Social Value
While most companies now recognise the importance of their social impact, many find it difficult to act on: unlike environmental sustainability, the "S" of ESG has lacked a common language, established metrics, and clear ownership within the business, leaving even committed companies unsure where to start.
This is where social value principles come in - not as a departure from social sustainability, but as the practical means of delivering it. Social value approaches provide the frameworks, measurement tools, and business language needed to move from aspiration to action: quantifying impact, embedding social considerations into procurement and governance, engaging stakeholders meaningfully, and communicating performance credibly.
Long associated with public sector contracts in the UK, it is increasingly the shared language through which businesses understand and account for their impact on people, alongside financial performance. Social value is no longer just a procurement term. Put simply, social value means contributing positively to the well-being of communities, employees, and the environment.
The UN Global Compact Network UK's Social Value workstream aims to support businesses in embedding social value across their operations and supply chains. There is a focus on supporting businesses in moving beyond compliance to systematically measuring, managing, and communicating the social impact they create, from board level through to procurement decisions. In doing so, businesses will also be able to take effective action on SDG 1 no poverty, SDG 8 decent work and economic growth, and SDG 10 reduced inequalities.
| SOCIAL VALUE | SOCIAL IMPACT |
|---|---|
| The worth or benefit created for people, communities, or society. | The actual change or outcome that results from an activity or intervention. |
| Focuses on the value generated. | Focuses on the effects or changes produced. |
| Can include economic, social, and environmental benefits. | Can be positive, negative, intended, or unintended. |
| Often used in decision-making and procurement to assess broader benefits. | Often measured through evaluation and impact assessment. |