Social Value

Why Social Value Matters

In simple terms, Social Value is the positive impact an organisation has on society beyond making money. Profit is important, but it is not the only measure of success. Social Value looks at how a business improves the lives of people, supports communities, and protects the environment.

Many organisations are already creating Social Value without even realising it. For example, you might be using local suppliers, offering training or apprenticeships, reducing your carbon footprint, or encouraging staff to volunteer. These everyday actions all make a difference. They show that Social Value is not just a big idea, it is something practical and achievable.

So why does Social Value matter?

Firstly, it matters because it is simply the right thing to do. Businesses do not operate in isolation. They are part of communities, and their actions affect people’s lives. Choosing to act responsibly, support others, and reduce harm helps build a fairer and more sustainable society.

Secondly, Social Value is now becoming essential in business, especially when bidding for contracts. In the past, it might have helped you gain a few extra points in a tender. Now, many commissioners place a much higher importance on it. This means organisations must clearly show how they create positive impact, not just deliver a service. Without a strong Social Value offer, you risk falling behind competitors.

There are also clear benefits. Organisations that focus on Social Value often build stronger relationships with their communities. They can improve their reputation, attract better staff, and increase trust with clients and partners. People want to work with and for organisations that care about more than profit.

On the other hand, ignoring Social Value can carry risks. Businesses that fail to act responsibly may face reputational damage, lose out on contracts, or struggle to meet changing expectations from customers and regulators. Society is paying more attention to how organisations behave, and expectations are rising.

In today’s world, Social Value is no longer optional. It is a key part of how organisations grow, compete, and make a meaningful difference. By embedding Social Value into everyday practice, businesses can not only succeed financially but also contribute to stronger, healthier communities for everyone.

Social Value is becoming mandatory and is clearly here to stay for the foreseeable future. In Aslet & Associates’ experience, it is an area where charities and health and social care providers can really stand out. With the introduction of the Procurement Act 2023 and the updated Social Value Model PPN 002, Social Value is now a core part of how public contracts are assessed, not just an added extra. Organisations are expected to show how their work supports wider government priorities such as economic growth, reducing inequality, improving health outcomes and protecting the environment.

When working with clients at the start of a bid, it often becomes clear that they are already delivering strong Social Value in their day to day work, but they are not always capturing or evidencing it clearly. Under the latest model, there is a much stronger focus on measurable outcomes, clear commitments and ongoing reporting throughout the life of a contract.

This is why setting clear, specific and realistic Social Value targets, backed by strong evidence and aligned to government priorities, is now essential before a tender is released. Social Value must be built into service delivery rather than treated as a separate add on. Aslet & Associates’ tender support service can support you to strengthen this area and prepare for these higher expectations. If you have an important bid coming up, it is worth getting in touch to see how they can help.