Reactive vs strategic social value: Are there benefits to adopting a responsive approach to social value over a strategic thematic approach?

Katie Smart, Associate Director at Lexington

Follow the link to reserve a spot at Lexington's inaugural Social Value Summit on Thurs 18th April: https://www.eventbrite.co.uk/e/lexingtons-social-value-summit-2024-tickets-870944326927?aff=oddtdtcreator

Why this matters

Social value is now a well-established feature across almost all major UK public sector purchasing decisions. No matter if a business is a seasoned expert in responding to public sector tenders or an occasional bidder, all suppliers must provide a comprehensive methodology on how they will deliver social value across the project.?

But it's not just public procurement suppliers that need to be concerned about social value. Thanks to increasing ESG disclosure regulation and the downward pressure from government on public procurement, more businesses now place higher importance on ESG disclosures in their supply chain and that of their suppliers. That means even if you are not a direct supplier to public sector you could still be subject to social value requests to retain contracts and remain competitive.?

The varying models of social value

The challenge comes when you consider there are over 1,200 different government agencies and public sector bodies following several different models of social value resulting in a mix match of requirements and confusion for suppliers on what to focus resource on and how deliver meaningful impact.?

From PPN06/20 for central government contracts to the TOMs framework for local authorities, and independent methodologies in between, suppliers face a great deal of variation across themes and metrics of social value. This can result in a scatter gun responsive approach to social value commitments. In lieu of a social value framework and strategy, this might be the only option available to some businesses.?

Navigating the landscape

We know one thing for sure, social value works best when it is specific to the delivery of the contract and the needs of the communities you are working with. So, is there a problem with the reactive response? If it gets the job done and fulfils the needs of the community as specified by the buying authority, then everyone wins.?

The benefit of a strategic approach could help businesses better target their resources, better understand the needs of the communities they are working in and increase their overall added value across not only one project but their whole portfolio.?

In our experience, businesses new to social value will start off with the responsive approach resulting in pockets of impactful activity spread across business divisions and geographical regions. This can prove hard to track and measure. As businesses mature in their understanding and delivery of social value this often evolves into a more strategic approach. We believe that there is benefit to embedding a more comprehensive approach much earlier - mapping activity to the themes of social value and the focus areas of businesses sustainability strategy.?

We work with businesses who are placing social value principles at their core – from developers and healthcare companies engaged in major public tenders, to FMCG businesses who recognise the strategic and communications benefits.

Contact?[email protected]?to have a chat about how we can help evolve your social value strategy.