this way; after all, the Public Services (Social Value) act was ruled in 2012 and implemented in 2013. As such, in this day and age, businesses must consider the social value act as part of their decisions. Still, if you’re feeling unsure, don’t worry; we’ve outlined several key questions, such as “what is social value in business” and “how can social value benefit my business” as follows to help.

What is Social Value in Business?

What is social value in business? This question is a frequently asked topic, and it’s understandable; after all, there is no specific definition as to what constitutes good social value. Instead, social value models are used to assess the social value that a firm can deliver, which in turn outlines the business’s level of social value and potential to provide community benefits.

Still, it is worth considering that social value is a quantifiable metric, enabling businesses to easily cross-compare their social value efforts with the efforts of other firms.

Social value covers several different factors, all relating closely to the benefits that the business can deliver to local and national communities.

These factors include:

• Social wellbeing benefits
• Environmental sustainability
• Economic support
• Recovery from the Covid-19 pandemic

Investing in any of these social value areas can significantly boost your business. As such, this is vital to consider as part of your regular operations.

Social Value is a Necessity for Public Businesses

Social value is necessary if you run a public business or engage with contracting on public projects. After all, these projects are paid for with public taxes and money; as such, it’s only natural that the communities would expect to see genuine benefits accordingly.

With this in mind, during the contract bidding process, you’ll need to outline how your firm plans to deliver good social value for communities during the project. This is now a significant factor in the decision-making process, and ensuring your firm has strong social value policies can drastically boost the strength of your case.

Do Private Businesses Need to Focus on Social Value?

If your business does not work on government or public projects, your firm’s social value measure may be less of a tie. However, this doesn’t mean that you should avoid investing in social value.

After all, the social value provides countless benefits to local communities; by supporting these communities, you’ll significantly strengthen your reputation and increase the chances of making sales locally.

As such, even for non-public organisations, social value can be a genuine selling point that could substantially increase your overall level of competitiveness. Therefore, it’s something we strongly recommend all businesses focus on, both from social value and consumer perception perspectives.