What is Social Value in Business?

Social value is the broader social, environmental and economic benefit that an organisation creates beyond its core commercial activities. It’s about understanding the wider consequences of business decisions and deliberately shaping them to generate positive outcomes for communities, the environment and the economy.

For businesses, social value represents both an opportunity and increasingly, an expectation. It’s the difference between simply extracting value from communities and actively contributing to them. It’s employment opportunities for local people, apprenticeships that build skills, supply chain decisions that reduce carbon emissions, and initiatives that tackle inequality or improve wellbeing.

Why social value matters for businesses

Procurement requirements

In the public sector, social value is no longer optional. The Public Services (Social Value) Act 2012 requires public bodies to consider social value in procurement decisions. More recently, government policy has strengthened this, with social value now accounting for at least 10% of evaluation criteria in central government contracts, and similar approaches being adopted across local authorities, housing associations and other public bodies.

This shift means businesses tendering for public sector work need to demonstrate not just what they’ll deliver, but how they’ll deliver it in ways that create wider benefit.

Stakeholder expectations

Beyond procurement, stakeholders of all kinds now expect businesses to demonstrate their contribution to society. Investors increasingly consider ESG factors in their decisions. Employees, particularly younger generations, want to work for organisations whose values align with their own. Communities expect businesses operating in their areas to contribute positively.

Business benefits

There’s a compelling business case for social value beyond meeting procurement requirements. Organisations with strong social value credentials find it easier to win contracts, attract and retain talent, build community support for their activities, and differentiate themselves in competitive markets. Social value done well also drives innovation, strengthens relationships with supply chains and can improve operational efficiency.

What counts as social value in business?

Social value is broad. It includes:

Social outcomes 

such as creating employment opportunities, providing skills training and apprenticeships, supporting disadvantaged groups to access work, improving health and wellbeing, tackling homelessness, and strengthening community cohesion.

Environmental outcomes 

including reducing carbon emissions, protecting biodiversity, minimising waste, using sustainable materials, improving air quality, and contributing to climate adaptation and resilience.

Economic outcomes 

like supporting local businesses and supply chains, creating innovation opportunities, contributing to regional economic growth, and ensuring fair pay and working conditions.
The specific social value priorities will vary depending on context. A construction project in an area with high unemployment might focus on local employment and training. A care provider might emphasise health outcomes and community wellbeing. A technology company might prioritise digital inclusion or education.

Social value in practice

Effective social value isn’t about grand gestures or bolt-on CSR activities. It’s about examining how you already operate and identifying opportunities to enhance positive impact through everyday business decisions.

This might mean adjusting procurement policies to give more weight to local suppliers, creating structured apprenticeship programmes, partnering with social enterprises, designing products or services with accessibility in mind, or measuring and reducing your carbon footprint across operations and supply chain.

It also requires measurement. Understanding the social value you create means establishing baselines, setting targets, tracking progress and being transparent about outcomes. This evidence demonstrates accountability to stakeholders and helps identify where you can do more.

The opportunity

Social value represents a fundamental shift in how we think about business success. It recognises that organisations don’t exist in isolation from the communities and environments they operate within. Those who embrace this shift, who genuinely integrate social value into strategy and operations rather than treating it as a compliance exercise, will find themselves better positioned for the future.

The question isn’t whether social value matters—that’s settled. The question is how your organisation will respond to the opportunity it represents.

Ready to measure your impact?

Whether you’re looking to strengthen your social value reporting, improve your tender submissions, or simply understand the difference you’re already making, we’re here to help. Get in touch today.